Organic private labels: Cannibalisation or expansion? The effect of pricing and brand name strategies of organic private labels on the purchase intention of market incumbent private labels and national brands
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2023-07-04
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en
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In response to the growing organic market, an increasing number of retailers are introducing a new private label tier: organic private labels. However, little research has been conducted on how organic private labels impact the market incumbent private labels and national brands. Drawing on the compromise and similarity effects, this research studies the impact of price and brand name strategies of organic private labels on the purchase intention of premium private labels, premium-quality national brands, and organic national brands. To do so, an online questionnaire was conducted among 154 respondents who were divided into four manipulation groups. Respondents were shown supermarket shelves with a fictional organic private label product that varied in price and brand name, as well as an existing premium private label, premium-quality national brand, and organic national brand. Consequently, their purchase intention of the products shown were measured. Multiple regression analyses revealed that price and brand name strategies do not affect the purchase intention of marketing incumbents. However, a number of control variable were found to affect the purchase intention of the marketing incumbents. Familiarity with the premium private label brand name and involvement with the product group had a negative effect on the purchase intention of the premium private label, whereas age had a positive effect. Additionally, negative effects on the purchase intention of the organic national brand were found for involvement with organic products, familiarity with the organic private label brand name, involvement with the product group, and gender. Positive effects on the purchase intention of the organic national brand were found for the familiarity with the premium private label brand name and familiarity with the premium-quality national brand. Further research on these variables and relevant others, in similar and different contexts should yield more detailed information on the varying implications of the presence of an organic private label on market incumbents.
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Faculteit der Managementwetenschappen