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Private label brands may be in danger as a result of recent changes in the marketing strategies used by private label firms. The primary competitive advantage of private label brands, good quality at low prices, may be lost if private label firms continue to modify and expand how their brands are marketed. Specifically, changes in private label brands′ advertising, packaging, sales promotion, and product improvement strategies indicate that private label brands are moving closer than ever to manufacturer brand status. To the extent that these changes result in higher average retail prices and/or lower gross margins for retailers, the advantages of private brands to both consumers and distributors will diminish, illustrating that the historical “wheel of retailing” hypothesis may be applicable to private label brands. Investigates the aforementioned trends and provides suggestions for manufacturers and retailers for future brand management strategies.

This study analyses direct effects of risk-related factors on perceived quality for private labels.

A total of 159 usable data was collected through survey, using mall intercept method in one regional retail chain in Bosnia and Herzegovina.

The results confirm that the perceived risk has a significant and negative impact on consumers’ perceptions of the quality of private labels, and that the financial risk, performance risk, and physical risk are significant determinants of overall perceived risk, thus indirectly influencing the perception of the quality of these brands.

This chapter shows that the perceived quality of private labels is significantly determined by the perceived risk to which consumers are exposed. The findings of this research can help retailers in terms of adequately defining marketing policies aimed at reducing the perceived risk that consumers are exposed to when purchasing their own brands.

This paper aims to use Q methodology to investigate Millennial perceptions toward private label or national brand apparel.

Q methodology was chosen to identify factors, which correspond to patterns of perceptions prevalent among Millennials. Participants were supplied with 14 statements that they sorted into two Q sorts – One representing perceptions of private label and the other representing perceptions of national brands. The Q sorts were completed through Qualtrics and participants answered open-ended questions on the placement of each statement within each Q sort.

Two factors emerged on private labels, highlighting patterns in price consciousness and uniqueness (acknowledged as patterns surrounding the desire for particular apparel characteristics). Three factors arose for national brand apparel, emphasizing the need for national brands to provide consumers with product security, quality and uniqueness (as identified through the unpreferred qualities national brands typically exhibit).

This study illustrates the various viewpoints retailers must consider when marketing apparel to a specific target demographic. In addition, a single perception (uniqueness) was found to connect motivations, which led to the development of a model for future inquiry.

Despite complete Q sorts and qualitative statements, participants' unfamiliarity with Q methodology and the sorting action of statements could be considered a limitation. The use of MTurk is also considered a limitation owing to the anonymity and possible deception of the workforce.

Private label brand personality growth has many retailers expanding their brand portfolios. Based on the findings of this study, specific opportunities are highlighted for the expansion and marketing of private labels and brand labels based on specific perceptions of a broad Millennial cohort.

This paper aims to gain a better understanding of how Swedish branded goods manufacturers (BGMs) deal with the increased usage of private labels.

The approach takes the form of answering the three research questions of this study: how private labels are viewed by BGMs on the Swedish market; how Swedish BGMs strategically respond to the increases in private labels; and how the benefits and drawbacks of these strategic responses are perceived by Swedish BGMs. A contrasting multiple case study of four Swedish companies in the fast‐moving consumer goods (FMCG) industry was used.

The perceived advantages of private labels are connected to their overall control of the market in which they operate, whereas the advantages of BGMs are seen to be linked to product development and superior brand reputation. BGMs respond to private labels by taking them seriously and striving to increase the perceived distance of their brands from private labels in the eyes of the consumers. The overall benefit of these strategies is perceived to be preparedness for increased private label competition, while the drawbacks vary between companies.

In addition to empirical testing based on previous research on private label competition in a new setting, the study also presents suggestions for future research and the implications of the findings for managers.

Findings indicate that BGMs should take the emergence of private labels seriously, while at the same time striving to maintain good business relationships with the retailers.

The study provides insights into the competitive situation between private labels and the manufacturer brands in the Swedish FMCG market.

The subject area is marketing strategy.

The case is well suited for MBA and executive MBA class on retailing management, strategic management, marketing strategy and brand management.

Retailers see private label as a strategic weapon against brand manufacturer to increase store profitability, but looking at the private label from brand manufacturer’s perspective, determinants and strategic choices are even more complex than that of a retailer. The case is about MegaTex Ltd.’s strategic call for private label production opportunity by Maximus Fashion and Retail Limited. The case discusses the dilemma of MegaTex for manufacturing private label in spite of having their own brand in competition. The case compels to drive strategic questions such as in what circumstances brand manufacturers should concentrate on manufacturing their own brand or should they concentrate on both private label and their brand? Or, as an alternative, should they purely dedicate themselves in manufacturing private label and stop manufacturing their own brand?

Participants will be able to understand the concept and economics of private label. Participants will be able to understand the determinants and strategic choices for private label from retailer’s and manufacturer’s perspective. Participants will be able to understand the rationale for which brand manufacturer opts for manufacturing private label in spite of having its own brand in competition. Participants will be able to identify the situations under which a brand manufacturer should concentrate on manufacturing his/her own brand or both private label and his/her brand.

Teaching notes are available for educators only. Please contact your library to gain login details or e-mail support@emeraldinsight.com to request teaching notes.

CSS 11: Strategy.

The purpose of this paper is to examine empirically the brand impact of consumer knowledge regarding a common supplier and shared product specifications between manufacturer and private label brands.

The study uses three fast‐moving consumer goods in an experimental setting.

The study finds that knowledge about common sourcing and shared specification decreases perceptual gaps between private labels and manufacturer brands and improves attitudes towards the retailer.

The study uses a student sample, although all product categories and brands tested are popular with this demographic, and they are a key target market for the tested industries.

Manufacturer brands that supply private labels need to make sure that this information does not reach consumers and/or ensure their own brand version remains superior to the private label. Retailers that use well‐known manufacturer brands as suppliers of their high‐quality private labels might wish to share this information with customers as a means of improving attitudes towards the private label and retailer brands.

This paper builds on earlier platform sharing research and shows the dangers and opportunities of sharing product specification across brands with differing reputations and prices.

The purpose of this study is to investigate the influence of private label resources possessed by a supermarket retailer on the shopping behavior of loyal customers. The study examines whether or not private label products can help in the overall enhancement of product category performance.

The paper examines the performance of a supermarket retailer in the Northeast United States that operates over 100 stores and generates a total yearly sales volume in excess of $3 billion. Data obtained from the Supermarket's point of sale information were used. The paper then developed a research model from the literature review and used structural equation modeling to analyze the data.

The findings show that overall dollars spent by loyal customers significantly impacted overall profitability.

The data collected pertained to the supermarket's grocery department that is comprised of center store dry grocery products, frozen food products, and refrigerated dairy products. Perishable departments such as deli, seafood, meat, bakery, floral, general merchandise, health and beauty care, etc. were not researched in this study. Also, data obtained were from one individual supermarket chain.

Although private label products may represent increased profitability for retailers, consumers prefer a full assortment of merchandise; an over emphasis on private label brands may result in diminishing category performance.

The paper examines the performance of a supermarket retailer in the Northeast United States that operates over 100 stores and generates a total yearly sales volume in excess of $3 billion. The use of scanner data has value as it measures actual shopping behavior.

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.

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.

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.

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.

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.

This study aims to determine which factors underlie the store attributes that contribute to a particular food store image. Furthermore, heightened recent attention to private labels in the food retailing industry creates the need to assess whether the factors vary, depending on customers' brand proneness and their impact on key marketing performance variables (satisfaction, attitudinal loyalty, behavioural loyalty).

The proposed analysis features 211 questionnaires out of a sample of 391 consumers surveys gathered in four different store formats; 137 of which were completed by consumers who admitting being private label prone, and 74 pertaining to consumers who considered themselves national brand prone. The underlying food store factors were identified using factorial analysis of principal components, and their influence on consumers' satisfaction and loyalty was evaluated with linear parametric regression models.

Store attributes related to providing sufficiently convenient purchasing experiences and a special atmosphere are most important for private label brand-prone consumers and enhance their satisfaction, attitudinal loyalty and behavioural loyalty. For national brand-prone consumers, attributes related to quality are more important for enhancing marketing performance variables.

The results enable a clear identification of food store factors that vary with the consumer segment being considered (private label prone consumers vs. national brand prone), as well as their differential impacts on key marketing performance variables.

To appeal to private label-prone consumers, food retailers should put particular emphasis on the attributes of the store itself, especially those that enhance convenience and the pleasantness of the store atmosphere. To attract national brand-prone consumers, they primarily need to highlight aspects related to quality.

This research emphasises the importance of building competitive strategies in food retailing based on: an increased knowledge about the attributes and factors that food consumers value more highly; and brand type preferences.

This research attempts to investigate the differences of consumer perceptions on product quality, price, brand leadership and brand personality among national brands, international private labels and local private labels. It aims to use product categories as the moderator of the preceding perceptions.

Data were collected outside the entrances of the main rail station of Taipei, Taiwan. A systematic sampling was adopted and 254 questionnaires were eventually collected.

The findings revealed that on the whole national brands were perceived as significantly superior to international private labels, while international private labels were perceived as being superior to local private labels in terms of all perceptions except price perception. The findings also revealed that product categories moderated price and brand personality perceptions across the three brand types, while product categories failed to moderate the effect of the three brands types on quality and brand leadership perceptions.

This research represents one of the few pioneer works that empirically investigate the aforementioned issues.