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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: 1 December 2006

Rick Ferguson

The purpose of this paper is to examine the effectiveness of retail privatelabel credit cards in a crowded marketplace. It offers ideas, citing examples from successful…

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Abstract

Purpose

The purpose of this paper is to examine the effectiveness of retail privatelabel credit cards in a crowded marketplace. It offers ideas, citing examples from successful retailers, for improving the effectiveness of credit cards as a loyalty tool.

Design/methodology/approach

The paper examines the strategy behind Gap Inc.'s private label credit card, which allows customers to earn rewards for shopping at Gap, Banana Republic and Old Navy stores. It also examines other retail card programs, including quotes from program leaders who share their ideas.

Findings

Statistics are cited which indicate how crowded the marketplace currently is for private label credit cards. By closely examining successful credit card programs, and by interviewing industry leaders, the importance of competitive differentiation in this marketplace is proved.

Practical implications

The reader will walk away with some specific ideas for improving the effectiveness of their private label credit card program. Armed with the knowledge of the scope and size of the private label credit card market, readers should gain insight that will improve their decision making about their own program.

Originality/value

The paper takes a look at how private label credit cards are currently used as loyalty marketing tools, and follows with suggestions on how to incorporate the strategies of some major retailers into existing programs.

Details

Journal of Consumer Marketing, vol. 23 no. 7
Type: Research Article
ISSN: 0736-3761

Keywords

Article
Publication date: 2 February 2015

Cristina Calvo Porral and Mark F Lang

In today’s highly competitive consumer marketplace, developing and managing successful private label offerings has become a priority for many retailing companies. The purpose of…

7416

Abstract

Purpose

In today’s highly competitive consumer marketplace, developing and managing successful private label offerings has become a priority for many retailing companies. The purpose of this paper is to analyze product, retailer, and individual factors from the private label brand that influence consumers’ loyalty and purchase intention; along with the influence of the manufacturer identification on the product package on purchase intention.

Design/methodology/approach

A structural equation model is run on a sample of 362 consumers, and a multi-group comparison is developed to study the role of manufacturer identification.

Findings

Findings indicate that the influence of private label image and perceived quality on purchase intention are partially mediated by loyalty and moderated by manufacturer identification. Results also reveal that store image and corporate reputation enhance private label image and perceived quality.

Originality/value

This study provides useful insights to advance the understanding of private label branding and guidance to retailers who should consider store image and company reputation when designing branding strategies.

Details

British Food Journal, vol. 117 no. 2
Type: Research Article
ISSN: 0007-070X

Keywords

Book part
Publication date: 27 September 2021

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.

Details

Marketing Accountability for Marketing and Non-marketing Outcomes
Type: Book
ISBN: 978-1-83867-563-9

Keywords

Article
Publication date: 2 October 2017

Catherine Sutton-Brady, Tom Taylor and Patty Kamvounias

The Australian supermarket industry has long been dominated by two players – Coles and Woolworths. Most recently this dominance has increased significantly and the “Big 2” have…

2746

Abstract

Purpose

The Australian supermarket industry has long been dominated by two players – Coles and Woolworths. Most recently this dominance has increased significantly and the “Big 2” have used their power more effectively and have introduced an ever-increasing number of “private label” products on supermarket shelves. This study aims to investigate the effect these products have had on the relationship between the supermarkets (buyers) and their suppliers.

Design/methodology/approach

This qualitative study used in-depth, high engagement interviews with a range of suppliers. An extensive data analysis process was carried out to ensure the coding of the key insights into themes, which helped to answer the aims and objectives of the research.

Findings

A key contribution of this study has been to highlight the ability of supermarket chains to increase existing dominance by using their ever-increasing private label brand portfolio. The findings indicate an uncertain future for food suppliers, with the situation likely to continue to worsen further as the supermarkets continue to exercise and abuse their power.

Originality/value

This paper’s main contribution lies in providing a greater understanding of the significance of the effect of private labels on relationships and the implications of these effects. The impact of the supermarket dominance on innovation is especially interesting, given that this has not been previously discussed in the literature. Additionally, the deterioration in trust is significant in this context and to an extent that is rarely seen.

Details

Journal of Business & Industrial Marketing, vol. 32 no. 8
Type: Research Article
ISSN: 0885-8624

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: 1 April 1996

David Pollitt

This special “Anbar Abstracts” issue of the Journal of Product & Brand Management is split into ten sections covering abstracts under the following headings: Marketing strategy;…

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Abstract

This special “Anbar Abstracts” issue of the Journal of Product & Brand Management is split into ten sections covering abstracts under the following headings: Marketing strategy; Customer service; Pricing; Promotion; Marketing research; Product management; Channel management; Logistics and distribution; New product development; Purchasing.

Details

Journal of Product & Brand Management, vol. 5 no. 4
Type: Research Article
ISSN: 1061-0421

Article
Publication date: 7 August 2007

Rick Ferguson and Kelly Hlavinka

This article aims to examine US loyalty marketing industry size and analyzes growth trends.

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Abstract

Purpose

This article aims to examine US loyalty marketing industry size and analyzes growth trends.

Design/methodology/approach

The article provides a discussion on COLLOQUY's benchmark‐setting measurement.

Findings

US loyalty rewards program membership has reached 1.3 billion, according to COLLOQUY research that provides the first comprehensive census‐taking of loyalty marketing since the modern loyalty era began with frequent flyer incentives in 1981. COLLOQUY's benchmark‐setting measurement, based on a fourth‐quarter 2006 analysis of a dozen business sectors, reveals that the average US household belongs to 12 loyalty programs. In a key finding, the COLLOQUY census shows that “active participation” in loyalty programs is a blended average of 39.5 percent across all sectors analyzed, a number that COLLOQUY experts characterized as “dismal.” Of the 12 programs per average household, 4.7 yield active participation. The census results raise a major question. Does the participation data mean the loyalty empire has reached a saturation point? The response from COLLOQUY experts: “Loyalty memberships are flying dangerously high. Fat membership roles may look good in a press release, but active loyalty program members are the only members who count.”

Practical implications

The loyalty marketing industry has experienced significant growth. Low active participation rates signal that millions of customer files in a database do not signify a successful loyalty strategy. Smart enrollment strategies should suggest a finite population of best or highest potential spenders.

Originality/value

The article provides proprietary business‐to‐business research on the size and scope of the US loyalty marketing industry.

Details

Journal of Consumer Marketing, vol. 24 no. 5
Type: Research Article
ISSN: 0736-3761

Keywords

Article
Publication date: 1 January 1983

R.G.B. Fyffe

This book is a policy proposal aimed at the democratic left. It is concerned with gradual but radical reform of the socio‐economic system. An integrated policy of industrial and…

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Abstract

This book is a policy proposal aimed at the democratic left. It is concerned with gradual but radical reform of the socio‐economic system. An integrated policy of industrial and economic democracy, which centres around the establishment of a new sector of employee‐controlled enterprises, is presented. The proposal would retain the mix‐ed economy, but transform it into a much better “mixture”, with increased employee‐power in all sectors. While there is much of enduring value in our liberal western way of life, gross inequalities of wealth and power persist in our society.

Details

International Journal of Sociology and Social Policy, vol. 3 no. 1/2
Type: Research Article
ISSN: 0144-333X

Keywords

Article
Publication date: 1 March 2011

Michael S. Pepe, Russell Abratt and Paul Dion

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…

9510

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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

Research limitations/implications

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.

Practical implications

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.

Originality/value

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.

Details

Journal of Product & Brand Management, vol. 20 no. 1
Type: Research Article
ISSN: 1061-0421

Keywords

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