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The nature and incidence of private label rejection

Magda Nenycz-Thiel and Jenni Romaniuk

Australasian marketing journal, 2011, vol. 19, issue 2, 93-99

Abstract: This paper examines the incidence of consumers’ rejection of private labels (PLs) of different price-quality tiers and the underlying reasons for this rejection. The rejection of PLs is compared to the rejection of national brands (NBs) in five food product categories across the UK and Australia. The findings indicate that only 8% of PL non-users in the UK market, and 20% in the Australian market, actively reject PLs. This rejection incidence is higher for PLs than for NBs in three of the five categories. The reasons for brand rejection differ between PLs and NBs. PLs are rejected due to a perception of low quality inferred from extrinsic product cues. In contrast, NBs are rejected primarily because of a negative past experience with a brand. The findings highlight the importance of extrinsic cues for PLs to minimise the incidence of consumer rejection. The generally low rejection of PLs implies that PLs are a real threat to NBs. This paper extends the rejection literature to PLs and quantifies the rejection levels and reasons.

Keywords: Private labels; Brand rejection; Premium private labels (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:aumajo:v:19:y:2011:i:2:p:93-99

DOI: 10.1016/j.ausmj.2011.02.001

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