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Article
Publication date: 11 July 2016

Justin Beneke, Simon Blampied, Nadine Dewar and Linda Soriano

This study aims to consider the impact of market orientation and learning orientation on organisational performance in the context of small- and medium-sized enterprises…

Abstract

Purpose

This study aims to consider the impact of market orientation and learning orientation on organisational performance in the context of small- and medium-sized enterprises (SMEs) in Cape Town, South Africa. SMEs play a vital role in developing countries’ economies given their large contribution towards employment and the economic output (gross domestic product). However, many SMEs struggle to implement practices that are used to successful ends by their corporate counterparts. In view of this, this study sought to probe this issue within an emerging market context.

Design/methodology/approach

A survey of 162 enterprises, using partial least squares -structural equation modelling path modelling, was used to link the constructs of market orientation, learning orientation and organisational performance.

Findings

The results revealed a significant relationship between market orientation and organisational performance. However, in contrast to other studies in the developed world, this study found that learning orientation has neither a significant effect on organisational performance nor a moderating effect on the relationship between market orientation and organisational performance of SMEs.

Practical implications

The implications of these findings suggests that, inter alia, the organisation’s implicit marketing plans should be made explicit and shared with employees throughout the enterprise. Moreover, owners and senior managers should embrace a positive marketing philosophy and optimal organisational structure, as well as be willing to assume risks to achieve organisational objectives. However, further research is advocated to understand the nuances distinguishing developing and developed countries.

Originality/value

This is one of the first studies to consider the interrelationships between market orientation, learning orientation and organisational performance in the context of SMEs within an emerging market setting. To the best of the authors’ knowledge, this is pioneering research in the South African domain.

Details

Journal of Research in Marketing and Entrepreneurship, vol. 18 no. 1
Type: Research Article
ISSN: 1471-5201

Keywords

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Article
Publication date: 12 January 2015

Justin Beneke, Alex Brito and Kerry-Anne Garvey

Establishing and/or developing a portfolio of private label brands (PLBs) is a strategic imperative for most retail chains. The purpose of this paper is to construct, and…

Abstract

Purpose

Establishing and/or developing a portfolio of private label brands (PLBs) is a strategic imperative for most retail chains. The purpose of this paper is to construct, and validate, a holistic conceptual model to investigate the effect of perceived product quality, relative price and risk on perceived product value and, ultimately, willingness to buy these brands. In addition to this, the study seeks to investigate the potential role of store image as an antecedent within the model.

Design/methodology/approach

A survey of middle to upper income shoppers was administered in order to determine the magnitude of the above-mentioned effects. The study focused on the market segment of private label breakfast cereal consumers within South Africa.

Findings

All relationships in the model were found to be significant at the 5 per cent level, except for store image on perceived risk. The strongest relationship, by some margin, was that between perceived value and willingness to buy PLBs.

Practical implications

The myth that a powerful store image can necessarily mitigate high levels of consumer risk was dispelled. In general, the results may be used to glean further insight into the consumer’s approach to buying PLBs and shape brand managers’ actions in building these brands.

Originality/value

This study draws on the collective works of Beneke et al. (2013), Snoj et al. (2004) and Sweeney et al. (1999) in exploring this issue. However, the research advances the discussion by considering a low-involvement product category and the inclusion of an additional antecedent – store image.

Details

International Journal of Retail & Distribution Management, vol. 43 no. 1
Type: Research Article
ISSN: 0959-0552

Keywords

Content available
Article
Publication date: 2 February 2015

Justin Beneke

Abstract

Details

British Food Journal, vol. 117 no. 2
Type: Research Article
ISSN: 0007-070X

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Article
Publication date: 3 June 2014

Justin Beneke and Natalia Zimmerman

The purpose of this study is to explore the effect of store image and perceived price on the consumer’s perception of private label brands (PLBs) that have grown in…

Abstract

Purpose

The purpose of this study is to explore the effect of store image and perceived price on the consumer’s perception of private label brands (PLBs) that have grown in stature in recent decades and are increasingly viewed as a strategic asset of retailers. In particular, the tenets of perceived quality, loyalty and awareness/associations, are argued to underpin the construct of brand prestige, which is used as a vehicle to assess consumers’ affinity toward the brand.

Design/methodology/approach

A consumer survey was conducted with a specific focus on purchasers of private label branded breakfast cereal in Cape Town, South Africa. The data from 205 respondents were scrutinized through partial least squares path modeling, which empirically tested the eight hypotheses embedded within the conceptual model.

Findings

The results suggest that perceived price is a powerful influencer in this process; however, the role of store image was seen to be less obvious. At a granular level, a relationship between store image and perceived quality was found to exist, but not so for loyalty and awareness/associations. In this respect, store image was seen as subordinate to the perceived price of the merchandise, bringing into question the assumed stature of store image as a key decision influencer in an emerging market context.

Research limitations/implications

This study was confined to a single product category, within a particular retail segment, as the study focused on PLB breakfast cereal products sold within mainstream South African supermarket stores. This was desirable so as not to infuse varying merchandise category profiles into the model. Furthermore, as data were collected exclusively in the city of Cape Town, the results cannot necessarily be extrapolated to South Africa as a nation. Finally, it should be noted that the study was conducted in an emerging market setting. Developed markets, where consumers are considerably more au fait with PLBs and have increased purchasing power, may therefore produce a different set of results. Thus, our findings are not necessarily generalizable to all branches of the retail sector, nor are they necessarily applicable throughout, and across, different countries. It is hoped that subsequent studies will probe these areas and provide comparative viewpoints.

Practical implications

This study upholds the view that price is a key driver in building PLBs, but interrogates the popular belief that store image automatically adds value in fostering goodwill toward the brand.

Originality/value

This study is one of the first to investigate the notion of private label prestige (grounded in that of brand equity theory) in an emerging market context. In doing so, the study postulates that the “halo effect” of store image on the comprehensive evaluation of the brand might not be as prominent as maintained in existing literature. The study, therefore, questions the role of store image and perceived price of the merchandise, finding that – in actual fact – these do not fare equally in consumers’ cognitive assessment of the private label merchandise.

Details

Journal of Consumer Marketing, vol. 31 no. 4
Type: Research Article
ISSN: 0736-3761

Keywords

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Article
Publication date: 2 February 2015

Justin Beneke and Emma Trappler

This study examined the influence of supermarket brand name on the perceived quality of its private label merchandise. The purpose of this paper is to determine whether…

Abstract

Purpose

This study examined the influence of supermarket brand name on the perceived quality of its private label merchandise. The purpose of this paper is to determine whether the fascia brand of a retail chain has the power to positively or negatively skew prevailing opinions concerning the quality of its own merchandise range, beyond the set of product-specific intrinsic benefits.

Design/methodology/approach

A within-subject two-phase research design was adopted, intially using an experimental approach and thereafter modeling the cognitive effect with the inclusion of a moderator variable (brand interaction). Paired sample t-tests were used to assess differences in mean ratings and partial least squares analysis was implemented in order to test the hypothesized relationships.

Findings

In the experiment phase, both products were rated equally at the outset in unsighted conditions, however, ratings diverged when brand name was introduced. Here, the high-end private label brand was scored considerably better than in its unsighted condition, while the low-end brand suffered a marginal decline in rating. In the modeling phase, two iterations of the conceptual model were run, considering the high-end and low-end brands seperately. The results were mutually reinforcing. A strong relationship, significant at the one percent level, was found to exist between brand name and perceived quality for both the lower- and higher-end brands, whereas no moderation effect was found to exist. This suggests that entrenched views of the brand strongly determine the perceived quality thereof, with operational and day-to-day fluctuations having little bearing on this.

Research limitations/implications

This study focusses solely on South Africa, an emerging market within the BRICS consortium. To this end, the results are not transferable to other markets. The context of the study pitted a top tier retail brand against a mid tier retail brand. In accordance with this eventuality, lower income consumers, and retail chains catering to this market segment, do not constitute components of this particular study.

Originality/value

While the relationship between store image and perceived quality of private label merchandise is well documented, this study considers the effect through an experimental design. Here, perceived quality was measured both with and without brand cues evident. Thus, the results are likely to be more accurate than those acquired through strictly survey research. As a defining feature, the study points to the brand name as being a supremely powerful extrinsic cue, and hinting at the fact that it is long term influences that create a distinct brand aura, with these being largely undisturbed by short term fluctuations.

Details

British Food Journal, vol. 117 no. 2
Type: Research Article
ISSN: 0007-070X

Keywords

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Article
Publication date: 24 May 2013

Justin Beneke, Ryan Flynn, Tamsin Greig and Melissa Mukaiwa

This study endeavours to examine the influence of perceived product quality, relative price and risk, respectively, on perceived product value and, ultimately, consumers'…

Abstract

Purpose

This study endeavours to examine the influence of perceived product quality, relative price and risk, respectively, on perceived product value and, ultimately, consumers' willingness to buy private label household cleaning products.

Design/methodology/approach

Respondents (157) were recruited through an in‐store survey and the data analysed using partial least squares path modelling.

Findings

The results are similar to those proposed by Sweeney, Soutar and Johnson. Strong relationships between perceived relative price and perceived product value, as well as between perceived product value and willingness‐to‐buy, were found to exist. A negative relationship was observed between perceived product quality and perceived risk. The results indicate that establishing a value perception is critical in the buying process. Tangible cues exhibiting high quality (e.g. packaging, shelf space, media placement) need profound attention. Furthermore, it is suggested that risk (which plays an important part in the consumer decision process) is minimised through optimal retail service quality and customer reassurances.

Research limitations/implications

This study is limited in that respondents are consumers of a specific geographic region and demographic grouping. Findings may therefore not be generalisable, particularly with respect to other countries.

Originality/value

This is one of the first studies investigating consumers' perceptions of value, using the attributes of quality, risk and price, in an emerging market setting.

Details

Journal of Product & Brand Management, vol. 22 no. 3
Type: Research Article
ISSN: 1061-0421

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Article
Publication date: 24 February 2012

Justin Beneke, Anne Greene, Inge Lok and Kate Mallett

The purpose of this study is to investigate the perceived risks that consumers associate with premium grocery private label brands in South Africa, and to understand which…

Abstract

Purpose

The purpose of this study is to investigate the perceived risks that consumers associate with premium grocery private label brands in South Africa, and to understand which of these risks significantly affect their purchase intention.

Design/methodology/approach

A self‐administered survey consisting of 325 respondents was utilised. Item total reliability and confirmatory factor analysis were used to test the reliability and validity of the constructs. Furthermore, path modelling in the form of partial least squares analysis was employed to analyse the relationship between consumers' perceived risks and their purchase intention.

Findings

This study revealed that functional and time risk both have a significant negative influence on consumers' purchase intention of premium grocery private label brands (at the 5 per cent significance level), while financial, physical, psychological and social risks do not significantly influence their purchase intention.

Research limitations/implications

This study is limited in that respondents are consumers of a specific geographic region and demographic grouping. Findings may therefore not be generalisable, particularly with respect to developed markets.

Originality/value

This is one of the first studies investigating consumers' perceived risks of premium grocery private label brands sold within emerging markets. As retailers continue to grow profits through the deployment of such brands, this study may provide direction on how best to entice consumers to trial and adopt these brands in a largely commodity‐driven environment.

Details

Journal of Product & Brand Management, vol. 21 no. 1
Type: Research Article
ISSN: 1061-0421

Keywords

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Article
Publication date: 22 March 2011

Justin Beneke, Nicole Frey, Ruth Chapman, Nontuthuzelo Mashaba and Tatum Howie

This article is the culmination of an exploratory study into the mature market (defined as over the age of 55) in South Africa. The article aims to focus on the mature…

Abstract

Purpose

This article is the culmination of an exploratory study into the mature market (defined as over the age of 55) in South Africa. The article aims to focus on the mature market's media consumption, perception of portrayal in the media, adoption of technology, and outlook on life – all of which influence their spending patterns in their twilight years.

Design/methodology/approach

The study gained an international perspective of the mature market through the literature on the subject. Empirical analysis of the South African market was thereafter conducted through a lifestyle survey of 117 respondents living in metropolitan areas. The data were imported into – and analysed using – Statistica for descriptive and clustering purposes.

Findings

The mature market is, unsurprisingly, most in favour of traditional media channels. To this end, television, radio, magazines and newspapers still remain an effective means to communicate with this market. Use of mobile phones and the internet was observed – although in a limited sense. A negative attitude towards advertising was observed on the whole, with individuals within this cohort feeling neglected in favour of younger consumers. The variables Age, Income, living standard measure (LSM) groupings and Internet usage, when utilised in conjunction, appear to be an effective differentiator of the mature market in South Africa. Three lifestyle clusters were discovered by the study, namely: Old optimists, Young up‐beats, and Younger opinionists.

Originality/value

It has been established that the mature market is a lucrative one for retailers. However, the majority of studies have been focused on developed nations such as the UK and the USA. This study brings about an emerging market perspective.

Details

Journal of Consumer Marketing, vol. 28 no. 2
Type: Research Article
ISSN: 0736-3761

Keywords

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Article
Publication date: 19 October 2015

Justin Beneke, Ozayr Mathews, Travys Munthree and Kavesan Pillay

The purpose of this paper, conducted within an emerging market context, was to investigate the influence of colour in packaging on the purchase intent of consumers for…

Abstract

Purpose

The purpose of this paper, conducted within an emerging market context, was to investigate the influence of colour in packaging on the purchase intent of consumers for bottled water. Colour, whether in branding or packaging, has always been an important attribute in attracting the attention of consumers. For years, bottled water packaging has largely centred on the colours blue and white. The study looked into the effect of cold colours, warm colours and neutral colours on the purchase intent for bottled water. It also analysed the influence of the demographic variables of age group, gender, language and income group on colour preferences of the product.

Design/methodology/approach

An experimental design was utilised for the purposes of this study. Data were collected by means of a mall intercept survey of South African consumers within suburban supermarket stores.

Findings

The findings determined that while consumers appear somewhat indifferent between colours, there is a greater preference for neutral colours as opposed to cold and warm colours in bottled water packaging. It was also determined that income has a significant influence in colour preference for bottled water, with lower income groups preferring cold and warm colours and higher income groups preferring neutral colours.

Research limitations/implications

This suggests that marketers of bottled water ought to pay close attention to these signals and optimise packaging accordingly. In particular, this study suggests that tailored coloured packaging can be used to target specific income groups in a more appropriate manner. This is particularly pertinent in an emerging market context, where income disparities are extremely prevalent. Small- and medium-sized enterprises (SMEs) and entrepreneurs can seize this opportunity to introduce niche products and stimulate innovation in a relatively stagnant marketplace.

Originality/value

As discovered in the course of this research, few studies have been undertaken to examine the effect of colour in packaging in the context of emerging markets and, notably, sub Saharan Africa. As such, the authors believe this is a significant contribution to the knowledge base. It is hoped that the results of this study will assist marketers, SMEs and entrepreneurs in improving understanding of how colours differentiate a product, particularly in a commodity merchandise category such as bottled water, the knowledge of which may be leveraged to tailor the positioning in the market.

Details

Journal of Research in Marketing and Entrepreneurship, vol. 17 no. 2
Type: Research Article
ISSN: 1471-5201

Keywords

Content available
Article
Publication date: 25 January 2013

Abstract

Details

Journal of Consumer Marketing, vol. 30 no. 1
Type: Research Article
ISSN: 0736-3761

Keywords

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