Extending the Retail Brand to Non-traditional Products

Abstract

This study focuses on retail brand extension from the consumer perspective when non-traditional products—in this case over-the-counter pharmaceuticals—are offered with the private label brand. A model in which attitude towards the extension (ATE) mediates the impact of some antecedents—national brand preference (NBP), trust towards the retailer (T), fit (FIT), private label knowledge (PLK) and consumer innovativeness (INN)—impacting the intention to purchase the extended PL brand (INTB) is proposed and tested. Direct effects regarding NBP and FIT are tested too. 500 questionnaires were collected from a sample of retail customers. Structural equation modeling serves to test the hypotheses. The model shows a good fit and the hypotheses are supported—except for INN.