“Outing” the Supplier: Implications for Manufacturers and Retailers

Abstract

Purpose To empirically examine the brand impact of consumer knowledge regarding a common supplier and shared product specifications between manufacturer and private label brands.

Design/Methodology/Approach The study uses three fast moving consumer goods in an experimental setting.

Findings The study finds that knowledge about common sourcing and shared specification decreases perceptual gaps between private labels and manufacturer brands and improves attitudes towards the retailer.

Research Limitation The study uses a student sample, although all product categories and brands tested are popular with this demographic, which is a key target market for the tested industries.

Practical Implications Manufacturer brands that supply private labels need to make sure that this information does not reach consumers and/or ensure their own brand version remains superior to the private label. Retailers that use well-known manufacturer brands as suppliers of their high quality private labels might wish to share this information with customers as a means of improving attitudes towards the private label and retailer brands.

Value This paper builds on earlier platform sharing research and shows the dangers and opportunities of sharing product specification across brands with differing reputations and prices.