scholarly journals Going healthy: how product characteristics influence the sales impact of front-of-pack health symbols

2021 ◽  
Author(s):  
Stijn Maesen ◽  
Lien Lamey ◽  
Anne ter Braak ◽  
Léon Jansen
Keyword(s):  
Private Label ◽  
Scanner Data ◽  
Product Characteristics ◽  
Process Information ◽  
Lay Beliefs ◽  
Product Sales ◽  
Grocery Products ◽  
Private Label Products

AbstractManufacturers increasingly adopt health symbols, which translate overall product healthiness into a single symbol, to communicate about the overall healthiness of their grocery products. This study examines how the performance implications of adding a front-of-pack health symbol to a product vary across products. We study the sales impact of a government-supported health symbol program in 29 packaged categories, using over four years of scanner data. The results indicate that health symbols are most impactful when they positively disconfirm pre-existing beliefs that a product is not among the healthiest products within the category. More specifically, we find that health symbols are more effective for (i) products with a front-of-pack taste claim, (ii) lower priced products, and (iii) private label products. Furthermore, these results are more pronounced in healthier categories than in unhealthier categories. Our findings imply that health symbols can help overcome lay beliefs among consumers regarding a product’s overall healthiness. As such, adding a health symbol provides easy-to-process information about product healthiness for the consumer and can increase product sales for the manufacturer.

scholarly journals Demand elasticities and price-cost margin ratios for grocery products in different socioeconomic groups

2012 ◽  
Vol 52 (No. 5) ◽  
pp. 225-235 ◽  
Author(s):  
C. Akbay ◽  
E. Jones
Keyword(s):  
Ice Cream ◽  
Private Label ◽  
Demand System ◽  
Almost Ideal Demand System ◽  
Lower Income ◽  
Average Price ◽  
Scanner Data ◽  
Socioeconomic Groups ◽  
Demand Elasticities ◽  
Grocery Products

In this paper, the demand elasticities and the size of price cost margin (PCM) ratios were investigated for private and national branded products using scanner data from a large supermarket chain in Ohio, USA. Demand elasticities and PCM ratios were measured for 32 national branded and 14 private label products for 9 food categories by using Almost Ideal Demand System. According to the results, lower-income shoppers were more prices sensitive than higher-income shoppers and the average price elasticities were ranged between –1.96 (Snacks) and –3.33 (ice-cream). According to the results, non-collusive case gave smaller PCM than the Bertrand case and the average PCM ratios ranged from 27% for ice cream to 54% for chips. 

scholarly journals PREDICTING CUSTOMER LIFETIME VALUE FOR HYPERMARKET PRIVATE LABEL PRODUCTS

2017 ◽  
Vol 18 (4) ◽  
pp. 619-635 ◽  
Author(s):  
Hsin-Hui LIN ◽  
Hsien-Ta LI ◽  
Yi-Shun WANG ◽  
Timmy H. TSENG ◽  
Ya-Ling KAO ◽  
...  
Keyword(s):  
Product Quality ◽  
Customer Lifetime Value ◽  
Private Label ◽  
Store Image ◽  
Repurchase Intention ◽  
Customer Lifetime ◽  
Lifetime Value ◽  
Image Fit ◽  
Image Variables ◽  
Private Label Products

This study develops a model to predict customer lifetime value for hypermarket private label products. It examines the relationships among store awareness, store image variables (i.e., service quality, price/value, convenience, and product quality), private label image, repurchase intention, and customer lifetime value and investigates the moderating role of image fit. The originality of this study lies in filling the gap of previous research on antecedents of private label customers’ behavior by considering store awareness, image fit, and customer lifetime value. Partial least squares structural equation modeling was used to analyze data. The results indicate the following. Store image variables (except product quality) and store awareness affect repurchase intention directly or indirectly through private label image. Image fit moderates the relationships between store image variables (except product quality) and private label image. Private label image facilitates customer lifetime value. This study provides several theoretical and practical implications for hypermarket private label product developments.

scholarly journals The determinants of purchasing private label products

Marketing ◽  
2020 ◽  
Vol 51 (4) ◽  
pp. 283-293
Author(s):  
Ivana Marković ◽  
Biljana Rabasović ◽  
Mlađen Vićentić
Keyword(s):  
Regression Analysis ◽  
Online Survey ◽  
Economic Situation ◽  
Private Label ◽  
Price Sensitivity ◽  
Consumer Loyalty ◽  
Personal Interview ◽  
Interview Method ◽  
The Subject ◽  
Private Label Products

A private label is developed by a retailer with the aim to achieve the largest possible market share, to suppress manufacturer's brands, to increase the margin and to gain consumer loyalty. The subject of this paper is to analyze the determinants of purchasing private label products. The aim of this paper is to examine whether the economic situation perception, price sensitivity, quality perception and the sense of "smart shopping" have an impact on the purchase of a private label products. Data were collected by personal interview method, via online survey 260 respondents were examined, and hypotheses were tested by regression analysis. The obtained results indicate that the price sensitivity and the smart shopping feeling have a positive statistical impact on the private label purchase, while in the case of the two remaining observed variables: perception of economic situation and quality, this impact is not statistically significant. The study is original while it identifies which determinants shape consumer behavior when it comes to buying a private label. As such, it can be useful for retailers to successfully develop and manage their own branded products.

The Evolution of Private Label Products in Turkey

2020 ◽  
pp. 1-16
Author(s):  
Yusuf Arslan
Keyword(s):  
Literature Review ◽  
Marketing Strategy ◽  
Marketing Strategies ◽  
Private Label ◽  
Private Labels ◽  
Developed Markets ◽  
Marketing Activities ◽  
Private Label Products

The purpose of this chapter is to reveal the recent situation in Turkey for private label products in detail and to create some insights for marketing professionals in terms of which marketing strategy to use for private labels to become more successful in the market. To reach this aim, a literature review has been made to understand the success of developed markets and to reveal the marketing strategies that would be proper to implement also in the Turkish market. Then, certain marketing strategies were proposed to the professionals in the Turkish market. One of the main solutions revealed in this study was the importance of creating premium private labels for the Turkish market. It was also understood that Turkish professionals can benefit from the successful marketing activities implemented by developed markets earlier.

The effect of the number of ingredient images on package evaluation and product choice

2018 ◽  
Vol 33 (3) ◽  
pp. 6-30 ◽  
Author(s):  
Fanny Thomas ◽  
Sonia Capelli
Keyword(s):  
Cognitive Load ◽  
Purchase Intention ◽  
Food Product ◽  
Need For Cognition ◽  
Product Choice ◽  
Process Information ◽  
Product Sales

In the highly competitive context of food product sales in supermarkets, consumers may have difficulty processing deeply the information on a given package. This research examines how the number of ingredients depicted on packaging in addition to the picture of the whole product impacts its efficacy depending on consumers’ motivation (hunger), opportunity (via cognitive load), and ability (via need for cognition – NFC) to process information. Three studies find that, under high cognitive load, packages depicting many ingredients induce more mental taste imagery, heighten purchase intention, and improve taste evaluations. For consumers with high NFC (vs low), under high cognitive load, packaging not depicting ingredients (vs five ingredients) is preferred when consumers are motivated by hunger. Under low cognitive load and whatever the NFC, information is processed centrally and evaluation does not depend on the number of ingredient images depicted.

scholarly journals The Pass-Through of Minimum Wages into US Retail Prices: Evidence from Supermarket Scanner Data

2020 ◽  
pp. 1-99
Author(s):  
Tobias Renkin ◽  
Claire Montialoux ◽  
Michael Siegenthaler
Keyword(s):  
Minimum Wage ◽  
State Level ◽  
Minimum Wages ◽  
Scanner Data ◽  
Consumer Prices ◽  
Retail Prices ◽  
Minimum Wage Legislation ◽  
Pass Through ◽  
Wage Increases ◽  
Grocery Products

This paper estimates the pass-through of minimum wage increases into the prices of US grocery and drug stores. We use high-frequency scanner data and leverage a large number of state-level increases in minimum wages between 2001 and 2012. We find that a 10% minimum wage hike translates into a 0.36% increase in the prices of grocery products. This magnitude is consistent with a full pass-through of cost increases into consumer prices. We show that price adjustments occur mostly in the three months following the passage of minimum wage legislation rather than after implementation, suggesting that pricing of groceries is forward-looking.

scholarly journals The effects of price promotion on relative virtue and vice food products

2017 ◽  
Vol 20 (5) ◽  
pp. 637-654
Author(s):  
Josefa Parreño-Selva ◽  
Francisco J. Mas-Ruiz ◽  
Enar Ruiz-Conde
Keyword(s):  
Survey Data ◽  
Product Category ◽  
Scanner Data ◽  
Price Promotion ◽  
Low Fat ◽  
Price Promotions ◽  
Product Categories ◽  
Light Product ◽  
Enduring Involvement ◽  
Product Sales

Retailers use price promotion of light and regular products, but not all of these products are perceived as relative virtues and vices, respectively. This paper aims to identify whether consumers distinguish between the two product categories. Survey data is used to distinguish between each product category, and identifies low-fat milk as a light product that gives both immediate and delayed rewards. Daily scanner data from a hypermarket supports the effects of price promotions on sales within and between product categories, as expected. We expect that, (1) due to these light products representing more enduring involvement, demand is less price sensitive compared to demand for regular products; (2) as nonimpulse purchase products, price promotions of light products cannibalize the sales of other light products; and (3) the loss of light product benefits associated with switching means that price promotions of light products hurt regular product sales more than vice versa.

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