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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…

1982

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: 11 October 2021

Faruk Anıl Konuk

This study aims to examine the moderating role of private label product type (organic vs non-organic) on the relationships between trust transfer, price fairness, perceived value…

1665

Abstract

Purpose

This study aims to examine the moderating role of private label product type (organic vs non-organic) on the relationships between trust transfer, price fairness, perceived value and brand loyalty.

Design/methodology/approach

The empirical data were gathered with the structured questionnaire from two groups of respondents who had previously purchased organic and conventional private label products. The direct, mediating and moderating effects were analysed with structural equation modelling.

Findings

The findings confirmed the trust transfer between the retail store and private label brand. The results revealed that both store trust and trust in private label brand positively influence price fairness and which, in turn, elicits higher perceived value. Perceived value was also found to influence private label brand loyalty. The multi-group analyses revealed that the magnitude of the trust transfer was accentuated by organic food private label. Furthermore, the relation between trust in private label brand, price fairness and perceived value was also greater in organic food private label.

Originality/value

This study utilized the trust transfer theory and equity theory as a theoretical foundation to provide novel insights into the moderating influence of private label product type on the relationships between the antecedents of private label brand loyalty. The results of the research can help retailers to develop successful private label brand marketing strategies.

Details

International Journal of Retail & Distribution Management, vol. 50 no. 5
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 19 October 2022

Sunny Vijay Arora, Arti D. Kalro and Dinesh Sharma

Managers prefer semantic imbeds in brand names, but extant literature has primarily studied fictitious names for their sound-symbolic perceptions. This paper aims to explore…

Abstract

Purpose

Managers prefer semantic imbeds in brand names, but extant literature has primarily studied fictitious names for their sound-symbolic perceptions. This paper aims to explore sound-symbolic perceptions of products with blended brand names (BBNs), formed with at least one semantic and one nonsemantic component. Unlike most extant literature, this study not only estimates the effect of vowels and consonants individually on product perceptions but also of their combinations. The boundary condition for this effect is examined by classifying products by their categorization and attributes by their abstractness.

Design/methodology/approach

Through a within-subject experiment, this paper tested perceptions of products with BBNs having high-/low-frequency sounds. A mixed-design experiment followed with sound frequency, product-level categorization and attributes’ abstractness as predictor variables.

Findings

For BBNs, vowel sounds convey brand meaning better than the combinations of vowel and consonant sounds – and these convey brand meaning better than consonant sounds. Differences in consumers’ perceptions of products with BBNs occur when the degree of attributes’ abstractness matches product-level categorization, such as when concrete attributes match subordinate-level categorization.

Practical implications

Brand managers/strategists can communicate product positioning (attribute-based) through BBNs created specifically for product categories and product types.

Originality/value

This research presents a comparative analysis across vowels, consonants and their combinations on consumers’ perceptions of products with BBNs. Manipulation of names’ length and position of the sound-symbolic imbed in the BBN proffered additional contributions. Another novelty is the interaction effect of product categorization levels and attributes’ abstractness on sound-symbolic perception.

Details

Journal of Product & Brand Management, vol. 32 no. 3
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 23 April 2024

Annarita Colamatteo, Marcello Sansone and Giuliano Iorio

This paper aims to examine the impact of the COVID-19 pandemic on the private label food products, specifically assessing the stability and changes in factors influencing…

Abstract

Purpose

This paper aims to examine the impact of the COVID-19 pandemic on the private label food products, specifically assessing the stability and changes in factors influencing purchasing decisions, and comparing pre-pandemic and post-pandemic datasets.

Design/methodology/approach

The study employs the Extra Tree Classifier method, a robust quantitative approach, to analyse data collected from questionnaires distributed among two distinct consumer samples. This methodological choice is explicitly adopted to provide a clear classification of factors influencing consumer preferences for private label products, surpassing conventional qualitative methods.

Findings

Despite the profound disruptions caused by the COVID-19 pandemic, this research underscores the persistent hierarchy of factors shaping consumer choices in the private label food market, showing an overall stability in consumer behaviour. At the same time, the analysis of individual variables highlights the positive increase in those related to product quality, health, taste, and communication.

Research limitations/implications

The use of online surveys for data collection may introduce a self-selection bias, and the non-probabilistic sampling method could limit the generalizability of the results.

Practical implications

Practical implications suggest that managers in the private label industry should prioritize enhancing quality control, ensuring effective communication, and dynamically adapting strategies to meet evolving consumer preferences, with a particular emphasis on quality and health attributes.

Originality/value

This study contributes to the existing body of literature by providing insights into the profound transformations induced by the COVID-19 pandemic on consumer behaviour, specifically in relation to their preferences for private label food products.

Details

British Food Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 26 August 2021

Emma Beacom, Lynsey Elizabeth Hollywood, Christopher McLaughlin, Sinead Furey, Ruth Price, Una McMahon-Beattie and Amy Burns

The purpose of this study is to investigate the proportionality of market brand (MB) foods versus supermarket own brand (OB) foods sold on promotion and to compare their…

Abstract

Purpose

The purpose of this study is to investigate the proportionality of market brand (MB) foods versus supermarket own brand (OB) foods sold on promotion and to compare their healthiness.

Design/methodology/approach

An existing dataset containing nutritional information about a variety of foods on promotion (n = 6,776) from 48 stores across 8 retail chains in Northern Ireland (NI) was reanalysed. Product healthiness was measured using a score aligned to the Food Standards Agency's Front of Pack nutrient labelling system. MBs and OBs were considered as a whole and in their respective subsets–international/national and regional MBs, and premium, mid-market and value tiered OBs.

Findings

Results found a balance in favour of health (52.4% amber/green versus 47.6% red) across retailers' promotions in NI. Further, OB products were often found to be superior to MBs with regards to overall healthfulness, and regional brands were found to be less healthy than international/national brands.

Research limitations/implications

Findings rationale further retail research to compare nutritionally OB and MB product types, and further consumer research regarding important attributes of OBs.

Practical implications

Retailers should communicate the comparative healthiness of their OBs in comparison to MB alternatives, in addition to communicating comparative price savings. There is opportunity for retailers to increase visibility of mid-market and value OB tiers, and for regional MBs to improve the nutritional profile of products in line with the consumer trend for health.

Originality/value

This study provides a contribution by using data on OBs and MBs on promotion, and by investigating the nutritional differences between different tiers of OB and MB products.

Details

British Food Journal, vol. 124 no. 4
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 18 August 2020

Jérôme Lacoeuilhe, Didier Louis, Cindy Lombart and Blandine Labbé-Pinlon

The research aim is to investigate the impacts of comparative ads used by retailers to compare the prices of their store brand (SB) products with those of equivalent national…

Abstract

Purpose

The research aim is to investigate the impacts of comparative ads used by retailers to compare the prices of their store brand (SB) products with those of equivalent national brand (NB) products. More specifically, this research examines if consumers perceive retailers as legitimate when they use comparative ads to compare the prices of their SB products to those of equivalent NB products, and how effective are these comparative ads in terms of actual purchases. This research also explores for which SB type (economy, standard or premium) and consumers are comparative ads most effective.

Design/methodology/approach

This research investigates consumers' reactions to comparative ads used by retailers to compare the prices of their SB products with those of similar NB products through an experiment within a store laboratory. A between-subject design has been used. The participants of the first/second/third group (n1 = 93/n2 = 92/n3 = 91) were exposed to ads comparing the prices of retailer's economy/standard/premium SB food products with their equivalent NB food products, in the same product category. The participants of each group carried out a shopping trip in the store laboratory.

Findings

Consumers consider retailers legitimate when they use comparative ads. This favourable evaluation improves their attitude towards these ads. However, the impact of retailers' legitimacy of (1) means, (2) objectives and (3) historical legitimacy on consumers' attitude towards comparative ads depends on the SB type (economy, standard and premium). By contrast, comparative ads are effective in terms of consumers' attitude towards these ads and towards SBs, along with purchase intention and actual purchases of these brands, whatever the SB type. Lastly, this research highlights that comparative ads for SBs are mainly directed at consumers with high levels of price consciousness and resistance to NBs.

Research limitations/implications

This research only tested the impact of direct comparative advertising and an extrinsic attribute (price). The research experiment was conducted on a convenience sample, which limits its external validity.

Practical implications

This research encourages retailers to use comparative advertising for their SBs (economy, standard and premium) for several reasons. First, this study suggests that comparative advertising is an effective tool for retailers to shape or improve consumers' attitude towards SBs, via their attitude towards comparative ads. Second, this research proposes that comparative advertising contrasting the prices of SB products with those of NB products could increase retailers' in-store sales of their SBs. Lastly, this research underlines that comparative advertising is particularly effective for consumers with high levels of price consciousness and resistance to NBs.

Originality/value

This research supplements previous research in the field of SBs and comparative advertising. Previous research on comparative advertising has examined NBs exclusively (Dianoux et al., 2013; Beard, 2018). Comparisons between SBs and NBs are lacking. This research thus validates the use of this specific form of communication for SBs, given the paucity of studies of the effects of the use of mass media communication on SBs (Nenycz-Thiel and Romaniuk, 2014; Gendel-Guterman and Levy, 2017).

Article
Publication date: 8 February 2016

Siddhartha Sarkar, Dinesh Sharma and Arti D. Kalro

The purpose of this paper is to present different naming, packaging, and pricing strategies adopted by private label (PL) retailers in India. This study also aims to identify…

2011

Abstract

Purpose

The purpose of this paper is to present different naming, packaging, and pricing strategies adopted by private label (PL) retailers in India. This study also aims to identify preferred private label brand (PLB) categories, factors influencing their selection, and the importance of cues in evaluation of PLBs. The overall purpose is to identify important areas for future research of PLBs in the wake of organized retail growth in an emerging economy (India is the context here).

Design/methodology/approach

This study is based on in-store observations of major Indian retail chains, longitudinal analyses of customers’ shopping bills, qualitative analyses of consumer interviews, and focus group discussions.

Findings

The results indicate that retailers primarily adopt “Sub-branding” (using the store name along with a separate brand name) and “House of Brands” (using a separate brand name only) strategies to sell PLBs in the Indian market. Groceries, food and beverages, and apparel are the preferred categories in PLB. Price, quality, and convenience are the major factors influencing PLB. Taste, ingredients, packaging, price, brand name, and store name are the main factors that are used to evaluate PLBs.

Research limitations/implications

Due to the qualitative analyses and interpretation, there are limitations to this study which need to be empirically validated.

Practical implications

This research has implications for organized retailers in understanding the various strategies used for PLBs in India.

Originality/value

This study is a novel study for documenting the PLB strategies adopted by organized retailers in India. It also uses a longitudinal exploratory approach to further understanding the consumption of PLBs in India.

Details

International Journal of Retail & Distribution Management, vol. 44 no. 2
Type: Research Article
ISSN: 0959-0552

Keywords

Content available
Book part
Publication date: 30 July 2018

Abstract

Details

Marketing Management in Turkey
Type: Book
ISBN: 978-1-78714-558-0

Article
Publication date: 23 August 2011

Scott Sherman and Tracy Tuten

The choice facing a wine consumer is one of dizzying options with thousands of wine brands available. Packaging and labeling are among those cues consumers use when choosing…

3569

Abstract

Purpose

The choice facing a wine consumer is one of dizzying options with thousands of wine brands available. Packaging and labeling are among those cues consumers use when choosing wines. The purpose of this paper is to better understand the influence of two labeling variables – design genre and brand naming convention – on perceptions of wine and wine choice by occasion. In particular, three types of label design and naming conventions (traditional, contemporary, and novelty) are examined.

Design/methodology/approach

A 3*3 (three versions of visual design and three brand naming conventions) factorial design was used to expose participants to a set of three wine label design variations. Participants viewed wine labels online at www.ratethelabel.com and then completed a web‐based survey designed to measure the influence of label design and brand name on wine perceptions, purchase intent by wine use occasion, and the relative importance of factors affecting wine choice.

Findings

Despite the popularity of novelty designs and names, participants preferred traditional labels and names. Label design and name were not as influential as wine type, brand familiarity, and price for wine choices made across four wine use occasions. Label design and brand name likeability mattered only for gift choices.

Practical implications

For wineries developing or revising labels, traditional designs should be considered despite the current trend to use novelty labels.

Originality/value

This study assessed consumer response to a trend in the wine industry – the use of novelty designs and names.

Details

International Journal of Wine Business Research, vol. 23 no. 3
Type: Research Article
ISSN: 1751-1062

Keywords

Article
Publication date: 10 April 2017

Hsuan-Yi Chou and Tuan-Yu Wang

The purpose of this paper is to investigate the effects of brand strategies and spokesperson expertise on consumer responses to hypermarket private-label products by combining…

2204

Abstract

Purpose

The purpose of this paper is to investigate the effects of brand strategies and spokesperson expertise on consumer responses to hypermarket private-label products by combining concepts from consumer attitude change, resistance to persuasion and construal level theory (CLT).

Design/methodology/approach

Two experiments were conducted to test the propositions.

Findings

Consumers perceived the low-price (low-quality) characteristic of private-label products as a high-level (low-level) construal consideration when forming purchase decisions. Product relevance negatively affected consumers’ perceived product distance. Compared with store brands, separate brands enhanced consumer product attitudes and purchase intentions. Brand strategies and product distance affected consumer message-processing mindset (i.e. resistant to persuasion or open to persuasion) when processing advertisements, ultimately moderating the effect of spokesperson expertise.

Practical implications

The findings are useful for hypermarkets seeking to implement brand strategies and select spokespersons for private-label products. Additionally, the findings show that advertisers should design advertising elements to match consumers’ construal approaches to product-related information.

Originality/value

This study contrasts two common hypermarket brand strategies, identifies the construal levels corresponding to the dual roles of private-label products and expands CLT dimensions. Additionally, the results bridge two research approaches (persuasion and resistance to persuasion) and demonstrate the pivotal influence of brand strategies. The findings also advance understanding of the effects of spokesperson expertise and contribute to resistance theory by showing how to effectively reduce attitude certainty after resistance to persuasion.

Details

European Journal of Marketing, vol. 51 no. 4
Type: Research Article
ISSN: 0309-0566

Keywords

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