Effects of Store Brand Extensions along the Quality-Price Continuum

Abstract

The extraordinary development of store brands has been followed by higher sophistication of the strategies related to the store brand portfolio, which usually different value propositions in the quality-price continuum. Moreover, it is usual that these proposals are presented as extensions of the standard store brand. This study analyses to what extent the introduction of economic or premium versions affect quality perceptions of the standard store brand and the extended brand. The findings show that such extension of the store brand portfolio has a positive net effect on the perception of the brand.