Differences in the Effect of Ethical Labels on National Brand and Private Label Brand Products on Store and Brand Perception: A Preliminary Work

Abstract

Over the last years, consumers’ engagement towards socially aware consumption increased and there is not only a growing demand for ethical products (i.e. organic and fair-trade products) and corporate social responsibility initiatives, but also consumers tend to punish companies promoting unethical goods. Although several studies have investigated the effect of ethical labels on national brand (NB) products, research in the context of private label (PL) products is rare. This study contributes to existing research by investigating the effect of ethical labels on products in the context of NB and PL products, examining the effect sizes of product brand trust on store and brand perception. The study provides evidence that the effects are stronger for private label brand (PLB) products, indicating that ethical labels are of high relevance for private label brands.