Cultural variables influence consumer demand for private-label brands

4 years ago
Anonymous $9ruWwTnhZq

https://www.sciencedaily.com/releases/2019/12/191216122413.htm

Private-label brands -- think not-so-generic store brands such as Costco's Kirkland Signature line or Target's "up & up" labeled products -- contribute significantly to retailer profits by catering to bargain-driven consumers who also value quality. But consumer attitudes toward store brands might be driven by the consumer's own social status and beliefs about societal hierarchy more generally, with results varying between products of high symbolism (sunglasses or jeans, for example) versus products of low symbolism such as bleach, according to a paper co-written by Carlos Torelli, a professor of business administration and the James F. Towey Faculty Fellow at Illinois.

"Private-label brands have been around for many years, but they've been undergoing an evolution lately," Torelli said. "In the past, they were considered and branded as generic products -- laundry detergent or dish soap that didn't have a name on the label other than what it was. Just a container with the product inside. Now we have store brands that mimic the elements, attributes and packaging of their big-name competitors but cost less."

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