Questions about what makes brands and brand equity register in the minds of consumers have plagued marketers for years, giving birth to a never-ending stream of research on the subject. Adding to that is research by Raj Sethuraman, who surveyed 132 consumers about 20 popular grocery products in the US and the brands they chose to purchase — higher-priced national brands or in-store ones. He found that the difference in quality was the concern that drove consumers to pricy national brands when a cheaper store alternative was available, with brand equity playing a major role in the process. He says consumers often choose national brands even if they think both have the same quality. What’s worse, too low a price also seems to have negative connotations for store brands. It’s not always about price.

Title: What makes Consumers Pay More for National Brands than for Store Brands — Image or Quality?

Source: Social Science Research Network