Private Labels and National Brands: A Comparison Within Brand Extension

Abstract

This paper focuses on private labels and manufacturers’ brands; its specific goal is to answer the question whether they are the same in terms of their brand extension effectiveness. The paper reports the results of three experimental studies which analyze the impact of category fit and brand knowledge on brand extension of private label vs. national brands. The results seem to support the view that private labels differ from national brands; contrary to what stated by the branding literature both category fit and brand knowledge, have no significant effect on their extension evaluations.