Identifying a private-label supplier on national brand

Abstract

Purpose The purpose of this study is to examine the effects of identifying suppliers on private label (PL) packaging on the perceived quality, brand image, loyalty intention and relative price of the national brands (NB) produced by dual manufacturers, considering the possible moderating effects of the images of both the NB and PL. Design/methodology/approach The study uses an experimental setting with two different categories of grocery products. Findings The empirical evidence reveals different effects of PL supplier identification, according to brand images. Research limitations/implications This paper contributes to brand extension literature on the effects on evaluations of the parent brand. It also contributes insights about the identity and identification of PL manufacturers. Practical implications This supplier identification does not affect or positively affect to the perceived quality, brand image or loyalty toward NBs with lower images, but it negatively affects those with high images, especially when the PL also has a high image and adopts a stronger price positioning. Moreover, NBs with lower images appear more expensive or do not affect when they supply PLs for retailers with high images and stronger price positioning. However, if lower image NB supply a PL with the lower image, the effects do not affect or is perceived as cheaper. Originality/value This paper extends prior knowledge about the decision to function as a dual manufacturer from the manufacturer’s perspective.