Consumers lacking information prefer name-brand over store-brand products

When people purchase painkillers for a headache, but also when they buy salt or sugar, they opt for brand-name products, even if there are cheaper store-brand products with the same composition. This can be explained by a lack of information and product knowledge. This was shown by a large-scale study in the United States by the Tilburg economist Bart Bronnenberg and colleagues of the University of Chicago, published in the Quarterly Journal of Economics.. —> Read More