Question

Which of the following accurately defines "private-label" products?

A. Products that are available to be purchased only by a store's employees
B. Products whose names are not displayed on their packaging
C. Products that are sold only to a select group of customers
D. Products that are developed by national or international manufacturers and then sold under another brand name that is available only at a particular retailer's stores.

Answer 1

Private-label products are those sold under a retailer's brand name, exclusive to that retailer, which helps differentiate them in the market. They allow retailers to offer unique items and can lead to customer loyalty.

Step-by-step explanation:

Private-label products are those that are developed by national or international manufacturers but are then sold under a retailer's own brand name, exclusive to that retailer's stores. These products are a way for firms to differentiate themselves from competitors. Differentiation can occur through various aspects, including the physical aspects of the product, the location from which the product is sold, the intangible aspects of the product, and the perceptions of the product.

For example, a supermarket may have its own brand of cereal, which is manufactured by a large food company but packaged and sold under the supermarket's label. This allows retailers to offer unique products to their customers, creating a specific identity and potentially fostering customer loyalty.