What is a store brand, and why do many of them imitate national brand packaging? Explain
the effects social, marketing, situational, and psychological influences on consumer decision-
making. Discuss ethical considerations relevant to this type of imitation.
A store brand is manufactured or acquired by a retailer for exclusive sale to consumers, which is also
referred to as a generic product (Chron, 2020). The store brand allows for higher profit margins because
the cost of production is typically lower. Some manufactures have "private label" products that is the
same product with a store brand label (Chron, 2020). Manufactures do this because they know
consumers focus on low-cost products when there are rough economic times (Chen, 2020).
Stores imitate national branding so consumers can compare the products next to each other, with all
things considered, and most likely chose the store brand because it is cheaper option. There are many
people that do not believe it is unethical for a store brand to imitate national brand packaging. Store
brand packaging that resembles the higher priced national brand is assumed to be made by the same
manufacture or endorsed by the national brand (Arora et al., 2014). A store brand is a smart business
decision for a company because it creates a low-cost option to higher priced national brands. In an
economy with inflation and rising prices, consumers try to save money where they can and store brand
products are a great way to do so.
I believe there are ethical issues when the store brand is packaged and marketed in a way it is intended
to trick a consumer into thinking they are getting the same product as the national brand (Arora et al.,
2014).
Arora, N., Henderson, T., & Kim, Y. (2014). Private Label Imitation of a Nation Brand: Implications for a
Consumer Choice and Law. Journal of Marketing Research, 51(6), 657-675.
Chron. (2020, November 24).
Store brand versus national brand.
Chron. Retrieved from
https://smallbusiness.chron.com/store-brand-vs-national-brand-68294.html
