In-store marketing of private labels: applying cue utilisation theory

2020 ◽  
Vol 49 (1) ◽  
pp. 145-163
Author(s):  
Sita Mishra ◽  
Gunjan Malhotra ◽  
Garima Saxena
Keyword(s):  
Emerging Market ◽  
Perceived Quality ◽  
Private Label ◽  
New Delhi ◽  
National Brand ◽  
Content Type ◽  
National Brands ◽  
Price Consciousness ◽  
Private Label Brands ◽  
Brand Promotion

PurposeThe purpose of this study is to examine the effectiveness of in-store private label marketing to impact the attitude of consumers towards private label brands (PLBs) by influencing consumers' perceived quality variations between the PLBs and national brands.Design/methodology/approachThis study is based on “Cue utilisation theory” and focusses on how retailers can influence consumers' perception of quality variations by providing them in-store marketing cues. Data was collected through the mall intercept method in New Delhi, India. Data analysis was done using AMOS 25 and the PROCESS SPSS macro.FindingsThis study establishes the effect of in-store private label marketing in improving consumers' quality perception of PLBs vis-à-vis national brands and thereby leading to a positive attitude towards PLBs. Further, the national brand promotions attitude is found to moderate the relationship between private label marketing and attitude towards PLBs. However, contrary to the authors' expectations, it has a positive effect on this relationship. The study found an insignificant moderation influence of price consciousness.Originality/valueThis study complements existing literature on “Cue utilisation theory” by demonstrating the importance of in-store private label marketing in improving consumers' attitudes towards PLBs. It also extends to fill some gaps in the literature by studying the direct, mediating and moderating relationship among in-store private label marketing, perceived quality variations, price consciousness, national brand promotion attitude and attitude towards PLBs, especially in an emerging market such as India.

Identifying a private-label supplier on national brand

2019 ◽  
Vol 28 (3) ◽  
pp. 432-443 ◽  
Author(s):  
Samanta Pérez-Santamaría ◽  
Mercedes Martos-Partal ◽  
Álvaro Garrido-Morgado
Keyword(s):  
Brand Image ◽  
Perceived Quality ◽  
Relative Price ◽  
Private Label ◽  
National Brand ◽  
Content Type ◽  
National Brands ◽  
Loyalty Intention ◽  
Parent Brand ◽  
Grocery Products

Purpose The purpose of this study is to examine the effects of identifying suppliers on private label (PL) packaging on the perceived quality, brand image, loyalty intention and relative price of the national brands (NB) produced by dual manufacturers, considering the possible moderating effects of the images of both the NB and PL. Design/methodology/approach The study uses an experimental setting with two different categories of grocery products. Findings The empirical evidence reveals different effects of PL supplier identification, according to brand images. Research limitations/implications This paper contributes to brand extension literature on the effects on evaluations of the parent brand. It also contributes insights about the identity and identification of PL manufacturers. Practical implications This supplier identification does not affect or positively affect to the perceived quality, brand image or loyalty toward NBs with lower images, but it negatively affects those with high images, especially when the PL also has a high image and adopts a stronger price positioning. Moreover, NBs with lower images appear more expensive or do not affect when they supply PLs for retailers with high images and stronger price positioning. However, if lower image NB supply a PL with the lower image, the effects do not affect or is perceived as cheaper. Originality/value This paper extends prior knowledge about the decision to function as a dual manufacturer from the manufacturer’s perspective.

scholarly journals National Versus Private-Label Brands: Dynamics, Conceptual Framework, And Empirical Perspective

2015 ◽  
Vol 13 (2) ◽  
pp. 123 ◽  
Author(s):  
Elias G. Rizkallah ◽  
Heather Miller
Keyword(s):  
Conceptual Framework ◽  
Consumer Products ◽  
Private Label ◽  
Store Brands ◽  
National Brand ◽  
National Brands ◽  
Product Categories ◽  
Private Label Brands ◽  
Empirical Perspective

Motivated by profits and their growing power in the marketplace, retailers have been expanding their private-label brands to include more categories of consumer products and differentiation on quality to reach different consumer segments. This global phenomenon is adversely impacting the performance of national brands, thus creating a conflict between two powerful parties manufacturers of national brands and their large retailers who are supposed to be their helping hands in the marketplace. In this paper, the authors develop a conceptual framework, which captures the complexity and multidimensionality of the situation the stakeholders involved, the interest and power of each, the relationships among them, various strategies they employ, and the outcomes of the conflict. Several hypotheses were examined and tested through the empirical part of this study; for example, would the powers of these parties determine who is the loser and who is the winner or will the verdict be in the hands of the consumers? The study surveyed 281 consumers to assess their attitudes toward and preferences of store brands versus national brands across product categories and the underlying motivations. The paper concludes with recommendations for retailers and national brand manufacturers to win the hearts of consumers rather than exhaust their resources in the conflict.

The might of the brand

2015 ◽  
Vol 117 (2) ◽  
pp. 485-505 ◽  
Author(s):  
Justin Beneke ◽  
Emma Trappler
Keyword(s):  
Emerging Market ◽  
Percent Level ◽  
Perceived Quality ◽  
Private Label ◽  
Brand Name ◽  
Cognitive Effect ◽  
Two Phase ◽  
Moderator Variable ◽  
Content Type

Purpose – This study examined the influence of supermarket brand name on the perceived quality of its private label merchandise. The purpose of this paper is to determine whether the fascia brand of a retail chain has the power to positively or negatively skew prevailing opinions concerning the quality of its own merchandise range, beyond the set of product-specific intrinsic benefits. Design/methodology/approach – A within-subject two-phase research design was adopted, intially using an experimental approach and thereafter modeling the cognitive effect with the inclusion of a moderator variable (brand interaction). Paired sample t-tests were used to assess differences in mean ratings and partial least squares analysis was implemented in order to test the hypothesized relationships. Findings – In the experiment phase, both products were rated equally at the outset in unsighted conditions, however, ratings diverged when brand name was introduced. Here, the high-end private label brand was scored considerably better than in its unsighted condition, while the low-end brand suffered a marginal decline in rating. In the modeling phase, two iterations of the conceptual model were run, considering the high-end and low-end brands seperately. The results were mutually reinforcing. A strong relationship, significant at the one percent level, was found to exist between brand name and perceived quality for both the lower- and higher-end brands, whereas no moderation effect was found to exist. This suggests that entrenched views of the brand strongly determine the perceived quality thereof, with operational and day-to-day fluctuations having little bearing on this. Research limitations/implications – This study focusses solely on South Africa, an emerging market within the BRICS consortium. To this end, the results are not transferable to other markets. The context of the study pitted a top tier retail brand against a mid tier retail brand. In accordance with this eventuality, lower income consumers, and retail chains catering to this market segment, do not constitute components of this particular study. Originality/value – While the relationship between store image and perceived quality of private label merchandise is well documented, this study considers the effect through an experimental design. Here, perceived quality was measured both with and without brand cues evident. Thus, the results are likely to be more accurate than those acquired through strictly survey research. As a defining feature, the study points to the brand name as being a supremely powerful extrinsic cue, and hinting at the fact that it is long term influences that create a distinct brand aura, with these being largely undisturbed by short term fluctuations.

scholarly journals Factors affecting consumers’ willingness to buy private label brands (PLBs)

2018 ◽  
Vol 22 (3) ◽  
pp. 338-358 ◽  
Author(s):  
Rasha H.A. Mostafa ◽  
Reham I. Elseidi
Keyword(s):  
Perceived Risk ◽  
Structural Equation ◽  
Private Label ◽  
Store Image ◽  
Content Type ◽  
Factors Affecting ◽  
Price Consciousness ◽  
Attitudinal Factors ◽  
Willingness To Buy ◽  
Private Label Brands

Purpose The aim of this research is to investigate the factors affecting consumers’ willingness to buy private label brands (PLBs). The relationships among store image, familiarity with PLBs, consumers’ perceptions of PLB quality, risk, price consciousness and attitude towards PLBs are examined. Finally, the relationship between attitude towards, and willingness to buy PLB is explored. Design/methodology/approach Self-administered questionnaire was distributed to shoppers at Carrefour operating in Cairo, Egypt. The data obtained from 265 respondents were examined using structural equation modelling (analysis of moment structures) version 22, which empirically test the hypothesised relations established in the research conceptual model. Findings With the exception of perceived risk, the results suggest that all consumers’ perceptual and attitudinal factors affect directly or indirectly consumers’ willingness to buy PLB. Research limitations/implications This study is limited to international hypermarket/supermarket operating in Egypt. So the findings should be exercised with cautious while attempting to generalise the research results. Practical implications Retail managers should focus on the enhancement of both store image and familiarity with PLBs to leverage consumers’ perceptions with respect to PLBs quality and risk to achieve differentiation and to increase sales. Originality/value This is one of the few studies that investigate the role of familiarity with PLBs in a developing context. In doing so, it proposes that familiarity with PLBs directly affects consumers’ perceived quality and perceived risk, while it indirectly influences consumers’ willingness to buy PLBs.

Beyond private label panache: the effect of store image and perceived price on brand prestige

2014 ◽  
Vol 31 (4) ◽  
pp. 301-311 ◽  
Author(s):  
Justin Beneke ◽  
Natalia Zimmerman
Keyword(s):  
South Africa ◽  
Emerging Market ◽  
Cape Town ◽  
Perceived Quality ◽  
Private Label ◽  
Store Image ◽  
Breakfast Cereal ◽  
Content Type ◽  
Perceived Price

Purpose – The purpose of this study is to explore the effect of store image and perceived price on the consumer’s perception of private label brands (PLBs) that have grown in stature in recent decades and are increasingly viewed as a strategic asset of retailers. In particular, the tenets of perceived quality, loyalty and awareness/associations, are argued to underpin the construct of brand prestige, which is used as a vehicle to assess consumers’ affinity toward the brand. Design/methodology/approach – A consumer survey was conducted with a specific focus on purchasers of private label branded breakfast cereal in Cape Town, South Africa. The data from 205 respondents were scrutinized through partial least squares path modeling, which empirically tested the eight hypotheses embedded within the conceptual model. Findings – The results suggest that perceived price is a powerful influencer in this process; however, the role of store image was seen to be less obvious. At a granular level, a relationship between store image and perceived quality was found to exist, but not so for loyalty and awareness/associations. In this respect, store image was seen as subordinate to the perceived price of the merchandise, bringing into question the assumed stature of store image as a key decision influencer in an emerging market context. Research limitations/implications – This study was confined to a single product category, within a particular retail segment, as the study focused on PLB breakfast cereal products sold within mainstream South African supermarket stores. This was desirable so as not to infuse varying merchandise category profiles into the model. Furthermore, as data were collected exclusively in the city of Cape Town, the results cannot necessarily be extrapolated to South Africa as a nation. Finally, it should be noted that the study was conducted in an emerging market setting. Developed markets, where consumers are considerably more au fait with PLBs and have increased purchasing power, may therefore produce a different set of results. Thus, our findings are not necessarily generalizable to all branches of the retail sector, nor are they necessarily applicable throughout, and across, different countries. It is hoped that subsequent studies will probe these areas and provide comparative viewpoints. Practical implications – This study upholds the view that price is a key driver in building PLBs, but interrogates the popular belief that store image automatically adds value in fostering goodwill toward the brand. Originality/value – This study is one of the first to investigate the notion of private label prestige (grounded in that of brand equity theory) in an emerging market context. In doing so, the study postulates that the “halo effect” of store image on the comprehensive evaluation of the brand might not be as prominent as maintained in existing literature. The study, therefore, questions the role of store image and perceived price of the merchandise, finding that – in actual fact – these do not fare equally in consumers’ cognitive assessment of the private label merchandise.

scholarly journals Factors Impacting Brand Equity of PLBs: A Study of Grocery and Household Items in Bengaluru

2017 ◽  
Vol 9 (3) ◽  
pp. 148
Author(s):  
S. Shyam Prasad ◽  
Shampa Nandi
Keyword(s):  
Brand Equity ◽  
Brand Loyalty ◽  
Perceived Risk ◽  
Private Label ◽  
Brand Awareness ◽  
Store Image ◽  
National Brands ◽  
Factors Influencing ◽  
Private Label Brands ◽  
The Impact

In India the private label brands (PLBs) are growing at a faster pace than retail. This supposes that PLBs should have brand equity. Although brand equity is one of the most important aspects of a brand in creating competitive advantage, earlier studies have not paid much attention to measuring and conceptualising the factors influencing the brand equity of private label brands. Many researches have looked into the consumer based brand equity (CBBE) of national brands only and hence this study was taken up to examine the dimensions of consumer based brand equity for private label brands including the impact of store image on brand equity.An empirical study was done considering survey instrument from previous study of Girard et al. (2017). The data was collected during December 2016 – January 2017 and SPSS and AMOS were used for analysing data.This study found that <strong>Brand Awareness, Brand Loyalty, Perceived Image, Perceived Value, Perceived Risk, Store Image and Price</strong> are the seven dimensions that build into the brand equity of the private label brands.

Store brand and perceived risk on private label brand attitude

2020 ◽  
Vol 12 (1) ◽  
pp. 133-150 ◽  
Author(s):  
M.K.M. Manikandan
Keyword(s):  
Risk Factors ◽  
Perceived Risk ◽  
Tamil Nadu ◽  
Financial Risk ◽  
Perceived Quality ◽  
Negative Influence ◽  
Private Label ◽  
Social Risk ◽  
Content Type ◽  
The Social

Purpose The purpose of this paper is to find the influence of retailer equity and perceived risk on attitudes toward private label brand (PLB) grocery products. Design/methodology/approach Retailer equity includes four variables: retailer awareness, retailer association, retailer perceived quality and retailer loyalty. The perceived risk factors include functional risk, financial risk and social risk. The attitude toward PLBs was taken as the dependent variable. The study was carried out by using a standardized questionnaire for all three constructs. The convenience sampling method was adopted to carry out data collection from customers of organized retail stores in the city of Coimbatore, in the state of Tamil Nadu, India. The relationship between the three variables was studied with structural equation modeling using IBM SPSS Amos software. Findings The study revealed that excluding the Financial Risk and the Social Risk, functional risk alone has significant influence over the PLB Attitude. The Retailer Equity variables, retailer perceived quality and retailer loyalty have positive influence on the PLB Attitude, while the other two variables do not show any influence. Retailer Awareness shows a negative influence over the social risk. Retailer Association does not show any influence on any of the three risk factors. Retailer perceived quality shows negative influence over the functional risk while retailer loyalty negatively influences social risk. Research limitations/implications The research study was carried out in cities that are populous in the Indian state of Tamil Nadu. All the respondents came from three cities in Tamil Nadu, namely, Coimbatore, Tiruppur and Madurai. Hence, extending the findings of the study to other countries where organized retail penetration is deeper may be attempted with caution. Practical implications The study will offer managers in the retail industry some understanding of the risk-relieving factors in operation when buying grocery goods. Originality/value The research paper contributes to the literature concerning the role played by retailer equity and perceived risk factors on attitudes toward PLBs.

scholarly journals Private labels ain’t bona fide! Perceived authenticity and willingness to pay a price premium for national brands over private labels

2020 ◽  
Author(s):  
Djavlonbek Kadirov
Keyword(s):  
Willingness To Pay ◽  
Perceived Quality ◽  
Price Premium ◽  
Private Labels ◽  
National Brand ◽  
National Brands ◽  
Brand Evaluations ◽  
Brand Authenticity ◽  
Quality Perceptions ◽  
Bona Fide

© 2015 Westburn Publishers Ltd. As private labels are consolidating their gains in national markets, a conventional recommendation to national brand manufacturers would most likely be to invest more in marketing in order to increase the perceived quality gap between national brands and private labels. It is assumed that the quality gap would boost consumer willingness to pay a price premium for national brands over private labels. Differing from this conventional approach, the current study focuses on the perceived authenticity gap between national brands and private labels, to explore whether and how this factor influences the effect of marketing and manufacturing variables on willingness to pay. This relationship is relevant in milieus where consumers might take brand authenticity rather than quality perceptions to guide their brand evaluations. The current study finds that the perceived authenticity gap mediates the effect of only some particular conventional marketing tools on willingness to pay. The study suggests that national brand managers should take the presence of private labels in the national markets as an opportunity to exploit the dynamics of authenticity evaluations, rather than as a threat.

scholarly journals Mediating Role of Perceived Value on the Relationship Among Perceived Risks, Perceived Quality, and Purchase Intention of Private Label Brands

2021 ◽  
Vol 20 (1) ◽  
Author(s):  
Meenu Mathur ◽  
Sanjeevni Gangwani
Keyword(s):  
Purchase Intention ◽  
Perceived Value ◽  
Perceived Quality ◽  
Private Label ◽  
Equation Modeling ◽  
Convenience Sample ◽  
Perceived Risks ◽  
Private Label Brands ◽  
Risk Dimensions

In the current competitive retail market, retailers constantly strive to deliver products to consumers at a better value. Consumers are becoming more price sensitive but still seeking quality products. A retailer can establish value with a brand. Consequently, retailers are introducing their own private label brands (PLBs), which also differentiate their products from competitors. The role of perceived value in the purchase behavior of PLBs and its relationship with quality and various risk dimensions has received scant consideration in the retailing literature. Our study suggests perceived value is a mediating part in associations amid perceived quality, perceived risks, and purchase intention of PLBs. A structural equation modeling approach was adopted to test the proposed hypotheses with a convenience sample of 458 consumers of retail department stores obtained via a cross-sectional survey. The results demonstrate that the role of perceived value is vital in strengthening the association of consumer-perceived quality and purchase intention of PLBs as well as minimizing the consumer’s risks as they intend to buy PLBs. Overall, the study contributes to the emerging retail and consumer behavior literature regarding the role of perceived value in purchase intention of PLBs.

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