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The rise of premium private label brands transforming the image of store brands in grocery retailing: a qualitative study on German consumers
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In the retailing world, private label brands (PLBs) are gaining growing attention. In particular, at grocery retailers, the own brands bring numerous advantages from the perspective of the retailer, as well as from the consumer side. Premium PLBs are considered to be rising stars among various types of private labels. Existing literature focuses mainly on the role of overall PLBs and does not distinguish between different kinds. However, for retailers to benefit most from the premium PLBs, it is important to understand how consumers perceive the premium type within the category of PLBs in general. The study approaches the questionby14 in-depth semi-structured interviews comparing German consumer’s perceptions and reasons to buy for PLBs versus premium PLBs. The results show that premium PLBs are perceived differently and bought for contrary reasons than general PLBs. The findings theoretically imply the importance of differentiating between various types of PLBs, when drawing conclusions for PLBs. Further, the study results help managers to understand how to successfully expand the assortment of premium PLBs and there fore to profit most from this particular type of PLB.
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Private label brands Premium products Grocery retailing Consumer perceptions Consumer buying behavior