When Should Private Label Brands Endorse Ethical Attributes?

Abstract

This article examines to what extent and under what circumstances product-related ethical attributes (i.e., attributes that reflect concern about social and environmental issues) influence evaluations of retailers’ private label brands (PLBs). Two experiments show that ethical attributes enhance PLB evaluations in the presence of extrinsic cues signaling high quality (i.e., high price). In the context of extrinsic cues signaling low quality (i.e., low price), PLBs do not benefit from offering an ethical attribute. This effect is mediated by consumers’ product quality perceptions. A third experiment replicates the positive effect of ethical attribute presence on PLB evaluations in the context of high retailer reputation, and shows a moderating effect of consumers’ resource synergy beliefs. These findings suggest that PLBs benefit from offering ethical attributes in the context of higher-priced PLBs or higher retailer reputation.