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

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.