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The value of private label brands to U.S. consumers: An objective and subjective assessment

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  • Boyle, Peter J.
  • Lathrop, E. Scott

Abstract

This study investigates the value of private label brands to consumers using two approaches: First, subjective evaluations of the perceived relationships between price and quality for private label (PL) brand and national brand (NB) products based on survey responses; and second, objective measures of price and quality for PLs and NBs widely available in the U.S. Price was generally perceived to be a signal of quality for NBs, but not for PLs, an indication that consumers' knowledge may not have kept pace with quality improvement in PLs. Objective estimation of the quality gap potentially existing between PLs and NBs determined that the “quality premium†of NBs observed in the past has largely disappeared. Consumers, notwithstanding, sought a lower purchase price for PLs. In turn, the higher price they were willing to pay for NBs accorded with estimates of the actual “price premium†associated with NBs.

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  • 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.
    • Handle: RePEc:eee:joreco:v:20:y:2013:i:1:p:80-86
    DOI: 10.1016/j.jretconser.2012.10.008
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    2. Larson, Ronald B., 2016. "Profiling Private-Label Avoiders," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235823, Agricultural and Applied Economics Association.
    3. Hoskins, Jake D., 2016. "Offering value and capturing surplus: A strategy for private label sales in a new customer loyalty building scenario," Journal of Retailing and Consumer Services, Elsevier, vol. 28(C), pages 274-280.
    4. 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.
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    7. Paul W. Dobson & Ratula Chakraborty, 2014. "How Do National Brands And Store Brands Compete?," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2014-07, Centre for Competition Policy, University of East Anglia, Norwich, UK..
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