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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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    1. Alić Adi & Činjarević Merima & Agić Emir, 2020. "The role of brand image in consumer-brand relationships: similarities and differences between national and private label brands," Management & Marketing, Sciendo, vol. 15(1), pages 1-16, March.

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