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Consumers’ Reactions to Price Imitations by Private Labels with Sub-branding Strategy

In: Advances in National Brand and Private Label Marketing

Author

Listed:
  • Siddhartha Sarkar

    (Tata Consultancy Services Limited)

  • Arti D. Kalro

    (Indian Institute of Technology Bombay)

  • Dinesh Sharma

    (Indian Institute of Technology Bombay)

Abstract

The influence of price similarity and dissimilarity between a private label (using a sub-brand strategy) and a national brand on consumers’ judgments of the private label’s quality and purchase intention is studied using a controlled experiment with a sample of 238 respondents. The results of this study are rather interesting in the sense that price imitation of a national brand by a private label enhances the buyers’ perception about the private label’s product quality. Inversely, price dissimilarity (higher price differences, wherein the private labels are cheaper than national brands) to a national brand enhances the purchase intention of private labels. The results are significant for two products in the consumer packaged goods category (biscuits and potato chips). Consumers’ reactions would help private label retailers arbitrate and adopt optimum price difference between national brands and private labels.

Suggested Citation

  • Siddhartha Sarkar & Arti D. Kalro & Dinesh Sharma, 2019. "Consumers’ Reactions to Price Imitations by Private Labels with Sub-branding Strategy," Springer Proceedings in Business and Economics, in: Francisco J. Martínez-López & Juan Carlos Gázquez-Abad & Anne Roggeveen (ed.), Advances in National Brand and Private Label Marketing, pages 91-98, Springer.
    • Handle: RePEc:spr:prbchp:978-3-030-18911-2_12
    DOI: 10.1007/978-3-030-18911-2_12
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