Customers’ perception of the quality of store-branded goods depends on the availability of a second option, and the order in which the options are introduced, new research has shown.
Retailers found it difficult to convince customers that their “premium” brands were of higher quality than those in their value-for-money range when the cheaper option was introduced first.
When a premium store brand came first, it was initially perceived as a value brand. If a cheaper brand was then added, it increased the value of the premium label.
The research also highlighted that most customers were unaware of the price and quality difference between the store brand products.Read more at Monash University