Question

Which of the following statements about private label brands is false?

1) Private labels allow the retailer to control the costs associated with developing, making, sourcing, and promoting the label.
2) Private labels are advertised in the newspaper as brands and are heavily promoted in stores.
3) Private label brands are usually sold at lower prices than manufacturer's brands.
4) Private label brands have been successful in the grocery industry, while failing in most other retail sectors.
5) Some retailers can't use private labels unless they are part of a buying group.

Answer 1

The false statement about private label brands is that private labels are advertised in the newspaper as brands and are heavily promoted in stores.

Step-by-step explanation:

The false statement about private label brands is: 2) Private labels are advertised in the newspaper as brands and are heavily promoted in stores.

Private label brands are brands that are owned and sold by a particular retailer. These brands allow the retailer to have control over the development, production, sourcing, and promotion of the label.

One key advantage of private label brands is that they are usually sold at lower prices compared to manufacturer's brands. This helps the retailer to offer more affordable options to consumers and compete with national brands.

While private label brands have been successful in the grocery industry, they have also found success in other retail sectors such as clothing, electronics, and beauty products.

It is important to note that not all retailers can use private labels unless they are part of a buying group. Buying groups allow smaller retailers to pool their resources and negotiate better deals with suppliers, including the creation of private label brands.