The roles of identity and brand equity in organic consumption behavior: Private label brands versus national brands

Abstract

Organic brands have become increasingly important as an offering by which retailers can differentiate themselves. The current study examines the role of two key drivers (i.e., brand equity and social identification) in the consumption of organic private label brands (PLBs) and the extent to which this role differs compared to organic national brands (NBs). Using a longitudinal panel study among consumers in Australia, Canada, Germany, the Netherlands, and the US, we tested both mediating and moderating effects of brand equity, brand identification, and organic consumer identification on organic brand consumption and on organic consumption behavior in general. The results show that for both PLBs and NBs, brand equity positively influences organic brand consumption and organic consumption behavior. For PLBs, brand identification is related to organic brand consumption as well as organic consumption behavior. In contrast, for NBs, organic consumer identification influences organic brand consumption and organic consumption behavior, which suggests a difference in identity salience for both types of brands. In addition, we found that the relationship between brand equity and organic brand consumption is partially mediated by brand identification, which implies that consumers are more likely to identify with brands that have higher brand equity. Marketing implications are discussed.