CLEP Marketing Practice Exam 2026 – All-in-One Guide to Achieve Top Scores!

A private brand, often referred to as a store brand or retailer brand, is indeed considered an intermediary brand because it is created and marketed by a retailer or a distributor rather than the manufacturer of the products itself. These brands are typically positioned as alternatives to national brands and are sold exclusively through the retailer's outlets, allowing retailers to differentiate their offerings and build customer loyalty.

Private brands can often be seen as a way for retailers to exert control over pricing and branding. By offering their own products at competitive prices, they can attract price-sensitive customers who may be drawn to the perceived value of these brands compared to national brands. This strategy not only enhances the retailer's profit margins but also creates a unique identity for the store that can lead to increased customer retention and brand loyalty.

The other types of brands mentioned—national brands, generic brands, and luxury brands—serve different functions in the market and do not fit the definition of an intermediary brand in the same way that private brands do. National brands are generally produced by well-known manufacturers, generic brands refer to unbranded products that emphasize low price, and luxury brands are synonymous with high quality and exclusivity, typically catering to a niche market segment.