Improving the Perceived Quality of Private Brands Using Co-Branding: The Role of Brand Equity and Store Image

Abstract

Private brands are typically regarded as lower quality products because of their lower price. Co-branding could be an effective strategy for retailers because it can enhance the quality image of a private brand. This study investigated the effects of the brand equity of national brands and store image on the consumers’ quality perceptions and purchase intentions toward co-branded private brands. We conducted a survey of 354 consumers with purchase experience in a leading convenience store chain in Taiwan. We found that the brand equity of national brands and store image both affect quality perceptions and purchase intentions for co-branded products. We also found that store image has not only an indirect effect on purchase intention through quality perception, but also a direct effect on purchase intention. However, brand equity has only an indirect effect on purchase intention through quality perception.