Two-tier store brands: The benefic impact of a value brand on perceptions of a premium brand

Mauricio Palmeira, Dominic Thomas

Research output: Contribution to journalArticleResearchpeer-review

42 Citations (Scopus)

Abstract

A recent trend in the retail industry is the emergence of multi-tier store brands. In the current article, we contrast consumersa?? expectations in a retailing context in which a single store brand is present to one in which two store brands are offered in the same category. We propose that when a retailer offers a single store brand, consumers expect it to be of lower quality even when it is described as a premium brand. On the other hand, quality perception of a premium store brand increases in the presence of a value store brand. Importantly, quality perceptions of a value store brand are not affected by the presence of a premium store brand. In two studies we find support for our hypotheses showing the benefic impact of a value store brand on quality perceptions of a premium store brand.
Original languageEnglish
Pages (from-to)540 - 548
Number of pages9
JournalJournal of Retailing
Volume87
Issue number4
DOIs
Publication statusPublished - 2011

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