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The purpose of this research is to examine the potential contribution of private branding to the service sector, and to integrate private branding into the SERVQUAL model.
Abstract
Purpose
The purpose of this research is to examine the potential contribution of private branding to the service sector, and to integrate private branding into the SERVQUAL model.
Design/methodology/approach
A total of 300 customers of a health maintenance organization (HMO) were asked about the five dimensions of the service‐quality model and about several aspects of their HMO's private brand.
Findings
The study finds that satisfaction with service quality among subjects who were aware of the HMO's private brand was higher than that of unaware subjects when asked directly. In addition, a positive relationship was found between the perceptions of service quality in the HMO and the evaluation of a private brand in the HMO those customers who were aware of the private brand. The data analysis suggests that private branding constitutes an additional (sixth) dimension in the SERVQUAL model.
Research limitations/implications
This research was conducted during the initial stages of the market penetration of the HMO's private brand.
Practical implications
HMOs, and other service providers, should consider private branding as a pivotal strategy in reinforcing service quality.
Originality/value
This research is of importance for service providers because it identifies private branding strategy as having significant marketing potential for improving service quality.
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Rajiv Vaidyanathan and Praveen Aggarwal
Current research on brand alliances has focused primarily on alliances between two known, national brands. However, there is significant benefit to both parties in an alliance…
Abstract
Current research on brand alliances has focused primarily on alliances between two known, national brands. However, there is significant benefit to both parties in an alliance between a national brand and a private brand. Such alliances are gaining importance in the industry but have not been studied by marketers. The basic question explored in this study is whether using a national brand ingredient can benefit a private brand without hurting the national brand. First, a theoretical framework to explain how consumers may react to such an alliance is presented. Next, an experiment was conducted which showed that a private brand with a name brand ingredient was evaluated more positively. However, the evaluation of the national brand was not diminished by this association. Implications and future research directions are discussed.
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Ram Herstein, Kalanit Efrat and Eugene D. Jaffe
The aim of this paper is to discuss the import of private branding strategy for retailers, manufacturers and customers. It seeks to focus on private branding strategies in the…
Abstract
Purpose
The aim of this paper is to discuss the import of private branding strategy for retailers, manufacturers and customers. It seeks to focus on private branding strategies in the emerging MEDA markets, and, using Israel as a case study, aims to identify why the huge potential of private brands has not been exploited in these countries.
Design/methodology/approach
Both secondary data and empirical studies of Israeli exporters and chain store managers were conducted to determine what strategies are used to market private brands in developed, emerging and developing MEDA countries. Also included is a case study based on an analysis of four separate periods of the marketing of private brands in Israel, which are very similar to those seen in other emerging MEDA countries such as Greece and Turkey.
Findings
A review of private branding strategies in the MEDA countries reveals three different markets, each one managed differently: developing, emerging, and developed. The most attractive MEDA markets with regard to private brands for retailers and manufacturers are the emerging countries, which have the most rapid growth potential in this region.
Originality/value
Few studies are to be found in the literature that are based on the development of private labels in emerging countries. Moreover, the paper is the first to survey such development in Israel, one of the most developed countries in the Mediterranean.
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Robert A. Lupton, David R. Rawlinson and Lori A. Braunstein
This exploratory research paper aims to contribute to the international marketing and brand development literature by demonstrating that significant cross‐national differences…
Abstract
Purpose
This exploratory research paper aims to contribute to the international marketing and brand development literature by demonstrating that significant cross‐national differences exist between Chinese and US university students regarding beliefs and perceptions of private label branding.
Design/methodology/approach
A total of 1,070 usable surveys were collected in the USA and 252 in China. Data analysis was conducted using SPSS data analysis software. The US student sample was collected from a comprehensive university located in the western USA. The Chinese sample was collected from a large university in Hefei. Hefei is the capital city of Anhui Province and a center for higher education.
Findings
The researchers compared US and Chinese university students in four areas: important attributes when purchasing food‐related products; beliefs about private label brands and price loyalty; perceptions about private label brands; and recognition of private label brands. US and Chinese respondents had statistically significant differences when addressing beliefs and perceptions concerning private label brands. Most notable is the difference concerning product pricing: US consumers indicate that price has a greater effect on the decision to purchase when compared with Chinese consumers. The data seem to indicate that Chinese consumers believe that private label food products may be of inferior quality compared to manufacture brands. Additionally, the data indicate indirectly that Chinese respondents either do not have an understanding of private label products, or that private label names are not recognized as such.
Research limitations/implications
One limitation of this paper is that the data may indicate the non‐availability of private label products to Chinese consumers, rather than a perception that private label products are of lower quality. Additionally, this study documents perceptions regarding private label products, not why respondents perceive private label products in a certain way. A final limitation is that respondents are university students that, while they are excellent candidates, they probably do not currently hold the role of main food purchaser for their families. Future research would benefit from a broader demographic that includes non‐students as well as a larger number of private label categories. Comparing how marketers educated consumers regarding private label products in western markets, and how private label products are integrated into western markets could be used as a template for a successful rollout in Asian markets.
Originality/value
While this study was exploratory in nature, and narrow in scope, the possibilities of long‐term research in private label branding in emerging market economies is quite exciting. Will the Chinese adopt private label products, as US consumers have done? To this end, a proverb from Deng Xiaoping seems appropriate: “Black cat or white cat: If it can catch mice, it's a good cat.” Whether a private label brand or a manufacture brand, it is up to marketers to help the Chinese consumers see value in both types of brand offerings.
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Ram Herstein, Netanel Drori, Ron Berger and Bradley R. Barnes
Private-label goods are now available in more than 55 countries worldwide and their total sales value is estimated to be in excess of one trillion US dollars. The prevalence of…
Abstract
Purpose
Private-label goods are now available in more than 55 countries worldwide and their total sales value is estimated to be in excess of one trillion US dollars. The prevalence of such goods, however, drastically differs across countries. Whilst market share in some developed economies exceeds 50 percent, penetration appears much lower in emerging economies. The purpose of this paper is to investigate marketing issues surrounding such low-penetration levels in emerging markets.
Design/methodology/approach
In-depth interviews were conducted with: 36 store managers and the marketing director of a large emerging market retail chain.
Findings
Eight factors were found to impede the retail chain’s vision regarding implementation of the private branding strategy.
Practical implications
Several implications are extracted from the study, mainly in the context of emerging markets that managers should consider in order to improve their private branding strategies.
Originality/value
Although some research has aimed to shed light concerning the significance of private brands from retailers’ perspectives, such research has not tended to address the issue of how to implement private brand strategies in emerging markets. To bridge the gap, this study investigates these issues from a retail chain management perspective in order to potentially leverage performance advantages associated with the nurturing of private-label branded goods.
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This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.
Abstract
Purpose
This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.
Design/methodology/approach
This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.
Findings
The adoption by retail chains of private brands is big business in developed economies. Such products provide greater profit margins, more control over quality and supply, and improved leverage with existing suppliers. Western countries, particularly in Europe, have adopted private brands as a key aspect of boosting the performance of any type of retail chain. Yet in emerging markets, the use of private brands is significantly lower. Looking to understand why this is the case, and to provide research in an area that has tended in the past to only consider developed economies, Herstein et al. (2017) have looked into the food retail industry in Israel to understand why private brands are proving less successful. Because of the potential for private brands to boost the performance and profits of retail chains, as well as the economy of local areas and the nation as a whole, it is important to understand this disconnect between private brand success in developed and emerging markets.
Practical implications
The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations.
Originality/value
The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.
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The purpose of the paper is to present a review of the existing research themes in the area of retail branding, and note how these have developed as the conceptualisation of …
Abstract
Purpose
The purpose of the paper is to present a review of the existing research themes in the area of retail branding, and note how these have developed as the conceptualisation of “branding” in retailing has itself evolved.
Design/methodology/approach
This paper reviews existing research themes within retail branding. There is a vast body of academic literature on branding, or aspects of branding in retailing. The initial focus of academic work was upon the product perspective via studies of the store brand. This body of work is summarised under five broad themes – the characteristics of store brand prone consumers and the product attributes which attract consumers; the growth of and motivations for retail brand development; the role of changing channel relationships and behaviours on store brand development; intra‐category brand relationships; and the concept of copycat brands. From this initial, rather narrow, perspective research has evolved, taking on a wider view the brand in retailing which in turn has encompassed the store and the organisational perspectives.
Findings
The evolution of branding in retailing from studies of store brands to the exploration of the retail‐er as a brand has been matched with a widening of the conceptualisation of the brand in retail research: from the product as a brand to the store as a brand and most recently to the organisation as a brand. This has implications for future research in terms of the themes under investigation, research design, and the research methodologies employed.
Originality/value
The paper summarises the themes in existing retail branding research, notes the evolution of thought in retail brand research and suggests areas for future research.
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Jianjun (John) Zhu, Thomas S. Gruca and Lopo L. Rego
This study examines the empirical relationship between four broad antecedents of brand equity (branding strategy, brand structure, brand positioning and target market) and two…
Abstract
This study examines the empirical relationship between four broad antecedents of brand equity (branding strategy, brand structure, brand positioning and target market) and two separate dimensions of revenue premium: price premium and volume premium. Our modeling framework aims to explain how different antecedents of brand equity influence the realized velocity and margin of branded product sales, key drivers of operating cash flow. Our generalizable empirical analyses are based on a representative dataset of over 6,500 brands, across 200 consumer-packaged goods categories, spanning three years. We find that only 20% of brands command revenue premiums, for which volume premiums are the critical determinant. Branding strategies and brand structure primarily impact volume premium. In contrast, brand positioning has little effect. Target market substantially affects both premiums. Overall, these four elements account for 73% and 69% of the explained variations in price and volume premiums, respectively. This study provides generalizable, important, and novel insights for the theory and practice of brand management regarding price positioning and extending brands into new categories.
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This article examines the strategic, legal, and researchimplications of trademark decisions in an international context. Thefocus of the investigation is on the strengths and…
Abstract
This article examines the strategic, legal, and research implications of trademark decisions in an international context. The focus of the investigation is on the strengths and limitations of each branding strategy (e.g., brandless product, private brand, multiple brands for a single market and multiple markets etc.). The legal dimension of international branding, a topic usually ignored in the marketing literature in spite of its significance, is also covered.
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Hugues Seraphin, Anca C. Yallop, Alexandru Capatîna and Vanessa GB Gowreesunkar
The purpose of this study is to investigate the link between history (heritage) and tourism marketing (destination branding). More specifically, the paper focusses on how heritage…
Abstract
Purpose
The purpose of this study is to investigate the link between history (heritage) and tourism marketing (destination branding). More specifically, the paper focusses on how heritage is used by private- and public-sector tourism organisations of post-colonial, post-conflict and post-disaster (PCCD) destinations in their branding strategy. In particular, the paper investigates how these organisations use heritage in their branding and logo design.
Design/methodology/approach
Within the paradigm of theory building and exploratory approach, this conceptual study is based on a narrative literature review and analysis of research and secondary data on Haiti. The study uses visual research methods to examine and reveal the basis and composition of logos of both private- and public-sector organisations in Haiti.
Findings
The findings of this paper suggest that capturing the essence of the destination is critical for any visual identification (i.e. logos), and that the visual identification can either adjust representation of past events to the time being (heritage) or move away from the past with clear expectations for the future. Such findings are reflected within the new marketing strategies adopted by the Haitian destination marketing organisation (DMO) and a private resort that we used as examples. Both moved from an idiosyncratic identity-based logo to a universal “sea-and-sun” stereotyped one that goes against heritage for which authenticity is the most important criterion.
Practical implications
The findings of this research may help destination managers in general, and DMOs in PCCD destinations in particular, to design logos aligned with their marketing and branding strategies. The findings of the paper may also assist industry experts in designing logos that communicate with potential tourists, by leveraging heritage to influence their emotion and decision making.
Originality/value
This paper represents one of the first papers in tourism research that examines branding strategies of both public and private sectors in the context of Haiti. The research contributes to the body of knowledge on heritage and destination marketing by exploring the role of heritage in the Caribbean area’s branding and marketing strategies.