The Potential of Co-branding as a Branding Strategy for Premium Private Labels: A Theoretical Assessment
Based on literature review on private labels (PL), co-branding and celebrity branding, a conceptual framework is developed in which a celebrity brand is used in a co-branding setting as a quality signal for a premium PL product. Similar to previous studies that are limited to PL and national brands (NB) as brand allies in a co-branding setting, we propose that the improved consumer evaluations of a celebrity co-branded, chain-labeled PL product will spill over to the first brand ally. That is the retailer and more specifically his brand image. Since previous research indicates a positive effect of retailer’s brand image on consumer evaluations of its PL, we also suggest that a celebrity co-branding strategy will indirectly (via retailer’s brand image as a mediator), improve consumer evaluations of an individual retailer’s PL product of any tier. The goal of the research is to contribute to the calls for more research on private label and branding as well as on retailer brand equity. This study provides the foundation for and should encourage further research in this area.
KeywordsPrivate labels Celebrity co-branding Spillover effect Retail brand image
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