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4.1 A STORE BRAND MAY BE THE EXACT SAME PRODUCT AS THE NATIONAL BRAND! - SUPERMARKET
DISCOUNTS
I
had heard many, many reports that store brands or private labels were often exactly the
same as the national brand only in a different box or with a different label.
Now,
after digging around, I've found absolute confirmation in an article from a California
Newspaper, The Orange County Register, by David Lynch, published on March 1,
1992:
"Sethuraman,
(a University of Iowa marketing professor) who studies packaged food pricing, noted that
40 percent of national brands produce identical products under private labels for
supermarkets.
Nonetheless,
the lower price can have a bad influence on the sale of private-label brands.
The
marketing professor found that consumers perceive that private-label products are of
lesser quality when priced more than 20 percent below the national label. But if the
difference is less than 10 percent, they purchase the national brand."
STORE BRANDS IN DEPTH
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