Search results

Investigates the extent to which expert evaluations of quality impact price premiums of national brands over the store brands. Using data from Consumer Reports, finds that the average quality of store brands exceeds the average quality of national brands in 22 out of 78 product categories. Yet store brands typically do not charge price premiums, while national brands do (28.7 percent price premium on average). When national brands have higher quality, however, they increase the price premium from 28.7 percent to 50.4 percent on average. Regression analysis predicts that a national brand would command 37 percent price premium over a store brand that offers the same quality, a finding that highlights the handsome returns on building brand equity.

The main aim of this paper is to examine the role of brand reputation on the impact of value product on perceptions of a premium product from the same brand. As a secondary goal, it tests and extends existing findings from judgment tasks to a choice task.

Two online experiments are presented. In Study 1 (1a and 1b), participants provided quality and price judgments to products. Brand reputation was manipulated by comparing common store brands to non-store brands (Study 1a) and to upscale store brands (Study 1b). In Study 2, we examined whether findings indicating a positive effect of a value store brand on a premium store brand extends to a choice context. Participants made choices between a premium store brand and a national brand in the presence of either a value store brand or a value national brand.

It was found that brand reputation plays an important role in the interplay of products in line extensions. While the positive impact of a value brand on a premium brand is at its strongest level for a regular store brand, it still has a moderate size for a non-store brand without a defined reputation, as well as for an upscale store brand. Second, using a choice task, we reject an important rival explanation for the impact of a value store brand on a premium store brand observed in previous research.

The authors have focused on consumers’ expectations of products. While research has shown that these expectations play an important role in evaluations, future research may directly examine perceptions after consumption. The findings also offer an opportunity for future research to examine the differences in perceptions between store and non-store brands at different positioning levels, as well as other factors that affect brand reputation.

The findings have two practical implications. First, our results indicate that when a manufacturer produces two products in the same category at different levels of quality, there is some benefit in letting consumers know about this relationship. The authors consistently found no negative impact on the brands and often a positive impact on the premium brand. While effects are stronger for common store brands, they are likely to emerge for any type of brand, albeit weaker.

This paper contributes to the nascent literature on multi-tier brands and vertical extensions in several ways. First, the role of brand reputation was examined and how it interacts with positioning in line extension context. Second, we show that the effect of a value brand on a premium brand is stronger for store brands, but still existent for non-store brands. These results offer implications for practice and open opportunities for future research on multi-tier store brands.

This exploratory study aims to examine the prevalent triggers that motivate a premium brand purchase in an online vs offline retail format.

A binary logit analysis is used to build a predictive model to assess the likelihood of the premium brand consumer seeking an online or an offline platform. Demographic and usage-based profile of the two set of consumers is established through a chi-square analysis.

Three hundred and forty six urban consumers of premium branded apparels residing in two Indian Metros were studied. A predictive model with 89.6% accuracy was validated for distinguishing premium brand buyers who shop at brick-and-mortar store or online platforms. Quality and finish were factors sought by the online buyer, whereas autotelic need, pleasurable shopping experience and social approval were important triggers for an in-store purchase.

The study posits divergent demographics and motivational drivers that led to an online vs offline purchase. Though interesting and directional, the study results need to be examined across geographies and categories for establishing the generalizability of the findings.

The study findings indicate that premium brand manufacturers can devise an omni-channel strategy that is largely tilted toward the online platform, as the quality conscious and brand aware consumer is confident and thus open to an online purchase. The implication for the physical outlet on the other hand is to ensure exclusive store atmospherics and knowledgeable but non-intrusive sales personnel.

The study is unique as it successfully builds a predictive model to forecast online vs offline purchase decisions among urban millennials.

As sales of store brands increase, retailers are shifting their store branding strategies by raising store brand prices, extending their store brand assortments to high‐risk categories, and marketing store brands in high retail image formats. The purpose of the research is to explore the effects of these changes on consumers’ judgments of store brands. The conceptual framework is derived from pricing, prospect, and information processing theories. It is tested in two experiments. The study finds that consumers’ use of price information varies by decision‐making context. In particular, price‐based effects for store brands are moderated by the contextual factors of category risk and retail image.

This study aims to increase the understanding of the emergence of a values-based (VB) premium private label (PL) brand reputation within a multiple-tier PL brand portfolio in retailing.

By building on the research on PLs, brand image, brand reputation and consumer values, this study creates a conceptual foundation for the emergence of VB PL brand reputation within a multiple-tier brand portfolio among consumers and examines the emergence of such reputation empirically using interpretive exploratory qualitative laddering interviews in the context of fast-moving consumer goods.

The findings of this study illustrate that the VB reputations of the premium PL product brand and the PL brand store intertwine, ultimately relating to two terminal values: pleasure and doing good. These reputations differ remarkably from the VB reputations of the economy PL brand and the umbrella brand of the retail chain (not doing good and financial security).

This study explains the emergence of VB brand reputation within a multiple-tier brand portfolio and introduces the use of the laddering technique in such research.

This study reminds brand managers to carefully design the relevant brand strategy for brands and their relationships under a brand umbrella.

Although much is known about PL brands and brand reputation, to the best of the authors’ knowledge, this study might be the first to increase the understanding of how a VB premium PL brand reputation emerges and accumulates from brand images within a multiple-tier brand portfolio.

This paper aims to understand empirically how shares of standard and premium private label (PL) products affect a retailer’s marketing mix decisions toward national brands (NBs).

Using a comprehensive store-level data set covering 52 categories and 130 stores of two retailer chains during 2003-2009, this paper examines how shares of standard and premium PLs affect retailer marketing strategies for NB retail prices, promotions and product assortments. The empirical analysis uses a simultaneous equations model estimated by the generalized method of moments approach and controls for endogeneity between PL shares and NB decisions and potential confounding variables including consumer, manufacturer and retailer factors.

Standard PL shares are associated positively with NB retail prices and negatively with NB promotions and assortments. In contrast, premium PL shares are associated positively with NB retail prices, promotions and assortments.

The results indicate that retailers make strategic NB decisions through multitier PLs. Specifically, the evidence suggests that retailers use standard and premium PLs differently in promotion and assortment decisions toward NBs. NB manufacturers need to be cognizant of the increasing marketing power of retailers through their multitier PLs.

Prior research has mainly focused on the role of PLs as a strategic weapon to gain power in the channel and its impact on NB pricing decisions in a single PL context. After accounting for potential confounding factors (retailer, consumer and manufacturer) and endogeneity, the authors find empirical evidence that retailers appear to leverage standard and premium PLs differently in some marketing mix decisions toward NB. In particular, the results reveal PL performance to be a determinant of retailer NB assortment decisions.

Marketers devote great efforts to maintaining brand value. However, brand value can come under attack in the absence of sufficient product performance and image differentiation in a process called unbranding. This paper aims to provide insights and guidelines that will give marketing managers tools to deal with variables that impact consumer decisions on whether to buy a national brand or a store brand product.

A consumer research study was based on a random, mall intercept with 188 respondents consisting of seven questions scored on a ten‐point scale. The results are presented on a set of graphs accompanied with some analysis of means (ANOM) applications.

Results indicated that a significant portion of consumers (from over 40 percent to a high of 85 percent) feel that the quality differences between branded and generic products have diminished and the price premiums charged by branded products are often no longer justifiable.

The findings of this study imply that in branded product premium image must be maintained and enhanced, otherwise it will be lost. In addition, the trend of brand value loss referred to as unbranding will vary significantly by and within a product category.

Branded products must maintain their superior consumer perception and product performance. Store or generic brand marketers should exploit the favorable price‐value relationship gained because of the loss of brand value through a process of store branding.

The new concept of unbranding is introduced together with research‐based recommendations for brand value protection strategies.

The purpose of this paper is to propose a theoretical model which investigates antecedents, consequences, and contingency factors of retailer own‐brand product advantage. The paper develops propositions and managerial implications.

It summarizes an empirical work related to the key constructs of the theoretical model and identifies gaps in the literature. The paper provides definitions of each antecedent and outcome of retailer own product advantage and discusses managerial implications of the proposed framework.

Retailers who have higher degree of customer participation, innovation, and brand orientations are likely to have a stronger own‐brand product advantage. In turn, those retailers are more likely to have loyal customers and superior own‐brand financial performance. These relationships will be influenced by retailer image, market power, number of national brands and category size, technology complexity, and competitive intensity.

Understanding the key outcomes of own‐brand product advantage will facilitate management's evaluation of current retail product development strategies. If outcomes of the current own‐brand strategy are not satisfactory, an assessment of customer participation, innovation, and brand orientation effectiveness may be warranted.

The authors are the first to define a retailer premium own‐brand. Based on the theory of resource‐based view, it is proposed a new theoretical framework that pinpoints three business orientations as antecedents of and customer loyalty and brand performance as consequences of retailer own‐brand product advantage. The framework also suggests some contingency factors at retailer, category, and market levels.

The purpose of this paper is to identify factors influencing customers' willingness to purchase new store brands.

The paper develops a 3×3 design to investigate the impact of price and quality positioning on the willingness to purchase new store brands in five product groups. A total of 990 respondents completed a questionnaire about store brand perception, aspects of purchasing behavior and willingness to buy. Data are analyzed with analysis of variance and partial least squares.

The paper finds that customers' willingness to buy new store brands differs between different product groups. It is lowest for product groups associated with high social risk. Accordingly, premium store brands are preferred for these categories. The influence of price is small and nonlinear. Furthermore, the attitude towards a specific store brand has a large impact on customers' willingness to purchase, while the attitude toward store brands in general is less important. The drivers influencing customers' attitude towards specific store brands depend on the respective product group.

The results indicate that price is not the only factor influencing customers' willingness to buy new store brands. Therefore, the results encourage retailers to position store brands also in premium segments, especially for product groups where social acceptance is important.

This paper differs from other papers in the literature in that it analyses factors influencing the success of new store brands. Furthermore, it analyzes many different potential influencing factors, namely product group, price and quality positioning, store brand perceptions, attitudes and aspects of purchasing behavior.