Consumer preferences for retailer brand architectures: results from a conjoint study

Abstract

Purpose

The purpose of this paper is to investigate how three dimensions of retailer brand architecture – share or retailer brands, quality of retailer brands and visibility of retailer brands – affect consumer intention to shop at stores

Design/methodology/approach

A conjoint analysis is conducted with a sample of 599 Danish consumers, which rated intention to shop at hypothetical new shops based on profiles derived from an orthogonal design

Findings

Two segments of consumers emerge, one price conscious and one more differentiated. Consumers prefer shops with lower price levels, with dominantly manufacturer brands, with quality of retailer brands at the same level as manufacturer brands, and with good visibility of retailer brands.

Research limitations/implications

The results are based on the evaluation of hypothetical stores, and many additional factors affect store choice in the real world.

Practical implications

Results suggest that we may be heading towards a polarized retail market, mainly divided between discount concepts and high quality retailer brand concepts.

Originality/value

The paper is innovative in isolating the effect of dimensions of retailer brand architecture on consumer store preference.

Citation

Grunert, K.G., Esbjerg, L., Bech‐Larsen, T., Brunsø, K. and Jørn Juhl, H. (2006), "Consumer preferences for retailer brand architectures: results from a conjoint study", International Journal of Retail & Distribution Management, Vol. 34 No. 8, pp. 597-608. https://doi.org/10.1108/09590550610675921