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Private labels command a growing share of food retailers' shelf space. In this dissertation, I explain this phenomenon as resulting from "umbrella branding," or the ability of a single brand to reach across categories. Conceptually, I define umbrella branding as a behavioral attribute that describes a shopper's tendency

Private labels command a growing share of food retailers' shelf space. In this dissertation, I explain this phenomenon as resulting from "umbrella branding," or the ability of a single brand to reach across categories. Conceptually, I define umbrella branding as a behavioral attribute that describes a shopper's tendency to ascribe a performance bond to a brand, or to associate certain performance characteristics to a private label brand, across multiple categories. In the second chapter, I describe the performance bond theory in detail, and then test this theory using scanner data in the chapter that follows. Because secondary data has limitations for testing behavioral theories, however, I test the performance bond theory of umbrella branding using a laboratory experiment in the fourth chapter. In this chapter, I find that households tend to transfer their perception of private label performance across categories, or that a manifestation of umbrella branding behavior can indeed explain private labels' success. In the fifth chapter, I extend this theory to compare umbrella branding in international markets, and find that performance transference takes its roots in consumers' cultural backgrounds. Taken together, my results suggest that umbrella branding is an important behavioral mechanism, and one that can be further exploited by retailers across any consumer good category with strong credence attributes.
ContributorsTheron, Sophie (Author) / Richards, Timothy J. (Thesis advisor) / Grebitus, Carola (Committee member) / Hughner, Renee (Committee member) / Arizona State University (Publisher)
Created2014
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Private label growth in emerging markets has not kept pace with the growth in private labels elsewhere. For instance, in Europe and North America, private labels now constitute an average of 35% of total retail market share, compared to emerging markets, where market shares vary between 1% and 8 %.

Private label growth in emerging markets has not kept pace with the growth in private labels elsewhere. For instance, in Europe and North America, private labels now constitute an average of 35% of total retail market share, compared to emerging markets, where market shares vary between 1% and 8 %. This dissertation examines the possibility that differences in private-label performance between developed and emerging economies is not driven by one mechanism, but arises from a variety of sources, both structural, and behavioral. Specifically, I focus on manufacturers’ market power, retailers’ private label portfolio strategies, and consumers’ perceptions of private labels. In most emerging economies, national brand manufacturers tend to be the sole producers of private labels. As a result, manufacturers have inherent market power and can deter retailers from pursuing aggressive private label strategies, which results in low private label market shares. Moreover, some retailers in emerging economies now carry their private labels as part of a multi-tiered portfolio. However, a small price-gap between the quality tiers results in high intraportfolio competition leading to cannibalization and lower private label market shares. Last, private label market shares in emerging economies may be smaller than in developed economies because low-income households prefer higher priced national brands. This counterintuitive phenomenon is driven by two interrelated factors. First, social influence implies that low-income households are upward-comparing, they contrast themselves with high-income households whom they believe are better-off. Because higher-income households purchase national brands, upward-comparisons lead to a preference for national brands. Second, low income households are unknowledgeable about private label advancements hence they prefer national brands.
ContributorsPasirayi, Simbarashe (Author) / Richards, Timothy J. (Thesis advisor) / Morales, Andrea (Committee member) / Grebitus, Carola (Committee member) / Arizona State University (Publisher)
Created2016