Perceived Private Label Authenticity: A Two-Study Analysis

Sandra Horvat (), Tanja Komarac and Đurđana Ozretić Došen
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Sandra Horvat: University of Zagreb, Faculty of Economics & Business

Tržište/Market, 2021, vol. 33, issue SI, 47-66

Abstract: Purpose – The purpose of this paper is to explore further the dimensions of perceived private label authenticity. The aims are threefold. Firstly, to examine how consumers associate the concept of authenticity with manufacturer brands and private labels, comparing their perspectives on the perceived authenticity of manufacturer brands and private labels. secondly, to determine and verify the dimensions that would be appropriate for and specific to measuring private label authenticity. Finally, to offer a model for measuring private label authenticity and test the model empirically. Design/Methodology/Approach – Both qualitative and quantitative research methods were used. Qualitative research was conducted through six focus group interviews. A survey on a convenience sample of 415 respondents from Croatia was applied in the quantitative research phase. Confirmatory factor analysis was used to empirically test the proposed dimensions of the perceived private label authenticity model. Findings and implications – The results of qualitative research demonstrate that consumers have different views of private label authenticity compared to manufacturer brands. Consumers have positive perceptions of private labels, describing them as " a smart choice" and "good-quality products at lower prices". Still, they do not associate them with the notion of authenticity as presented in the existing models. Therefore, a new perceived private label authenticity model is proposed. The quantitative study empirically confirmed its five dimensions: credibility, originality, brand commercialization, trust in the chain, and employee passion. The new proposed model allows retailers to assess private label authenticity using dimensions that are important for private labels as a specific brand type. Additionally, it highlights the importance of trust in the retailer and employee passion as important dimensions of private label authenticity. Limitations – Limitations are related to the methods used in the studies. Participants in all six focus groups were graduate students in economics and business. The survey was done on a convenience sample of respondents. Originality – This paper sheds additional light on extant studies of the perceived brand authenticity construct in the context of private labels and manufacturer brands. Based on qualitative and quantitative research, it proposes a new model of perceived private label authenticity, comprising five dimensions: (1) credibility, (2) originality, (3) brand commercialization, (4) trust in the chain, and (5) employee passion.

Keywords: private labels; perceived authenticity; focus groups; survey; CFA; Croatia (search for similar items in EconPapers)
Date: 2021
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