Asymmetric Consumer Responses to National Brand and Private Label Brand Scandals

Retailers have increasingly turned their focus to growing Private Label Brands (PLBs). One inherent risk is the possibility of a consumer scandal. National brand (NB) scandals have become commonplace, and research has explored their effects (e.g., Roehm and Tybout 2006). In a series of three experiments we explore the asymmetric effects of PLB and NB scandals in terms of consumer evaluations of (1) the retailer, (2) categories, and (3) brands within those categories. We consider scandals simultaneously affecting NB and PLBs, and explore the moderating role of typicality, the mediating effect of perceived risk, and demonstrate how retailer sub-branding strategy can lessen PLB scandal effects.

Citation:

J.M. Mayer and Piyush Kumar (2009) ,"Asymmetric Consumer Responses to National Brand and Private Label Brand Scandals", in AP - Asia-Pacific Advances in Consumer Research Volume 8, eds. Sridhar Samu, Rajiv Vaidyanathan, and Dipankar Chakravarti, Duluth, MN : Association for Consumer Research, Pages: 376-377.