The impact of introducing organic private label products on the purchase intention of other private label and national brands products
The organic market is growing rapidly and national brands and retailers are responding to this by introducing organic products. However, little research is done on the impact of introducing an organic private label tier on different quality tiers. Drawing on the similarity effect, this research explains the impact of introducing organic private label products on the purchase intention of standard and premium private label and mainstream and premium national brand products. Using a questionnaire with experimental design, respondents are divided into three manipulation groups and were shown similar shelves that differed on the presence of an organic private label product and its position on the shelf. Results show that introducing an organic private label tier has a cannibalizing impact on the purchase intention of mainstream national brand and standard private label products. Based on these findings, it appears that organic private label products are comparable to mid-quality products instead of high-quality as was found in earlier research. Both health and quality consciousness appear to have a direct effect on the purchase intention of different product tiers instead of a moderating effect via organic private label products. Interestingly, the impact of the shelf position of organic private label products is negligible.
Faculteit der Managementwetenschappen