The purpose of this study is to determine the extent that extrinsic product attributes (brand name/packaging) influence consumers' perceptions and resulting evaluation of intrinsic product attributes, quality, and purchase intention.
A 2 (brand) x 2 (treatment group) experimental “taste‐test” design was created using two brands of cookies (national versus store brand) and two treatment conditions (whether the cookie was in its respective package or placed in the competitor's package). T‐tests were used to compare mean scores of six product attributes (taste, texture, appearance, purchase intent, value) measured on five‐point bi‐polar adjective Likert scales.
Subjects' evaluations of the national brand were significantly higher compared to the store brand across five of the six cues with the exception of value (as measured by willingness to pay MSRP) when the national brand was in its respective packaging. Subjects also rated the national higher on four of the six cues when it was in the store brand bag. The reverse was not found when the store brand cookie was in the national brand bag.
The results suggest that store brand managers must increase the quality of their product if they expect to capture market share from the national brands. Further research is recommended using other brands and product categories.
Store brands may be able to narrow the market share gap with the national brands only if the quality of the store brands increase. Consumers are more objective in evaluating intrinsic cues than previously thought.
