How can an organic label help a private label?

Abstract

Purpose This paper aim to investigate how organic labeling impacts perceived value for money (PVFM) as well as attitudinal and behavioral brand loyalty for private label brands (PLBs). This impact is tested for different product categories and retailers. Design/methodology/approach Two online experiments are conducted with different product categories (i.e. eggs and chocolate) and different retailers (i.e. Auchan and Carrefour). For each experiment, a multivariate analysis of covariance with brand type (i.e. PLBs and organic PLBs) as the independent variables, the PVFM and brand loyalty as the dependent variables as well as consumers’ characteristics, involvement with organic products and attitudes toward the retailer as the covariates is run. Findings On aggregate, organic PLBs prompt a higher PVFM as well as a higher attitudinal and behavioral loyalty than the PLBs. These results are consistent across the above-mentioned product categories and retailers. Research limitations/implications This study advances knowledge on organic labeling for the PLBs. Practical implications Retailers gain insights on the perceptions and behaviors toward organic PLBs versus standard PLBs. Originality/value This study tests how an organic label impacts the PVFM and brand loyalty for the PLBs.