Disclosing dual manufacturers on private brands: Does it change quality and image perception between national and private label brands?

Abstract

Dual manufacturers produce both their own brands and private label brands (PLs). Disclosing these manufacturers on PL packaging might exert quality and brand image effects, which could influence the perception differentials between national brands (NBs) and PLs. An experiment identifies moderating effects for these differentials, according to the NB image positioning (high and low) and the type of PL (standard and premium). For example, compared to the case when a low‐image NB manufacturer is disclosed as the supplier of a standard PL, which is our reference, we propose a decrease in the quality and brand image differentials when: (1) the high‐image NB supplies a standard PL, or (2) a low‐image NB manufacturer is disclosed as the supplier of a premium PL. Whereas we will not expect any change when a high‐image NB manufacturer is disclosed as the supplier of a premium PL. Our results partially support our expectations. [EconLit Citations: M21, M31, Q13].