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Article
Publication date: 15 February 2008

Mónica Gómez and Natalia Rubio Benito

The purpose of this paper is to study the rationale for the production of store brands and the possible existence of different store brand manufacturer segments according to their…

2758

Abstract

Purpose

The purpose of this paper is to study the rationale for the production of store brands and the possible existence of different store brand manufacturer segments according to their competitive position, size, advertising investment, sector concentration and type of product.

Design/methodology/approach

The method to obtain information is a survey developed in Spain and answered by manufacturers of consumer packaged goods. The methods applied are descriptive (Crosstabs and Anova) and multivariate techniques (correspondence analysis, chi‐square automatic interaction detector (CHAID), and cluster).

Findings

The article provides empirical evidence in favour of the rationale for the production of store brands by non‐leading medium to small‐sized firms and against this practice by leading manufacturers. It also shows the existence of different manufacturer segments.

Research limitations/implications

The main disadvantages of this research are based on their exploratory nature and on the method to obtain information (postal survey): self‐selection, small sample size and measuring of the variables (perceptual bias). Additionally, the goodness of fit of the CHAID applications is not very high.

Practical implications

The insights presented here can be used by manufacturers from other countries with a less developed store brands market, such as Eastern European or Latin American. Leading manufacturers or mid‐size manufacturers with high advertising investment can still compete head to head with store brands. The other manufacturers must adapt their strategies to collaborate with retailers in order to produce store brands.

Originality/value

There are no previous studies that empirically assess the rationale for the production of store brands. Moreover, no empirical research has focused on the manufacturers' group identification regarding their decision to produce store brands. This study determines the most significant variables in the identification of manufacturer groups.

Details

European Journal of Marketing, vol. 42 no. 1/2
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 27 August 2019

Natalia Rubio, Nieves Villaseñor and María Yagüe

The evolution of private labels (PL) is a recent trend in the retail industry: many retailers now manage a PL portfolio that includes multiple value propositions, as well as…

1986

Abstract

Purpose

The evolution of private labels (PL) is a recent trend in the retail industry: many retailers now manage a PL portfolio that includes multiple value propositions, as well as various brand name strategies. Little research has been done, however, on how this combination of PL strategies conditions the results of the retailer that manages them. This study aims to examine the formation of PL brand equity and its effect on store loyalty for retailers with differently tiered PL programs (a “better” program with standard PL vs a full PL quality spectrum with economy, standard and premium PLs) and different PL naming strategies (store-banner name or stand-alone brand name).

Design/methodology/approach

A survey (N = 644) was used to test the model in the context of the consumer goods retail industry. Exploratory factor analysis, confirmatory factor analysis and multi-group structural equation modelling techniques were used to assess the proposed model.

Findings

The results show differences in the formation of PL loyalty based on whether the retailer has a tiered PL program. In portfolios with economy, standard and premium PLs, PL associations have a stronger effect than PL awareness in the formation of PL loyalty. Portfolios with a standard PL show balanced effects of PL associations and PL awareness on PL loyalty formation. As to the positive effect of PL brand equity on store loyalty, this study also shows a stronger effect of PL brand equity on store loyalty in chains that choose to use their store banner name in their PLs.

Practical implications

Retailers that manage multi-tier PL portfolios (as opposed to those that commercialise a standard PL) can increase loyalty to the PL portfolio significantly by constructing highly differentiated images of their economy, standard and premium PLs to ensure that consumers truly perceive the different value propositions of their PL tiers. As to PL naming strategy, the authors recommend that retailers that use the same retail chain name for one or several of their PLs invest in their corporate reputation to strengthen the brand equity achieved by their PLs and thus increase loyalty to the retail chain. Retailers must perform specific communication and advertising campaigns for PLs with the stand-alone brand name.

Originality/value

Today, any reference to PLs as a whole is overly simplistic, but no research has assessed empirically differences in the influences of a multi-tiered vs a standard PL program on the PL loyalty formation for PL portfolios. Nor has any empirical research incorporated the influence of PL naming strategy on store loyalty. This study fills these gaps, integrating into the same model two significant moderating variables of retailers’ strategy: their PL tier strategy and their PL naming strategy.

Details

Journal of Product & Brand Management, vol. 29 no. 1
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 16 November 2015

Natalia Rubio, Javier Oubiña and Mónica Gómez-Suárez

The purpose of this paper is to attempt to understand the extent to which price consciousness and quality consciousness influence attitudinal loyalty to store brands (SBs) in…

3597

Abstract

Purpose

The purpose of this paper is to attempt to understand the extent to which price consciousness and quality consciousness influence attitudinal loyalty to store brands (SBs) in different segments of consumers: heavy, medium and light buyers of SBs. SBs are currently consolidated among price-conscious consumers, but less established among the quality-conscious consumers.

Design/methodology/approach

After reviewing the literature and constructing a theoretical model, the authors performed a study on Spanish food products, a sector in which SBs have achieved a significant market share. They collected data through a personal survey and analyzed it using structural equations modeling, and they performed a multigroup analysis of heavy buyers, medium buyers and light buyers of SBs.

Findings

The results obtained alert retailers to the tremendous importance of price vs quality in the formation of SB value and loyalty to SBs among heavy buyers of these brands, show the balance between price and quality as components of SB value and generators of loyalty among medium buyers and recognize the need to strengthen the image of SB quality to reinforce SBs’ value and smart shopping associations to increase light buyers’ loyalty to SBs.

Originality/value

The study contributes new evidence and knowledge on SB loyalty among consumers who show different usage of these brands (heavy, medium and light buyers). It then assesses the short- and long-term value of each segment of customers for the retailer and recommends retail strategies adapted to each segment.

Details

Journal of Product & Brand Management, vol. 24 no. 7
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 12 August 2019

Natalia Rubio, Nieves Villaseñor and Maria Jesús Yagüe

The purpose of this paper is to introduce the concept of customer’s value to the retailer (CVR) from a marketing perspective. CVR is a broad concept that has two components…

1084

Abstract

Purpose

The purpose of this paper is to introduce the concept of customer’s value to the retailer (CVR) from a marketing perspective. CVR is a broad concept that has two components: loyalty intentions to the retailer and intentions to try new products or brands that the retailer offers. This study proposes a theoretical model and considers the effect of three sources of CVR in consumer goods retailing: customer’s perceived functional service value, customer’s perceived private label brand (PLB) equity and customer’s perceived relationship value. The effects of the proposed antecedents are applied to two groups of customers: variety-seeking and non-variety-seeking consumers.

Design/methodology/approach

The questionnaire surveys were administered to customers of five retail firms with a nationwide presence in Spain (Carrefour, Auchan, Eroski, Mercadona, and El Corte Inglés). A total of 742 valid questionnaires was obtained.

Findings

The results show that the key differences between variety seekers (VS) and non-variety seekers (NVS) are imposed by PLB equity, which has a stronger relationship to both components of CVR for VS than for NVS. Relationship value has a stronger relationship to intention to try new products or brands for NVS than for VS. Finally, functional service value has a stronger relationship to intention to try new products or brands for VS than for NVS.

Practical implications

The results obtained for both groups have significant implications for segmentation and management of differentiated marketing strategies based on consumers’ characteristics (variety-seeking tendency).

Originality/value

This study establishes a new concept and measurement of CVR as determined by the customer him/herself. The paper provides a comprehensive analysis of how the relative importance of service, PLBs and relationships affect CVR. Finally, despite the fact that contemporary consumers tend to seek variety, the variety-seeking profile has not been used to date as a moderating variable in studies of CVR.

Details

Journal of Consumer Marketing, vol. 36 no. 5
Type: Research Article
ISSN: 0736-3761

Keywords

Article
Publication date: 27 May 2014

Natalia Rubio, Nieves Villaseñor and Javier Oubiña

Store brands have become consolidated in the food market and are currently considered real brands. The purpose of this paper is to determine the factors that contribute to…

1286

Abstract

Purpose

Store brands have become consolidated in the food market and are currently considered real brands. The purpose of this paper is to determine the factors that contribute to consumers’ identification with store brands, as well as the possible effect of consumers’ identification with store brands on their loyalty to the retail establishment.

Design/methodology/approach

The paper achieves its goal by reviewing the academic literature on the topic and proposing and validating a theoretical model for consumer-store brand identification. The theoretical model is validated through an empirical study of the Spanish market for food products using data gathered from individuals responsible for shopping for their homes who claim to have purchased store brand food products at least once. Structural equations modeling is then used to estimate and perform a multigroup analysis for heavy and light buyers of store brands.

Findings

The results obtained reveal, first, that consumers’ store brand identification mediates the relationship between their value consciousness and their loyalty to the retail establishment that manages a broad, competitive portfolio of store brands. Second, the study demonstrates the effect of other variables, such as perceived risk associated with the purchase of store brands, their perceived value and consumer satisfaction. Finally, the results show important differences between heavy and light buyers of store brands.

Research limitations/implications

The main limitations of this research derive from the factors conditioning the information. Store brand value was analyzed on an aggregate level, for the Spanish food products market. Future research should include other store brands (e.g. premium store brands), control for store brands with different labels and expand the area of application to new product categories and new countries.

Practical implications

The results obtained have interesting implications for food retailers. These implications concern the management of value store brands in the product portfolio to achieve loyalty to the retail establishment among value-conscious consumers (who constitute the main target of value store brands).

Originality/value

This paper analyzes consumer brand identification in an area that has not been studied to date: store brands. It contributes interesting and very useful findings for retailers who commercialize these brands in their establishments. The line of research on brand identification is quite new in academic research and has arisen due to the importance for companies of constructing close, lasting connections with the consumer.

Details

British Food Journal, vol. 116 no. 6
Type: Research Article
ISSN: 0007-070X

Keywords

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