Does Chain Labeling Make Private Labels More Successful?

Some retailers use their chain names to identify their private labels. We find that chain labeling increases the likelihood that consumers correctly recognize a private label as belonging to a specific retailer, and that on average, chain labeling improves consumers’ attitudes toward private labels. We also identify two boundary conditions for this effect: chain labeling helps for standard, but not for economy private labels, and it improves consumers’ attitudes toward private labels in categories with low brand relevance. These results have important implications for managers on whether and when to use chain labeling for their private labels.