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.