The role of private branding in improving service quality

Purpose The purpose of this research is to examine the potential contribution of private branding to the service sector, and to integrate private branding into the SERVQUAL model. Design/methodology/approach A total of 300 customers of a health maintenance organization (HMO) were asked about the five dimensions of the service‐quality model and about several aspects of their HMO's private brand. Findings The study finds that satisfaction with service quality among subjects who were aware of the HMO's private brand was higher than that of unaware subjects when asked directly. In addition, a positive relationship was found between the perceptions of service quality in the HMO and the evaluation of a private brand in the HMO those customers who were aware of the private brand. The data analysis suggests that private branding constitutes an additional (sixth) dimension in the SERVQUAL model. Research limitations/implications This research was conducted during the initial stages of the market penetration of the HMO's private brand. Practical implications HMOs, and other service providers, should consider private branding as a pivotal strategy in reinforcing service quality. Originality/value This research is of importance for service providers because it identifies private branding strategy as having significant marketing potential for improving service quality.