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The nature and incidence of private label rejection

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  • Nenycz-Thiel, Magda
  • Romaniuk, Jenni

Abstract

This paper examines the incidence of consumers’ rejection of private labels (PLs) of different price-quality tiers and the underlying reasons for this rejection. The rejection of PLs is compared to the rejection of national brands (NBs) in five food product categories across the UK and Australia. The findings indicate that only 8% of PL non-users in the UK market, and 20% in the Australian market, actively reject PLs. This rejection incidence is higher for PLs than for NBs in three of the five categories. The reasons for brand rejection differ between PLs and NBs. PLs are rejected due to a perception of low quality inferred from extrinsic product cues. In contrast, NBs are rejected primarily because of a negative past experience with a brand. The findings highlight the importance of extrinsic cues for PLs to minimise the incidence of consumer rejection. The generally low rejection of PLs implies that PLs are a real threat to NBs. This paper extends the rejection literature to PLs and quantifies the rejection levels and reasons.

Suggested Citation

  • Nenycz-Thiel, Magda & Romaniuk, Jenni, 2011. "The nature and incidence of private label rejection," Australasian marketing journal, Elsevier, vol. 19(2), pages 93-99.
    • Handle: RePEc:eee:aumajo:v:19:y:2011:i:2:p:93-99
    DOI: 10.1016/j.ausmj.2011.02.001
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    Cited by:

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    3. Chimhundu, Ranga & McNeill, Lisa S. & Hamlin, Robert P., 2015. "Manufacturer and retailer brands: Is strategic coexistence the norm?," Australasian marketing journal, Elsevier, vol. 23(1), pages 49-60.
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    6. Nenycz-Thiel, Magda & Romaniuk, Jenni, 2012. "Value-for-money perceptions of supermarket and private labels," Australasian marketing journal, Elsevier, vol. 20(2), pages 171-177.
    7. Rainer Olbrich & Hans Christian Jansen & Benedikt Teller, 2016. "Quantifying Anti-Consumption of Private Labels and National Brands: Impacts of Poor Test Ratings on Consumer Purchases," Journal of Consumer Affairs, Wiley Blackwell, vol. 50(1), pages 145-165, March.
    8. Vitally Cherenkov & Marina Sheresheva & Sergey Starov & Igor Gladkikh & Alexander Tanichev & Svetlana Berezka & Svetlana Berezka & Igor Savelev & Anastasia Yussuf, 2020. "Sustainability trends and consumer perceived risks towards private labels," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(1), pages 347-362, September.
    9. Monika Kavaliauske & Edita Simanaviciute, 2015. "Brand Avoidance: Relations Between Brand-Related Stimuli And Negative Emotions," Organizations and Markets in Emerging Economies, Faculty of Economics, Vilnius University, vol. 6(1).

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