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Expert quality evaluation and price of store vs. manufacturer brands: An analysis of the Spanish mass market

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  • Méndez, José Luis
  • Oubiña, Javier
  • Rubio, Natalia

Abstract

This study compares manufacturer and store brands in terms of their objective quality as well as their price differentials for products in the food and drink, personal hygiene and home cleaning markets over the period 1989–2004. The results of descriptive and multivariate techniques suggest a positive evolution in the quality of store brands. We do not find differences in objective quality between manufacturer and store brands. But we do discern differences in the objective quality of store brands with respect to national and local manufacturer brands for a limited range of product categories. Specifically, quality is significantly higher for manufacturer brands (especially national ones) in technologically more complex categories. With regard to price, the differences favor store brands. Approval of a store's own brand is higher when the average prices for the category are lower. Furthermore, higher price differentials do not always increase the market share of a store brand. These findings have interesting implications for manufacturers and retailers in the management of their brand portfolio.

Suggested Citation

  • Méndez, José Luis & Oubiña, Javier & Rubio, Natalia, 2008. "Expert quality evaluation and price of store vs. manufacturer brands: An analysis of the Spanish mass market," Journal of Retailing and Consumer Services, Elsevier, vol. 15(3), pages 144-155.
    • Handle: RePEc:eee:joreco:v:15:y:2008:i:3:p:144-155
    DOI: 10.1016/j.jretconser.2007.11.003
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    4. Boyle, Peter J. & Lathrop, E. Scott, 2013. "The value of private label brands to U.S. consumers: An objective and subjective assessment," Journal of Retailing and Consumer Services, Elsevier, vol. 20(1), pages 80-86.
    5. Óscar González-Benito & Mercedes Martos-Partal, 2014. "Price sensitivity versus perceived quality: moderating effects of retailer positioning on private label consumption," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 15(5), pages 935-950, November.
    6. Olbrich, Rainer & Jansen, Hans Christian & Hundt, Michael, 2017. "Effects of pricing strategies and product quality on private label and national brand performance," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 294-301.
    7. Rossi, Patricia & Borges, Adilson & Bakpayev, Marat, 2015. "Private labels versus national brands: The effects of branding on sensory perceptions and purchase intentions," Journal of Retailing and Consumer Services, Elsevier, vol. 27(C), pages 74-79.
    8. Andreas Niedermeier & Agnes Emberger‐Klein & Klaus Menrad, 2021. "Which factors distinguish the different consumer segments of green fast‐moving consumer goods in Germany?," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 1823-1838, May.
    9. Rainer Olbrich & Michael Hundt & Hans Christian Jansen, 2016. "Proliferation of Private Labels in Food Retailing: A Literature Overview," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 8(6), pages 63-76, December.
    10. Mhd Ruslan, Siti Marsila & Mokhtar, Kasypi, 2020. "An Analysis of Price Disparity: Peninsular Malaysia and Sabah," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 54(2), pages 53-66.
    11. Abril, Carmen & Sanchez, Joaquin, 2016. "Will they return? Getting private label consumers to come back: Price, promotion, and new product effects," Journal of Retailing and Consumer Services, Elsevier, vol. 31(C), pages 109-116.
    12. Shin, Hyunju & Parker, Janna, 2017. "Exploring the elements of consumer nostalgia in retailing: Evidence from a content analysis of retailer collages," Journal of Retailing and Consumer Services, Elsevier, vol. 35(C), pages 1-11.

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