A Structural Equation Modeling-Based Examination of the Private Label Brand (PLB) Consumer Evaluation Process

Abstract

The goal of this paper is to answer the question “What variables influence consumer private label brand (PLB) evaluations?” We employ structural equation modeling (SEM) in order to analyze a hypothesized process by which consumer-based evaluations of retailer and product category, along with perceived risk of the category and PLB all affect the ultimate PLB brand evaluation. PLBs have been heavily researched in academic marketing research journals but SEM-based research is minimal. Research has generally been conducted using model-building techniques which are then empirically tested using real-world data. Given the complexity of the process, an alternate approach is to use experimental techniques to gain first-hand PLB data and then analyze it using appropriate methodology. The current project represents a step in that direction. While the model is subject to limitations that call its utility into question, it does provide guidance for a future, more theoretically-sound a priori model and resulting SEM analysis.