From commodity to brand: antecedents and outcomes of consumers' label perception

Purpose This paper seeks to examine the significance of various aspects of consumers' perception of a collective label as predictors for consumers' intention to buy the labelled item and willingness to pay for the label. Design/methodology/approach The online survey was organised based on random sampling from a panel consisting of 46,000 people who had previously agreed to serve as online consumer panellists for a large market research firm. A total of 2,844 invitations were sent out and 684 panellists answered the invitation. The final sample consisted of 522 subjects. Findings The authors have developed and tested a model looking at the significance of various aspects of consumers' perception of a collective label as predictors for consumers' purchase intentions and willingness to pay for the labelled commodity. Practical implications By defining which factors influence consumers' purchase intentions and willingness to pay for the labelled product the paper suggests what managers should pay attention to when they introduce a new label for a commodity. Originality/value The current article contributes to the literature in three ways. First, the paper replicates the results of the previous studies on branding and extends the literature through introducing a new model defining consumers' purchase intentions and willingness to pay. Second, the paper develops and tests a model that can be applied to collective labels. Third, the paper introduces a new label specific variable – importance of the label.