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The interactive effect of power distance belief and consumers’ status on preference for national (vs. private-label) brands

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  • Wang, Jessie J.
  • Torelli, Carlos J.
  • Lalwani, Ashok K.

Abstract

Private-label brands have been offered as an alternative to national brands. Given the widespread belief that private-label brands offer good value, it is surprising that the market share of such brands has remained low in most countries. In the current research, we examine the interactive effect of power distance belief (PDB) – the acceptance and expectation of hierarchies and inequalities in society – and consumers’ status on their preference for private-label (vs. national) brands. Results revealed that in high-PDB contexts, low (vs. high) status consumers are more attracted to national brands. Interestingly, this effect emerged only for products low, compared to high, in symbolism. Furthermore, results suggest that the interactive effect of PDB and consumers’ status on brand preferences is driven by consumers’ status consumption needs.

Suggested Citation

  • Wang, Jessie J. & Torelli, Carlos J. & Lalwani, Ashok K., 2020. "The interactive effect of power distance belief and consumers’ status on preference for national (vs. private-label) brands," Journal of Business Research, Elsevier, vol. 107(C), pages 1-12.
    • Handle: RePEc:eee:jbrese:v:107:y:2020:i:c:p:1-12
    DOI: 10.1016/j.jbusres.2019.10.001
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    6. Wang, Jessie J. & Lalwani, Ashok K. & DelVecchio, Devon, 2022. "The Impact of Power Distance Belief on Consumers' Brand Preferences," International Journal of Research in Marketing, Elsevier, vol. 39(3), pages 804-823.
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    8. Maksymilian Czeczotko & Hanna Górska-Warsewicz & Robert Zaremba, 2022. "Health and Non-Health Determinants of Consumer Behavior toward Private Label Products—A Systematic Literature Review," IJERPH, MDPI, vol. 19(3), pages 1-36, February.
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    12. Huachao Gao & Yinlong Zhang, 2022. "How does power distance belief impact consumers’ responses to demotion in hierarchical loyalty programs? The dual processes of monetary and psychological losses," Journal of the Academy of Marketing Science, Springer, vol. 50(4), pages 822-840, July.
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    15. Shuchi Gupta & Nishad Nawaz & Abhishek Tripathi & Saqib Muneer & Naveed Ahmad, 2021. "Using Social Media as a Medium for CSR Communication, to Induce Consumer–Brand Relationship in the Banking Sector of a Developing Economy," Sustainability, MDPI, vol. 13(7), pages 1-16, March.
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