The effects of dual branding rumors on consumers’ national and store brand evaluations

Abstract

ABSTRACT The current research considers dual branding, where national brand manufacturers produce store brands against which they compete. Although agreements are confidential, rumors about the practice emerge. Thus, the authors examine the influence of dual branding rumor exposure on consumers’ respective national and store brand evaluations. The results support positive (negative) serial indirect effects of rumor exposure on participants’ store (national) brand evaluations through dual branding beliefs and comparative quality perceptions. In addition, smart shopper perceptions amplify the indirect effects of dual branding rumor exposure on store, but not national, brand outcomes.