The Influence of OEM’s Brand Type (NB vs. PB) on the Brand Attitude and Purchase Intention: Product Type as a Moderator

Abstract

This paper tested the consumer’s attitude and Purchase Intention to two brands and the moderating effect of product type. LG is a token of NB (National Brand) and E-Mart is a stimulus for PB (Private brand). But the company in charge of manufacturing in OEM contract is the same and one. Experimental design is as follows: 2 (OEM’s Brand type: NB vs. PB) x 2 (Product Type: convenience goods vs. shopping goods). 266 responses were reflected. The results of this study are as follows. First, consumer favored more NB than PB. Second, there was moderating effect of product type. In shopping goods, attitude towards NB was better than PB. But there was no difference in convenience goods. Third, the brand attitude according to OEM’s brand type had a positive effect on Purchase Intention. The results of this study suggest a strategic implication for OEM manufacturing. Generally the product quality in NB is perceived better than PB. But there is some difference according to product type. With shopping goods, consumers compare the alternatives and choose the better one, so OEM manufacturer has to choose NB as a strategic alliance partner. Whereas, in convenience goods, consumers nearly don’t feel the quality difference between NB and PB, and would rather favor the cheaper one. So OEM manufacturer had better choose anyone which can take advantage of cost leadership. Especially NB can be more influenced by the country of origin and in specialty goods. So research including COO and specialty goods is needed.