Private Labels and Consumer Benefits: the Brazilian Experience

Suzana de M. Fontenelle, University of Houston/EAESP-FGV
Ines Pereira, EAESP-FGV
ABSTRACT - Grocery products commercialized under private labels provide benefits to consumers in more developed countries. With the emergence of private labels in supermarkets, consumers can buy, essentially, good quality products at prices that are lower than the prices charged by the leading brands. These benefits are particularly relevant when considering less developed countries where consumers with lower levels of income, generally, comprise the majority of the population.
[ to cite ]:
Suzana de M. Fontenelle and Ines Pereira (1996) ,"Private Labels and Consumer Benefits: the Brazilian Experience", in NA - Advances in Consumer Research Volume 23, eds. Kim P. Corfman and John G. Lynch Jr., Provo, UT : Association for Consumer Research, Pages: 97-103.

Advances in Consumer Research Volume 23, 1996      Pages 97-103

PRIVATE LABELS AND CONSUMER BENEFITS: THE BRAZILIAN EXPERIENCE

Suzana de M. Fontenelle, University of Houston/EAESP-FGV

Ines Pereira, EAESP-FGV

ABSTRACT -

Grocery products commercialized under private labels provide benefits to consumers in more developed countries. With the emergence of private labels in supermarkets, consumers can buy, essentially, good quality products at prices that are lower than the prices charged by the leading brands. These benefits are particularly relevant when considering less developed countries where consumers with lower levels of income, generally, comprise the majority of the population.

The purpose of this paper is to examine whether the benefits derived from the purchase of private labels in more developed countries can be extended to the context of less developed countries.

A historic overview of the evolution of private labels in Brazilian supermarkets is presented and an exploratory study is conducted with Brazilian supermarket managers. Research propositions are examined and directions for future research are suggested.

INTRODUCTION

The growth of the food retailing industry has been sustained by its expansion into international markets and private labels (PLs) have increasingly become an important part of retailers' growth strategy. Private labels share of food retailers' sales is rising steadily in supermarket chains across Europe. In the United States, the share of private label products' in the total supermarket sales of packaged groceries have increased from 15.3% in 1988 to 19.7% in 1993 (The Economist 1995, Retailing Survey p. 11). However, little is known about the evolution of PLs in less developed countries (Pereira 1991).

Research has shown that, in general, the quality of the products commercialized under PLs is equivalent to the quality of products commercialized with the manufacturers' brands (MBs). Although PL products are similar to the goods commercialized with MBs, they are, commonly, sold at lower prices (Richardson, Dick, and Jain 1994; Swan 1974). Thus, PI-s provide benefits to consumers, who can buy, essentially, the same products at lower prices. These benefits are particularly relevant when considering less developed countries (LDCs), where low income segments, generally, comprise the majority of the population.

PLs studies on the evolution of PLs have indicated that, historically, the emergence of PLs coincide with the attainment of higher levels of economic concentration in the retail sector (Borden 1967; Chernatony 1989; McGoldrick 1987). Work by the Boston Consulting Group shows that the share of PLs in overall food sales is directly proportional to market concentration (The Economist 1995). Other studies have examined the characteristics of the marketing mix for PLs, and their consumers' profiles, mainly, in the United States and in the UK (Jain 1985, Stern 1970 and Shawn 1974).

How have PLs evolved in less developed countries? Has the evolution of PLs in LDCs departed from the experience of their European and American counterparts? Have consumers in LDC's benefitted from the lower prices offered by PLs?

The purpose of this paper is to address these research questions in the context of Brazilian supermarkets. The paper is organized as follows: first, a literature review on the evolution of PLs in more developed countries is presented (specifically, the evolution of PLs in the United States and in the UK). Next, research propositions are presented. The research propositions are examined in the following fashion: (a) the presentation of a historic overview of the evolution of PLs in Brazilian supermarkets; (b) in depth interviews with supermarket managers. Results are presented and directions for future research are suggested.

As the largest economy is Latin America and an important member of Mercosul [Mercosul is the recently created common market comprising of Argentina, Brazil, Paraguay and Uruguay.], Brazil is a priority for American and European investments (Smith and Hinchberger 1994). The peculiarities in the evolution of retailing systems in LDCs have received insufficient attention in the literature (Jain 1985). This exploratory study about the Brazilian experience may contribute to reduce this gap in the consumer behavior literature.

LITERATURE REVIEW

Private Labels and Retail Economic Concentration

The evolution of PLs needs to be examined in the context of the power relationships in the food retailing industry. PLs evolved as a result of a more balanced relationship between manufacturers and retailers. Over the years, power shifted into the hands of retailers at the expense of manufacturers' clout.

With the rise of national advertising, manufacturers' brands (MBs) became widely recognized by consumers who elected their preferred brands and became loyal to them. Over time, manufacturers could exercise greater influence over the final demand for their products and secured a better bargaining position when dealing with retailers (Grant 1987). Retailers saw their margins drastically reduced, and their power to determine the prices to consumers depreciated (Borden 1967).

In the food retailing industry, supermarket chains were no longer able to compete, solely, on the basis of price. A way found by retailers to beat competition was through the establishment of PLs (Chernatony 1989).

PLs constitute an example of how supermarket chains started to incorporate functions traditionally held by manufacturers, such as: product distribution, packaging, advertising, and product development (PLs). PLs enable supermarket chains to face manufacturers' dominance over the final demand for products (Grant 1987). The two main advantages derived from the adoption of PL:s by retailers are: bigger margins, and increased store loyalty.

The evolution of PLs parallels greater levels of concentration in the food retailing industry. In the UK where the food retailing industry is highly concentrated [The top five food retailers in Britain have 60% of market participation (The Economist, 1995).], it is estimated that the market share of PLs in 1965 was 10%; 26% in 1985, and 30% in 1995 (Chernatony 1989; The Economist 1995).

Evolution models of channels of distribution in the marketing literature suggest that trends observed in more developed countries (MDCs) will be repeated in other areas in earlier stages of economic development. The underlying premise of these models is that the marketing systems observed in MDCs provide a model for low income countries to emulate (Findlay and Paddison 1990). The rise of PLs in less developed countries would, then, mirror the evolution pattern of PLs in more developed countries.

The Marketing Mix of Private Labels

The quality of the products commercialized under PI-s tends to be perceived by consumers as similar to the quality of products commercialized under MBs. (McGoldrick 1985). According to Chernatony (1989), PU have increased in quality in the last twenty years because retailers, looking to increase store loyalty and the attractiveness of their stores have been working with producers and making sure of the quality of the products (Shutte and Cook 1966). However, better quality has not translated into higher prices.

PLs are usually described in the literature as cheaper than their comparable MBs, with price differences ranging from 10% to 30% (Gelb 1980, Bond 1984, Bellizzi 1981). PLs lower prices ran be sustained because: (a) retailers pay lower prices to producers [Producers are able to charge lower prices to retailers because they utilize the firm's idle capacity in the production directed to PLs, and therefore, do not incur in additional costs of production.]; (b) the increasing concentration of the food retailing industry enabled retailers to buy in large quantities and to bargain for better deals with producers (McGoldrick 1985 and Mason 1968); (c) the promotion of PLs tend to be less costly than the promotion of MBs and promotions of PLs tend to concentrate in store displays and in greater shelf space for PU (Chernatony 1989).

The distribution of PLs is regarded as advantageous to retailers because: (a) supermarket chains are able to purchase the products at lower prices than the ones charged for comparable products commercialized under MBs; (b) PLs have lower costs of distribution compared to MBs; (c) profit margins are higher; (c) PLs attract customers to the store because they offer quality products at competitive prices (Uncles and Ellis 1989).

The Consumer of PLs

Research on the profile of PL consumers has presented 'level of income' as negatively related to the purchase of PLs. Conversely, 'level of education' has been positively associated with the purchase of PLs. Research has also pointed to the importance of 'price' for PL consumers and their store loyalty (for a summary of these studies see Table 1). The brief overview presented here on the growth of PLs and their basic characteristics fosters the conclusion that the emergence of PLs can be best understood as a result of, basically, three factors: (1) the concentration of the food retailing industry over the years promoted a shift in the power relationships between retailers and manufacturers which, in turn facilitated the appearance of PLs; (2) the ability of retailers to offer quality products at lower prices (3) price as a determinant for consumer brand choice, and consumers' loyalty to stores that are able to offer quality products at lower prices under their own PLs.

The following propositions reflect these conjectures:

P1: PLs emerge as a result of high levels of concentration in the food retailing sector in more developed countries (MDCs). Economic concentration combined with the modernization of the food retailing sector enable food retailers to face the competition from MBs. These characteristics of the evolution of PU are expected to hold in the context of LDCs.

P2: In MDCs, the products commercialized under PLs have lower prices but equivalent quality standards relative to their MBs counterparts. PLs are also characterized by lower distribution costs and low promotion costs. These characteristics of PLs are expected to hold in the context of LDCs.

P3: In MDCs, consumers of PLs are price sensitive, educated, and with lower levels of income. Consumers of PLs in LDCs are expected to have the same profile.

P4: Given that PLs offer quality products at lower prices, PLs provide benefits to consumers, who can buy,essentially, the same products at lower prices. These benefits are particularly relevant to consumers in developed countries (LDCs), where low income segments, generally, make up the majority of the population.

In order to investigate the first research proposition a historic overview of the development of the food retailing industry in Brazil is presented. In order to examine the remaining propositions, the results of an exploratory research, conducted with supermarket professionals, are presented.

Food Retailing and Supermarkets in Brazil

When supermarkets first appeared in Brazil in the mid fifties, the Brazilian economy was characterized by increasing industrial and urban development. Supermarkets were located in highly populated areas and catered to consumer segments with upper levels of income (Cyrillo 1987).

In its first years, supermarkets had a very modest contribution to retail sales in general. According to Cyrillo (1987) several factors contributed to this state of affairs: (a) supermarkets were not officially recognized and no special credit lines were available for investments in this sector; (b)other retailers did not view supermarkets as an interesting investment opportunity; (c) consumer buying habits were attuned with small independent stores (mom-and-pop stores, for example); (d) small independent stores had cost advantages due to lower rental costs, and lower maintenance and equipment costs; (e) until 1968, retailers were required to pay the IVC (Tax over sales and consignments) and constant increases in the IVC had stimulated tax evasion, a practice that could not be followed by supermarkets where payment was mechanically registered during the act of purchase and in the presence of the consumer; (e) the cost advantages derived from a decrease in labor costs in American supermarkets, were not observed in the Brazilian context which was characterized by a large labor supply at low wages.

Thus, supermarkets did not offer low prices to consumers and, consequently, did not obtain neither large sales volumes, nor high turnovers. Therefore, they did not have the necessary conditions to order large quantities from suppliers and to bargain for discounts.

Between 1968-1973 Brazil experienced a period of tremendous economic expansion, which came to be called 'The Brazilian miracle'. Income redistribution favored certain middle class consumer segments which stimulated growth in the retail sector. It was during this period that supermarkets began to offer more sophisticated services and personalized products to cater to the upper middle/upper segments.

Supermarkets were favored by tax legislation which substituted the IVC [Tax over sales and consignments] by the ICM (Tax over the circulation of goods), which was levied only over the added value of each stage of the commercialization process. With the ICM the operations over the transfer of goods within one same firm were no longer taxed, which decreased supermarket costs and increased their competitiveness.

TABLE 1

THE CONSUMER OF PRIVATE LABELS--A SUMMARY OF THE LITERATURE

Another incentive to the supermarket industry was the creation of credit lines for supermarkets, in 1971. However, only large firms had access to credit due to the strict credit requirements. segments, which constituted the patronage of supermarkets at that According to Cyrillo (1987) this was a deliberate governmental time. Consumers with higher levels of income became the main policy to stimulate the concentration of the food retailing industry beneficiaries of the lower prices offered by supermarkets (see Table as an attempt to increase its efficiency.

In fact, the growth of supermarket chains, encouraged by the government, facilitated the purchase of larger volumes, which in turn, had positive effects on the efficiency of the industry: on one hand, it diluted the fixed costs into a greater volume of operations, and on the other, it increased the bargaining power of the chains with suppliers. Only then supermarkets were able to start offering competitive prices.

The level of concentration of the food retailing industry in the 70's is illustrated in Table 2. The share of the 'modem' sector of the food retailing industry (represented by supermarkets) in the overall sales of the sector, jumped from 29.3% in 1970 to 70.5% in 1978.

However, the gains in efficiency enjoyed by supermarkets in the seventies were translated into benefits to the higher income segments, which constituted the patronage of supermarkets at that time. Consumers with higher levels of income became the main beneficiaries of the lower prices offered by supermarkets (see Table 3).

Private Labels in Brazilian Supermarkets

Private labels first appeared in Brazil in the 70's. The supermarket chain 'Pao de Acucar' was the pioneer in the introduction of private labels back in 1971. The chain introduced several private labels, none of them carrying the name of the store. In 1989, 'Pao de Acucar' had 22 (different) private labels and began to reduce this number, and ended up keeping only four.

Several chains followed 'Pao de Acucar's' path and created their private labels. For example, the 'Eldorado' chain started in the mid seventies and commercializes 28 items with 3 brands associated with the store name. Other chains also commercialize products under private labels: 'Paes Mendonca' (1974), 'Disco' (1977), 'Bompreqo' (1978), and others.

The historic overview, presented above, illustrates the context in which the appearance of private labels in Brazilian supermarkets took place. In summary: the emergence of private labels in

TABLE 2

THE SHARE OF RETAILERS ACCORDING TO NUMBER OF STORES (NS) AND SALES (S)

TABLE 3

CONSUMER BUYING HABITS ACCORDING TO INCOME LEVELS

(SAO PAULO, 1973)

Brazilian supermarkets coincides with the increasing level of concentration within the food retailing industry and increasing competition, as it is suggested in the first research proposition (Pl).

An exploratory study was conducted to investigate the remaining research propositions. The methodology used in the exploratory study is presented in the next section.

METHODOLOGY

In depth interviews administered to professionals of four supermarket chains in the city of Sao Paulo. The convenience sample of supermarkets includes four of the seven supermarkets with the highest revenues in the country (see Table 4 for the profile of the supermarket chains included in the exploratory study).

Pao de Acucar supermarket chain pioneered PI-s in Brazil in the early 70's and, Paes Mendonca and Eldorado which have been working with PLs for more than 15 years. The French supermarket chain, Carrefour, although recently new to the Brazilian market has accumulated international experience with PLs.

Six professionals were interviewed: three Pl, managers and three merchandise managers. The supermarket managers were asked about: the price of PLs; quality of PLs; the profile of consumers of PLs (the questionnaire is presented in the Appendix). The results of the interviews are presented next.

RESULTS

When asked about the price differences between PLs and MBs all respondents indicated that PLs were cheaper than their comparable MBs. In the Eldorado chain, PLs tend to be 10%-15% cheaper than comparable MBs that are market leaders. In the Paes Mendonra chain, the price difference between PLs and the market leaders is between 5%-10%.

PLs in Pao de Acucar are, on average, 10% cheaper but the price difference can be as much as 30% for certain products. Price differences between PLs and MBs vary according to inventory turnover. For those products with high turnover the price difference is smaller.

Carrefour PLs are 10% cheaper than the market leader. Ile 10% limitation is explained as a function of consumers' perceptions of the relationship between price and quality. At Carrefour they believe that if the price difference was greater than 10%,consumers would tend to think less of the quality of PLs.

TABLE 4

THE PROFILE OF PAO DE ACUCAR, CARREFOUR, PAES MENDONCA AND ELDORADO

When asked about the specifications given to manufacturers for the production of PLs, respondents from Paes Mendonca, Eldorado and Carrefour indicated that the products commercialized under their PLs are exactly the same products commercialized under MBs. These supermarkets chains choose those manufacturers that produce the same products to the supermarkets' PL_s as they do for their own brands. The chains, however, contract specialized services for the packaging and the labelling of their PLs.

At Pao de Acucar, some of the PL products are equivalent to the MBs but, in some instances different product specifications are determined by the laboratory responsible for product development. The idea behind different product specifications is to increase the differentiation between PLs and MBs so that the consumers who prefer the PL products will remain loyal to the store.

Respondents were also asked about the quality control of PLs. Quality control was mentioned as an important factor to the success of their PLs. Carrefour contracted the services of a firm specialized in quality control which verifies, whether the contracted manufacturer actually has the potential to yield the products with the quality desired by Carrefour. Once a contract is signed between Carrefour and the manufacturer, periodic visits are made to ensure the desired quality.

At the Pao de Acucar chain, reports from the laboratory responsible for product development, and quality control, are used in the decision making process of choosing a manufacturer for the PLs. A group of specialists from Pao de Acucar observes the production process and once the products are delivered to Pao de Acucar, product samples are taken for analysis.

Paes Mendonca and Eldorado have product specifications and quality control contract agreements with manufacturers. Once the products are delivered, there is an examination of the products.

When asked about how PLs were promoted, all respondents indicated 'displays' as the most utilized promotion too] for PLs. PLs are also promoted in the supermarket's features.

The use of advertising is not recommended to promote PLs. Although respondents agree that advertising exerts a positive influence on consumers' perceptions of MBs, the use of advertising would lead to an increase in costs and, consequently, increase the price of PLs. Moreover, according to the manager from Paes Mendonca, the use of advertising could lead to large increases in sales, forcing supermarkets to extend their contracts with the manufacturers of P". These longer contracts are viewed as undesirable because they would be riskier to supermarkets.

Respondents indicated that P" have lower costs of distribution when compared to MBs. Lower distribution costs are possible because: purchases can be programmed, inventory can be kept at lower levels, and there is more efficient use of transportation.

When asked about the profile of the consumers of PLs, the respondents from Eldorado and Paes Mendonca described the consumer of PLs as 'very attentive to prices'; price sensitive consumers. ne manager from Paes Mendonca believes that the consumer of PLs makes most of his/her shopping at Paes Mendonca

and who has a positive image of the chain and of the brands controlled by it.

The respondents from Carrefour and Pao de Acucar described the consumer of PLs as someone who likes to try 'innovations'. He/ she tends to trust his/her own capacity of judging the quality of a product. This consumer is usually: young, well educated and a considerable level of income.

Conversely, the consumer of MBs, according to respondents, is described as someone with lower levels of income, who tends to decide on the basis of emotion. His/her purchase decision is based on the brand name of the product. These consumers tend to trust the leading brands and, consequently, tend to purchase them.

Analysis of the Propositions

Based on the information contained in: (a) the overview of the evolution of supermarkets and their PLs in Brazil; (b) the in depth interviews with supermarket managers; an analysis of the research propositions is presented.

The overview of the evolution of PLs in Brazilian supermarkets substantiates the proposition that: the relationship between the concentration of the food retailing industry and the emergence of PLs in supermarkets in MDCs is also observed in the Brazilian context (PI).

In regard to the characteristics of PLs (P2), private labels in Brazilian supermarkets seem to possess similar characteristics to their counterparts in MDCs. Brazilian PLs are cheaper than MBs and maintain the quality level of MBs.

Consumers of PLs in MI)Cs were described as: price sensitive, loyal to their usual store, educated and with relatively lower levels of income. It was expected that all these characteristics would hold for the consumer of PLs in Brazil, except for the income variable (P3). The information obtained in the interviews confirm this supposition.

The benefits from the lower prices offered by PLs in Brazil are enjoyed by consumers with higher levels of income versus those consumers with lower income levels (P4).

The level of concentration in the food retailing industry in Brazil presents itself as a paradox: the economic concentration of supermarkets in Brazil provided the conditions for the appearance of PLs; private labels offer good quality products at lower prices and, apparently, provide benefits to consumers. However, the consumers of PLs in Brazil are the ones with higher income levels; the ones who shop at supermarkets. Consumers with low levels of income are not able to enjoy the benefits of PLs (P4).

CONCLUSIONS AND DIRECTIONS FOR FUTURE RESEARCH

The economic concentration of the food retailing industry in Brazil provided gains in productivity which reflected in benefits to consumers. However, given that Brazilian supermarkets cater, primarily, to consumers with higher income levels, it is questionable that the economic concentration of the food retailing industry has brought significant benefits to all consumer segments. These benefits, although they exist, are enjoyed by the higher income segments and not, by the most impoverished.

APPENDIX I

In summary, this study suggests that private labels in Brazilian supermarkets have several characteristics that are similar to private labels in supermarkets of more developed countries: (1) the emergence of private labels in Brazilian supermarkets is associated with the economic concentration of the food retailing industry; (2) private labels in Brazilian supermarkets offer quality products at lower prices when compared to MBs; (3) benefits derived from private labels are enjoyed by consumers described as: price sensitive, loyal to their usual store and educated.

However, the evolution of private labels in Brazil presents a paradox to consumers: although private labels offer good quality products at lower prices, these benefits are not enjoyed by poor but, on the contrary, these benefits are enjoyed by the more affluent consumers. Further research can address the public policy implications of extending the benefits derived from private labels to other segments of society.

There are indications that consumers may still associate private labels with cheap, lower quality products. Previous research from Richardson, Dickson and Jain (1994) suggested that the promotion of private labels should concentrate not only on the price differences between PLs and MBs but also, on the development of a brand image associated with quality . Further research is needed to address these issues. For example, the extent to which these perceptions of PLs can be extended to different contexts needs to be evaluated.

This exploratory study needs to be extended not only to a greater number of supermarket chains, but also, to the consumers of private labels. Consumers' perceptions of private labels need to be addressed. The incorporation of research on the cognitive processes underlying attributional decisions (Hilton 1988; Wells and Gavanski 1989) may offer fruitful grounds for a better understanding of why consumers choose PLs over leading brands.

Further research in consumer behavior in developing countries can also be advanced. Ile focus on the Brazilian experience, although valuable, does not provide a comprehensive view of the diversity of consumer behavior and retail environments in LDCs.

REFERENCES

Bartels, Robert (1976), The History of Marketing Thought, Grid Publishing Inc., Columbus, Ohio.

Bellizzi, Joseph A. et al (1981), "Consumer Perceptions of National, Private and Generic Brands, Journal of Retailing, 57 (4), 56-70.

Bresser Pereira, Luis Carlos (1973), "Tendencias e Paradoxos do Varejo no Brasil," Revista de Administraq do de Empresas, 13 (3), 136-140.

Bond, C. (1984), "Own Labels vs. The Brands," Marketing, 8:24-26.

Borden, Neil H. (1967), "Os Efeitos Economicos da Propaganda," Revista de Adininistraq do de Empresas, 24 (7), 149185.

Burger, P. C. and Schott, B. (1972), "Can Private Brand Buyers Be Identified?", Journal of Marketing Research, (May), 219222.

Chernatony, Leslie (1989), "The Impact of the Changed Balance of Power from Manufacturer to Retailer in the UK Packaged groceries market," in Retail in Marketing Channels, ed. Luca Pellegrini and Reddy K. Srinivas, London: Routledge, 258273.

Cunningham, Isabella C. M. et al (1982), "Generic Brands vs National Brands and Store Brands", Journal of Advertising Research, 22 (5), 25-32.

Cyrillo, Denise C. 0. (1987), 0 Papel dos Supermercados no Varejo de Alimentos, Instituto de Pesquisas Economicas, Serie Ensaios Economicos (n. 68), Sao Paulo.

Findlay, Allan M. and Ronan Paddison (1990), "Retailing in Less-Developed Countries: An Introduction," in Retailing Environments in Developing Countries, Allan M. Findlay, Ronan Paddison and John A. Dawson, eds., Routledge: London, 261-271.

Frank, Ronald E. and Harper H. Boyd Jr. (1965), "Are Private Brand-Prone Grocery Customers Really Different?", Journal of Advertising Research, 5 (4), 27-35.

Grant, Robert M. (1987), "Manufacturer-Retailer Relations: The Shifting Balance of Power," in Business Strategy and Retailing," ed. Gerry Johnson, Chichester: John Wiley & Sons, p.43-58.

Gelb, Betsy D. (1980), "No-Name Products: A Step Toward No-Name Retailing?" Business Horizons 23:9.

Hilton, D.J. (1988), "Logic and Causal Attribution," in Contemporary Science and Natural Explanation: Common sense Conceptions of Causality, ed. D.J. Hilton, New York: New York University Press.

Jain, Subhash C. (1985), Marketing Planning and Strategy, 2nd. ed., Cincinnati: South-Western Publishing Co.

Mason, J. Barry and Mayer M. Lehman (1978), Modern Retailing - Theory and Practice, Business Publications: Texas.

McGoldrick, Peter J. (1985), "Prodotti Senza Marca: Perche Fanno Paura," 11 Marketing, 18: 24.

Myers, John G. (1967), "Determinants of Private Brand Attitude," Journal of Marketing Research, 4 (Feb), 73-74.

Pereira, Ines (1991), "Marcas de Supermercado - Um Estudo Exploratorio", Master Thesis, Fundacao Getulio Vargas, Sao Paulo.

Rao, Tanniru R. (1969), "Are Some Consumers More Prone to Purchase Private Brands?", Journal of Marketing Research, 6 (Nov), 447-450.

Richardson, Paul S., Alan S. Dick and Arun K. Jain (1994), "Extrinsic and Intrinsic Cue Effects on Perceptions of Store Brand Quality," Journal of Marketing, 58 (October), p.28-36.

Rothe, James T. and Lawrence M. Lamont (1973), "Purchase Behavior and Bad Choice Determinants for National and Private Brands Major Appliances," Journal of Retailing, 49 (Fall), 19-33.

Schutte, Thomas F. and Vitor J. Cook (1966, "Branding Policies and Practices," in Science, Technology and Marketing, ed. Raymond Haas, AMA, p.197-213.

Smith, Gery and Bill Hincheberger (1994), "Brazil: Is the Recovery for Real?," Business Week, October 3, p.20-22.

Stem, Louis W. (1970), "Ile New World of Private Brands,", in Retail in Marketing Channels, ed. Luca Pellegrini and Reddy K. Srinivas, London: Routledge, 138-141.

Uncles, Mark D. and Katrina Ellis (1989), "Own Labels: Beliefs and Reality," in Retail in Marketing Channels, ed. Luca Pellegrini and Reddy K. Srinivas, London: Routledge, 274286.

Well, G.L. and 1. Gavanski (1989), "Mental Stimulation of Causality," Journal of Personality and Social Psychology, 56,161-169.

----------------------------------------