Robert E. Sanders
9500 Gilman Drive #0553
Wells Fargo Hall, 3W106
San Diego, CA 92093
Institutional Affiliation: University of California San Diego
NBER Working Papers and Publications
|November 2018||Consumer Misinformation and the Brand Premium: A Private Label Blind Taste Test|
with Bart Bronnenberg, Jean-Pierre H. Dubé: w25214
We run in-store blind taste tests with a retailer’s private label food brands and the leading national brand counterparts in three large CPG categories. In a survey administered during the taste test, subjects self-report very high expectations about the quality of the private labels relative to national brands. However, they predict a relatively low probability of choosing them in a blind taste test. Surprisingly however, an overwhelming majority systematically chooses the private label in the blinded test. During the week after the intervention, the tested private label product market shares increase by 15 share points, on top of a base share of 8 share points. However, the effect diminishes to 8 share points during the second to fourth week after the test and to 2 share points during th...
Published: Bart J. Bronnenberg & Jean-Pierre Dubé & Robert E. Sanders, 2020. "Consumer Misinformation and the Brand Premium: A Private Label Blind Taste Test," Marketing Science, vol 39(2), pages 382-406.