Search results

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.

Private labels are gaining increasing importance in many industries. While there are obvious benefits for retailers to embrace private labels, the standard explanations for manufacturers' involvement (idle capacity, buffer against follower brands, retailer's conditions) do not explain it completely. This paper seeks to provide an additional explanation.

An economic model of vertical differentiation is proposed.

The model shows that, once the retailer has decided to introduce the private label, and depending on the quality positioning chosen by the retailer, both manufacturers find situations where they are better off by not supplying the store brand and allowing the other manufacturer to produce the private label, but also situations where they prefer to produce the private label. Also, it is shown that retailers will choose the high‐quality manufacturer for its premium store brand, and the low‐quality manufacturer otherwise, and this decision is not based on the set of skills possessed by each manufacturing company.

The model contributes to explaining why private label supply is becoming so pervasive among all kinds of manufacturers under a variety of circumstances.

The role of private labels in consumer choice is studied by considering two issues: do private labels affect the way people buy within a store, and do they affect the way people choose between stores? The revealed behaviour of consumers is studied, both descriptively and using a very general model of behaviour, the Dirichlet. Some examples are presented which show that within a store, the way consumers buy private labels is similar to the way they buy brands, and that for the buying of a product at different stores, consumers patronise stores with private labels in much the same way as stores without them.

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.

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.

The purpose of this paper is to determine which strategic objective factors have significant effects on competitive advantage of private label manufacturers in Turkey.

A study was conducted of 90 Turkish private label manufacturers. A web‐based questionnaire was the chosen method.

Three strategic objective factors were found to have an effect on competitive advantage: production efficiency, market embeddedness and product selling control.

A comparative analysis between retailers and manufacturers of private labels was regarded as necessary to learn about their perspectives regarding competition. The large sample size encouraged confident generalization of the findings. Another limitation was only analyzing data from a country that has a low private label market share.

The findings of this paper offer valuable insights to retailers, national brand manufacturers and private label manufacturers, enabling them to learn the triggers for product manufacturing from the perspective of private label manufacturers.

It is hoped that this paper will reveal some valuable perspectives from an emerging private label market.

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.

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.

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.

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.

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.

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.

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 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.

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.

This study aims to investigate the impact of social risk and inter-tier brand competition across traditional retailers and discounters on consumers' purchase intentions in the UK.

The authors conduct a 2 (social risk) × 3 (brand type) × 2 (retailer type) between-subjects design (n = 309; UK) experiment employing a Qualtrics online panel in the UK.

The study shows that while premium private labels (PPLs) are on par with national brands, discounter's PPLs outperform mainstream retailer's PPLs. Furthermore, consumers appear to purchase standard private labels and PPLs for themselves when shopping at a discounter but turn to national brands when shopping for socially risky situations.

While Tesco's premium (Tesco Finest*) and standard private label (Tesco Everyday Value) explicitly make reference to the retailer's name, for Lidl's premium (Deluxe) and standard private label (e.g. Milbona), the discounter's name is not visible. This is something this study did not control for.

Given that Lidl has opened its first US store in 2017 with ambitious expansion plans, our findings provide in particular practical guidelines for how to promote PPLs in countries where the discounter landscape is less saturated than in Germany.

This study provides insights into the understanding of the influence of social risk on purchasing intentions of premium private labels vs standard private labels vs national brands offered by mainstream retailers or discounters in the UK.