Measuring private labels brand equity: a consumer perspective

Abstract

PurposeThe purpose of this paper is to analyse whether private label brands (PLB) have been able to build brand equity throughout their development. Specifically, it aims to develop and test a measurement model that measures PLB brand equity across product lines.Design/methodology/approachA brand choice model is developed using a multinomial logit model and it is calibrated using a consumer panel database of two product lines of yoghurt from 8,000 Spanish households for a three‐year period.FindingsPrior research has considered PLB as the unbranded alternative to manufacturer brands. In this research empirical evidence is provided that PLB have built brand equity throughout their development and that this equity varies across the different PLB offered in the market, and across product lines.Practical implicationsThese findings offer valuable insights to retailers on how to manage PLB and to manufacturers on how to approach and compete against them.Originality/valueThe vast majority of academic research has not approached the PLB phenomenon from a branding perspective. This research constitutes a first attempt to measure brand equity on PLB. It measures PLB brand equity for each typology of PLB in the market.