INTRODUCTION
Private label brands, also commonly referred to as “own
brands” or “store brands”, consist of merchandise produced
and sold by a specific retailer or chain of retail stores (Kumar
and Steenkamp, 2007). These brands are often thought of as
being of inferior quality to mainstream (i.e. national) brands.
However, research by Verhoef et al. (2002) suggests that
opinions are changing and that private labels are becoming
more acceptable to many consumers. The growth of private
labels has also been accentuated by the rise in power of
retailers, who are increasingly pushing this agenda (Nirmalya,
2007). In due course, retailers are being empowered to extract
higher profit margins, develop customer loyalty and to
increase bargaining power over manufacturers (Batra and
Sinha, 2000).
INTRODUCTIONPrivate label brands, also commonly referred to as “ownbrands” or “store brands”, consist of merchandise producedand sold by a specific retailer or chain of retail stores (Kumarand Steenkamp, 2007). These brands are often thought of asbeing of inferior quality to mainstream (i.e. national) brands.However, research by Verhoef et al. (2002) suggests thatopinions are changing and that private labels are becomingmore acceptable to many consumers. The growth of privatelabels has also been accentuated by the rise in power ofretailers, who are increasingly pushing this agenda (Nirmalya,2007). In due course, retailers are being empowered to extracthigher profit margins, develop customer loyalty and toincrease bargaining power over manufacturers (Batra andSinha, 2000).
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