The real difference between consumers' perceptions of private labels and national brands
Date
2014
Authors
Nenycz Thiel, M.
Romaniuk, J.
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Journal article
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Journal of Consumer Behaviour, 2014; 13(4):262-269
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Abstract
This paper documents the application of prior knowledge about response patterns in brand image data for private label (PL) brands.We investigate if a well-known pattern about response level and usage experience also holds for PLs. The main finding is that advertised national brands (NBs) enjoy a higher level of knowledge amongst their non-users than do PLs. We did not find this to be the case for small non-advertised NBs and small PLs. The finding emphasises the importance of advertising for NBs to maintain their position. Well-branded and appropriately scheduled advertising leads to building up brand associations in consumers' memory, which increases the probability of thinking about or noticing a brand. We suggest that the higher knowledge among NB non-users is the main advantage NBs have over PLs in the market.We provide implications of the findings for managers and academia.
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Copyright 2014 John Wiley & Sons