The Effect of Naming Strategy and Packaging on Perceived Quality and Purchase Intention of Private Label Brands

Abstract

Over the past few years, private labels have gained larger share of grocery sales in the food retail sector. However, retail stores follow differing strategies in packaging and naming their private label brands. This study examines the effects of extrinsic cues (packaging and naming strategies) on determining consumers’ perception of private labels’ product quality and purchase intention in an experiment using a sample of 357 management students. Using observation method, the category of rice was selected for this study. Hypotheses are derived from previous literature positing the effects of these two extrinsic cues on perceived quality and purchase intentions. MANOVA results indicate that similarity in private label packaging with national brand has a significant effect on perceived quality and purchase intention. However, the effect of naming strategies is not statistically significant on perceived quality and purchase intention. The interaction effect of packaging and naming strategies, in turn, positively influences perceived quality.