scholarly journals Private labels ain’t bona fide! Perceived authenticity and willingness to pay a price premium for national brands over private labels

2020 ◽  
Author(s):  
Djavlonbek Kadirov
Keyword(s):  
Willingness To Pay ◽  
Perceived Quality ◽  
Price Premium ◽  
Private Labels ◽  
National Brand ◽  
National Brands ◽  
Brand Evaluations ◽  
Brand Authenticity ◽  
Quality Perceptions ◽  
Bona Fide

© 2015 Westburn Publishers Ltd. As private labels are consolidating their gains in national markets, a conventional recommendation to national brand manufacturers would most likely be to invest more in marketing in order to increase the perceived quality gap between national brands and private labels. It is assumed that the quality gap would boost consumer willingness to pay a price premium for national brands over private labels. Differing from this conventional approach, the current study focuses on the perceived authenticity gap between national brands and private labels, to explore whether and how this factor influences the effect of marketing and manufacturing variables on willingness to pay. This relationship is relevant in milieus where consumers might take brand authenticity rather than quality perceptions to guide their brand evaluations. The current study finds that the perceived authenticity gap mediates the effect of only some particular conventional marketing tools on willingness to pay. The study suggests that national brand managers should take the presence of private labels in the national markets as an opportunity to exploit the dynamics of authenticity evaluations, rather than as a threat.

scholarly journals Private labels ain’t bona fide! Perceived authenticity and willingness to pay a price premium for national brands over private labels

2020 ◽  
Author(s):  
Djavlonbek Kadirov
Keyword(s):  
Willingness To Pay ◽  
Perceived Quality ◽  
Price Premium ◽  
Private Labels ◽  
National Brand ◽  
National Brands ◽  
Brand Evaluations ◽  
Brand Authenticity ◽  
Quality Perceptions ◽  
Bona Fide

© 2015 Westburn Publishers Ltd. As private labels are consolidating their gains in national markets, a conventional recommendation to national brand manufacturers would most likely be to invest more in marketing in order to increase the perceived quality gap between national brands and private labels. It is assumed that the quality gap would boost consumer willingness to pay a price premium for national brands over private labels. Differing from this conventional approach, the current study focuses on the perceived authenticity gap between national brands and private labels, to explore whether and how this factor influences the effect of marketing and manufacturing variables on willingness to pay. This relationship is relevant in milieus where consumers might take brand authenticity rather than quality perceptions to guide their brand evaluations. The current study finds that the perceived authenticity gap mediates the effect of only some particular conventional marketing tools on willingness to pay. The study suggests that national brand managers should take the presence of private labels in the national markets as an opportunity to exploit the dynamics of authenticity evaluations, rather than as a threat.

Influencing the willingness to pay for private labels: the role of branding

2015 ◽  
Vol 7 (3) ◽  
pp. 197-215 ◽  
Author(s):  
Kandapa Thanasuta ◽  
Pinrada Metharom
Keyword(s):  
Willingness To Pay ◽  
Structural Equation ◽  
Perceived Quality ◽  
Equation Model ◽  
Private Labels ◽  
National Brand ◽  
Sales Promotions ◽  
Content Type ◽  
Indirect Relationship

Purpose – The purpose of this paper is to investigate the direct and indirect relationships between brands’ marketing activities and consumers’ willingness to pay (WTP) for private labels (PLs) through the effect of perceived quality in different cultural contexts. This paper also provides a broader perspective by incorporating the effect of branding strategy on such relationships. Design/methodology/approach – Thailand is the studied market. In all, 819 respondents evaluated two PLs through mall interception in a leading supermarket in Bangkok. A structural equation model is used to evaluate the relationships among the constructs. Findings – The results demonstrate that sales promotions directly and indirectly influence WTP, whereas only an indirect relationship through perceived quality exists for the similarity of PL and national-brand packaging. The strength of sales promotions and the perceived quality relationship is significantly stronger for “other-name” PL than for “own-name” one. Perceived quality contributes as the factor with the most influence on WTP. Research limitations/implications – PLs should continue to invest in package improvement to increase their perceived quality. The brand must carefully choose which promotional tools to implement because such tools have both positive and negative impacts. Promotions from “other-name” brands should be emphasized because they have a stronger, more positive effect on perceived quality. Originality/value – This paper’s contribution is its attempt to identify the reciprocal influence of WTP on PLs, which previously has been studied only as it relates to national brands. The moderating role of branding is introduced to offer insights into the influencing factors.

What Makes Consumers Willing to Pay a Price Premium for National Brands over Private Labels?

2010 ◽  
Vol 47 (6) ◽  
pp. 1011-1024 ◽  
Author(s):  
Jan-Benedict E.M. Steenkamp ◽  
Harald J. Van Heerde ◽  
Inge Geyskens
Keyword(s):  
Price Premium ◽  
Private Labels ◽  
National Brands

scholarly journals National Brands, Private Labels, and Food Price Inflation

2014 ◽  
Vol 46 (4) ◽  
pp. 575-591
Author(s):  
Rickard James Volpe
Keyword(s):  
Low Income ◽  
Food Prices ◽  
Food Price ◽  
Private Label ◽  
Store Brand ◽  
Private Labels ◽  
National Brand ◽  
Price Inflation ◽  
National Brands ◽  
Fuel Prices

This article investigates the extent to which national brand and private label (store brand) prices behave differently as food price inflation changes. Empirical tests using a range of indices support the hypotheses that rising commodity and fuel prices lead to relatively larger surges in private label prices. When food prices are rising or high, the average price difference between national brands and private labels shrinks. The findings have implications for understanding the welfare effects of private labels. Moreover, they suggest that food price inflation is stronger for low-income households as food prices rise.

Segmentation Strategies for New National Brands

1980 ◽  
Vol 44 (4) ◽  
pp. 59-67 ◽  
Author(s):  
Robert C. Blattberg ◽  
Thomas Buesing ◽  
Subrata K. Sen
Keyword(s):  
Panel Data ◽  
Distribution Patterns ◽  
Private Labels ◽  
National Brand ◽  
Market Segments ◽  
National Brands ◽  
Brand Switching ◽  
Explicit Consideration

The authors examine the issue of determining the market segments to which a new national brand should be targeted. The usual recommendation is that the new brand should be targeted toward those segments that exhibit considerable brand switching. However, a new national brand should also attempt to attract segments that are loyal to existing national brands as well as segments that primarily purchase private labels. These implications follow from an explicit consideration of the changes in pricing and distribution patterns which occur when a new national brand is introduced. The results are illustrated with a set of diary panel data for facial tissue.

In-store marketing of private labels: applying cue utilisation theory

2020 ◽  
Vol 49 (1) ◽  
pp. 145-163
Author(s):  
Sita Mishra ◽  
Gunjan Malhotra ◽  
Garima Saxena
Keyword(s):  
Emerging Market ◽  
Perceived Quality ◽  
Private Label ◽  
New Delhi ◽  
National Brand ◽  
Content Type ◽  
National Brands ◽  
Price Consciousness ◽  
Private Label Brands ◽  
Brand Promotion

PurposeThe purpose of this study is to examine the effectiveness of in-store private label marketing to impact the attitude of consumers towards private label brands (PLBs) by influencing consumers' perceived quality variations between the PLBs and national brands.Design/methodology/approachThis study is based on “Cue utilisation theory” and focusses on how retailers can influence consumers' perception of quality variations by providing them in-store marketing cues. Data was collected through the mall intercept method in New Delhi, India. Data analysis was done using AMOS 25 and the PROCESS SPSS macro.FindingsThis study establishes the effect of in-store private label marketing in improving consumers' quality perception of PLBs vis-à-vis national brands and thereby leading to a positive attitude towards PLBs. Further, the national brand promotions attitude is found to moderate the relationship between private label marketing and attitude towards PLBs. However, contrary to the authors' expectations, it has a positive effect on this relationship. The study found an insignificant moderation influence of price consciousness.Originality/valueThis study complements existing literature on “Cue utilisation theory” by demonstrating the importance of in-store private label marketing in improving consumers' attitudes towards PLBs. It also extends to fill some gaps in the literature by studying the direct, mediating and moderating relationship among in-store private label marketing, perceived quality variations, price consciousness, national brand promotion attitude and attitude towards PLBs, especially in an emerging market such as India.

Identifying a private-label supplier on national brand

2019 ◽  
Vol 28 (3) ◽  
pp. 432-443 ◽  
Author(s):  
Samanta Pérez-Santamaría ◽  
Mercedes Martos-Partal ◽  
Álvaro Garrido-Morgado
Keyword(s):  
Brand Image ◽  
Perceived Quality ◽  
Relative Price ◽  
Private Label ◽  
National Brand ◽  
Content Type ◽  
National Brands ◽  
Loyalty Intention ◽  
Parent Brand ◽  
Grocery Products

Purpose The purpose of this study is to examine the effects of identifying suppliers on private label (PL) packaging on the perceived quality, brand image, loyalty intention and relative price of the national brands (NB) produced by dual manufacturers, considering the possible moderating effects of the images of both the NB and PL. Design/methodology/approach The study uses an experimental setting with two different categories of grocery products. Findings The empirical evidence reveals different effects of PL supplier identification, according to brand images. Research limitations/implications This paper contributes to brand extension literature on the effects on evaluations of the parent brand. It also contributes insights about the identity and identification of PL manufacturers. Practical implications This supplier identification does not affect or positively affect to the perceived quality, brand image or loyalty toward NBs with lower images, but it negatively affects those with high images, especially when the PL also has a high image and adopts a stronger price positioning. Moreover, NBs with lower images appear more expensive or do not affect when they supply PLs for retailers with high images and stronger price positioning. However, if lower image NB supply a PL with the lower image, the effects do not affect or is perceived as cheaper. Originality/value This paper extends prior knowledge about the decision to function as a dual manufacturer from the manufacturer’s perspective.

scholarly journals Quality Perceptions and Willingness-to-Pay for Imported Rice in Japan

2004 ◽  
Vol 36 (1) ◽  
pp. 123-141 ◽  
Author(s):  
Hikaru Hanawa Peterson ◽  
Kentaro Yoshida
Keyword(s):  
Food Safety ◽  
Willingness To Pay ◽  
Quality Perceptions ◽  
Retail Prices ◽  
Negative Perceptions

Attitudes of Japanese consumers toward domestic and foreign varieties of rice were analyzed on the basis of a survey. We found that the current retail prices for imported rice are higher than the average consumers' willingness-to-pay (WTP), whereas most domestic rice was priced below the average WTP. Unfamiliarity or negative perceptions of the safety and flavor of foreign rice lowered WTP substantially. The WTP for U.S. rice was limited more by negative perceptions of flavor than from concerns about food safety.

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