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Understanding premium private labels: A consumer categorisation approach

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  • Nenycz-Thiel, Magda
  • Romaniuk, Jenni

Abstract

Worldwide premium private labels (PPLs) are a new and rapidly growing phenomenon. However to date, little is known about consumers' perceptions of these newer entrants relative to other brand types. Therefore it is difficult for marketers to understand the opportunities and threats created by this new generation of brands. This study examines the ways in which consumers categorise PPLs compared to more traditional value private labels (VPLs) and national brands (NBs) on the three dimensions of quality, value for money and trust. The data includes seven packaged goods categories in three countries, the United States, the United Kingdom, and Australia. The findings show that PPLs sit on a separate island, in between VPLs and NBs in consumer memory. While consumers generally view PPLs as a separate subgroup of brands, PPL are connected to other subgroups in that they are perceived to have the value characteristics of VPLs but quality characteristics of NBs. Finally, consumers with past experience with VPLs have a stronger ability to categorise PLs into distinct brand tiers.

Suggested Citation

  • Nenycz-Thiel, Magda & Romaniuk, Jenni, 2016. "Understanding premium private labels: A consumer categorisation approach," Journal of Retailing and Consumer Services, Elsevier, vol. 29(C), pages 22-30.
    • Handle: RePEc:eee:joreco:v:29:y:2016:i:c:p:22-30
    DOI: 10.1016/j.jretconser.2015.10.008
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    2. Maksymilian Czeczotko & Hanna Górska-Warsewicz & Wacław Laskowski & Barbara Rostecka, 2021. "Towards Sustainable Private Labels in an Autonomous Community during COVID-19—Analysis of Consumer Behavior and Perception on the Example of Tenerife," Sustainability, MDPI, vol. 13(13), pages 1-22, July.
    3. Bhat Ishfaq Hussain & Singh Sapna, 2018. "Examining the moderating effect of shopping value on private-label and loyalty in Indian grocery stores," Management & Marketing, Sciendo, vol. 13(1), pages 748-760, March.
    4. Konuk, Faruk Anıl, 2020. "Trust transfer from manufacturer to private label brand: The moderating role of grocery store format," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).
    5. Assarzadegan, Parisa & Hejazi, Seyed Reza & Raissi, Gholam Ali, 2020. "An evolutionary game theoretic model for analyzing retailers’ behavior when introducing economy and premium private labels," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).
    6. Fornari, Edoardo & Fornari, Daniele & Grandi, Sebastiano & Iuffmann Ghezzi, Alessandro & Menegatti, Mario, 2021. "Taking advantage of the gluten-free opportunity: Assortment as the key driver for modern grocery retailers," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).
    7. Keller, Kristopher O. & Dekimpe, Marnik G. & Geyskens, Inge, 2022. "Adding budget and premium private labels to standard private labels: Established empirical generalizations, emerging empirical insights, and future research," Journal of Retailing, Elsevier, vol. 98(1), pages 5-23.
    8. Offergeld, Tobias & Martinez, Luis F. & Ferreira, Aristides I., 2020. "A train of thought in product experientiality: Working memory, distraction, and inconsistencies in cue order effects," Journal of Retailing and Consumer Services, Elsevier, vol. 53(C).
    9. Domenico Morrone & Rosamartina Schena, 2018. "The Influence of “Euro-Leaf” Logo on Consumers’ Choices: The Italian Case of Branded and Private Label Food Products," International Journal of Business and Management, Canadian Center of Science and Education, vol. 13(3), pages 134-134, February.
    10. Cheng, Rong & Duan, Yongrui & Zhang, Jianguang & Ke, Hua, 2021. "Impacts of store-brand introduction on a multiple-echelon supply chain," European Journal of Operational Research, Elsevier, vol. 292(2), pages 652-662.
    11. Pérez-Santamaría, Samanta & Martos-Partal, Mercedes, 2021. "Analyzing the effects of private-label supplier disclosure on retailer image," Journal of Retailing and Consumer Services, Elsevier, vol. 62(C).
    12. Hanna Górska-Warsewicz & Sylwia Żakowska-Biemans & Maksymilian Czeczotko & Monika Świątkowska & Dagmara Stangierska & Ewa Świstak & Agnieszka Bobola & Julita Szlachciuk & Karol Krajewski, 2018. "Organic Private Labels as Sources of Competitive Advantage—The Case of International Retailers Operating on the Polish Market," Sustainability, MDPI, vol. 10(7), pages 1-28, July.
    13. 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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