INVESTIGATING THE INFLUENCE OF FAMILIARITY AND QUALITY-LEVEL SPILLOVERS ON CONSUMER PURCHASE INTENTIONS OF ORGANIC PRIVATE LABELS IN HEDONIC AND UTILITARIAN CATEGORIES
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2023-07-04
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en
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The organic market is growing rapidly as both retailers and national brands expand their portfolios with organic tiers. However, little is known about the relationship between these brands. Drawing on the spillover effect, this research explains the influence of familiarity and quality-level spillovers of standard private labels, premium private labels, and organic national brands on the purchase intention of organic private labels, and how this differs for utilitarian and hedonic products. Data is gathered by using a questionnaire with experimental design as participants are divided into three manipulation groups and answer questions on one of the three types of labels (standard private label, premium private label, organic national brand). Results show that the purchase intention of organic private labels is influenced by the familiarity and quality-level spillovers of similar products. Specifically, the quality-level spillover is stronger for both standard private labels and organic national brands, when compared to premium private labels. Besides, this effect is even stronger for utilitarian products than for hedonic products. These results indicate that standard and organic private labels are more similar in perceived quality than prior research suggests, and that sharing the organic characteristic result in higher quality-level spillovers than sharing the same brand type. Eventually, these findings can be used as guidance for marketers to adjust their marketing strategies.
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Faculteit der Managementwetenschappen