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Private label brands : the effect of brand name strategy on perceived quality

Dragåsøien, Mia Marie Stene
Master thesis
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http://hdl.handle.net/11250/2432692
Issue date
2016
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  • Master Thesis [2971]
Abstract
The objective of this study has been to examine if brand name strategy influences the

perceived quality of private label grocery brands. The brand name strategy details how the

private label brand name is connected to the retailer brand, and the purpose is to understand

if the choice of phantom, chain or chain endorsed brand names for private label brands has

an effect on quality evaluations. The study has also examined if retailer image, private label

brand proneness and private label brand knowledge influences this relationship.

This study has examined private label brands in the Norwegian grocery market. Private label

brands have evolved from no-frill generics to brands in their own right, with retailers now

offering private labels that equal or surpass national brands in terms of quality and value.

Previous research on private labels and quality has not examined the effect of a specific

brand name, and this study therefore contributes to the research literature. The analysis is

based on data collected by an online questionnaire, with a sample of 333 students at the

Norwegian School of Economics.

The overall findings of this study indicate that there is a relationship between the brand name

strategy and the perceived quality of the private label brand product. The findings show that

phantom private label brands receive the highest quality evaluations. This suggests that a

close connection between private label brand and the retailer brand does not benefit

Norwegian private label brand retailers. Retailer image and private label brand knowledge

did not result in significant differences in perceived quality.

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