scholarly journals Testing the decoy effect in the presence of store brands

2015 ◽  
Vol 43 (2) ◽  
pp. 113-125 ◽  
Author(s):  
Ricardo Sellers-Rubio ◽  
Juan-Luis Nicolau-Gonzalbez
Keyword(s):  
Sales Promotion ◽  
Brand Names ◽  
Store Brand ◽  
Store Brands ◽  
National Brand ◽  
Content Type ◽  
National Brands ◽  
Decoy Effect ◽  
Relative Preference ◽  
Rule Out

Purpose – The purpose of this paper is to test decoy effect in the framework of sales promotion, by conducting several experiments to figure out how this decoy effect is influenced by the presence or absence of a store brand. Design/methodology/approach – Several experiments have been conducted to test the validity of the decoy effect and rule out some explanations for the changes in demand that take place. The experiments consider three brands (two national brands and one store brand). All the brand names and prices employed in the experiment are real. Findings – The results indicate that, as expected, the inclusion of a decoy in the choice set significantly increases the consumer’s relative preference for the promoted product; however, more importantly, the results also show that store brand consumers are more influenced by a decoy than national brand consumers. Originality/value – This paper presents the first evidence of the decoy effect in the presence of store brands.

Store-brand introduction and production arrangement in the presence of multiple retailers

2020 ◽  
Vol 54 (3) ◽  
pp. 827-843 ◽  
Author(s):  
Rong Cheng ◽  
Weimin Ma ◽  
Hua Ke
Keyword(s):  
Game Theory ◽  
Real World ◽  
Stackelberg Games ◽  
Store Brand ◽  
Store Brands ◽  
National Brand ◽  
Model Interaction ◽  
National Brands ◽  
The Real ◽  
Retailing Business

Store brands play an increasingly important role in retailing business, leading more and more retailers to introduce store brands. Abundant research focuses on competition between store brands and national brands and counterstrategies that national-brand manufacturers can take to counter store-brand introduction. A little research studies the store-brand production issue, however, all under single-retailer scenarios. To approach the real world, we employ game theory to model interaction between a national-brand manufacturer and multiple locally monopolist retailers, one of whom has capability and motivation to introduce a store brand. Five Stackelberg games are build and solved to investigate: how the presence of the non-store-brand retailers affects the store-brand retailer’s decision on and profitability in the store-brand introduction; how the store-brand retailer should arrange store-brand production; whether there is a win–win situation where both the store-brand retailer and the national-brand manufacturerare better off with the latter producing the store brand. Accordingly, our study offers a novel rationale for why so many, especially leading, national-brand manufacturers are involved in the store-brand production. Some useful managerial suggestions are proposed on the store-brand introduction and production arrangement.

Influence of perceived risk on store brand proneness

2006 ◽  
Vol 34 (10) ◽  
pp. 761-772 ◽  
Author(s):  
Celina González Mieres ◽  
Ana María Díaz Martín ◽  
Juan Antonio Trespalacios Gutiérrez
Keyword(s):  
Perceived Risk ◽  
Purchase Intention ◽  
Risk Difference ◽  
The Other ◽  
Store Brand ◽  
Store Brands ◽  
Content Type ◽  
National Brands ◽  
Other Hand ◽  
Mediterranean Countries

PurposeThe purpose of the present study is to test that perceived risk is a multidimensional concept both when it is associated to the purchase of store brands and national brands and analyzes the effect of perceived risk on store brands proneness.Design/methodology/approachIn order to achieve its objective the paper used a confirmatory factor analysis to validate the proposed perceived risk scale and three regression analysis were carried out to evaluate the effect of perceived risk on store brands proneness.FindingsThe results of the study show significant differences between store and national brands and, on the other hand, it has been confirmed that these differences contribute to decrease store brand proneness, the latter being measured through three variables: actual store brands purchase, consumption intensity and future purchase intention.Originality/valuePrevious empirical research has focused primarily on the perceived risk associated with store brands individually. On the contrary, this paper considers the perceived risk difference between store and national brands, believing that the difference between brands is what will really make the consumer choose a store brand or a national brand. On the other hand, the present study will permit the evaluation of the effects of the evolution of store brands in Spain, effects that can be replicated in other Mediterranean countries.

scholarly journals Store-Brand Production Arrangement Based on the Game Theory

2018 ◽  
Vol 2018 ◽  
pp. 1-10
Author(s):  
Weimin Ma ◽  
Rong Cheng ◽  
Hua Ke ◽  
Jianguang Zhang
Keyword(s):  
Game Theory ◽  
Production Efficiency ◽  
High Efficiency ◽  
Strategic Interaction ◽  
Store Brand ◽  
Store Brands ◽  
National Brand ◽  
National Brands ◽  
The Game Theory

The increasing popularity of store brands is resulting in greater cannibalization of national brands. Thus, national-brand manufacturers are trying their best to confront this trend. At the same time, however, many leading national-brand manufacturers have become involved in the store-brand production of their counterpart retailers. We construct a game-theory-based framework to model the strategic interaction between a leading national-brand manufacturer and a retailer. Besides the national brand, the retailer also has an option for its own store brand to compete with the national brand head to head. There are two choices for the store-brand production available to the retailer: a fringe manufacturer with low production efficiency or alternatively the national-brand manufacturer with high efficiency. It is shown that, under certain conditions, there is a win-win situation for both the store-brand retailer and the national-brand manufacturer with the latter supplying the store brand. More interestingly, it is found that the national-brand manufacturer supplying the store brand may lead to a higher likelihood of the store brand introduction. Our study offers an explanation for why more and more national-brand manufacturers supply store brands.

The interplay of products from the same product line: the role of brand reputation

2014 ◽  
Vol 48 (9/10) ◽  
pp. 1648-1663 ◽  
Author(s):  
Mauricio Palmeira
Keyword(s):  
Positive Impact ◽  
Future Research ◽  
Store Brand ◽  
Store Brands ◽  
National Brand ◽  
Content Type ◽  
Brand Reputation ◽  
A Value ◽  
The Impact

Purpose – The main aim of this paper is to examine the role of brand reputation on the impact of value product on perceptions of a premium product from the same brand. As a secondary goal, it tests and extends existing findings from judgment tasks to a choice task. Design/methodology/approach – Two online experiments are presented. In Study 1 (1a and 1b), participants provided quality and price judgments to products. Brand reputation was manipulated by comparing common store brands to non-store brands (Study 1a) and to upscale store brands (Study 1b). In Study 2, we examined whether findings indicating a positive effect of a value store brand on a premium store brand extends to a choice context. Participants made choices between a premium store brand and a national brand in the presence of either a value store brand or a value national brand. Findings – It was found that brand reputation plays an important role in the interplay of products in line extensions. While the positive impact of a value brand on a premium brand is at its strongest level for a regular store brand, it still has a moderate size for a non-store brand without a defined reputation, as well as for an upscale store brand. Second, using a choice task, we reject an important rival explanation for the impact of a value store brand on a premium store brand observed in previous research. Research limitations/implications – The authors have focused on consumers’ expectations of products. While research has shown that these expectations play an important role in evaluations, future research may directly examine perceptions after consumption. The findings also offer an opportunity for future research to examine the differences in perceptions between store and non-store brands at different positioning levels, as well as other factors that affect brand reputation. Practical implications – The findings have two practical implications. First, our results indicate that when a manufacturer produces two products in the same category at different levels of quality, there is some benefit in letting consumers know about this relationship. The authors consistently found no negative impact on the brands and often a positive impact on the premium brand. While effects are stronger for common store brands, they are likely to emerge for any type of brand, albeit weaker. Originality/value – This paper contributes to the nascent literature on multi-tier brands and vertical extensions in several ways. First, the role of brand reputation was examined and how it interacts with positioning in line extension context. Second, we show that the effect of a value brand on a premium brand is stronger for store brands, but still existent for non-store brands. These results offer implications for practice and open opportunities for future research on multi-tier store brands.

A comparison between economic and organic store brands

2017 ◽  
Vol 45 (12) ◽  
pp. 1298-1316 ◽  
Author(s):  
Magali Jara ◽  
Gérard Cliquet ◽  
Isabelle Robert
Keyword(s):  
Brand Equity ◽  
Perceived Quality ◽  
Purchase Intentions ◽  
Path Model ◽  
Added Value ◽  
Store Brand ◽  
Store Brands ◽  
Content Type ◽  
Further Development

Purpose The purpose of this paper is to tackle the issue of store brand equity by considering two store brand’s positioning strategies: those with high perceived added value (the organic store brands), as opposed to economic brands. It takes place in the current environmental considerations showing the important role played by the packaging in determining the store brand equity. Design/methodology/approach A PLS Path model divided into four sub-models enables the authors to make specific predictions about customers’ purchase intentions. It also provides a concise operational calculation of the brand equity of each studied store brand. Findings Results show that economic brands build their equity with reinforced packaging, and organic brands maximise their brand equity by using simple packaging. In general, reinforced packaging improves the perceived quality of economic store brands but destroys that of organic brands. The calculations of overall equity scores for each studied store brand reveal that economic brands could benefit from further development whilst organic brands already maximise their equity. Practical implications Results will enable large retailers to develop effective campaigns focussing on perceived quality and more specifically by designing packaging that are suitable for the positioning of their brands – a simple packaging for organic brands and a reinforced packaging for economic brands to maximise customers’ value. Originality/value This is one of the first studies to deepen the store brand equity, comparing two contrasting types of brands, by studying specifically variations of the levels of customers’ perceived quality depending of two types of packaging.

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.

How previous positive experiences with store brands affect purchase intention in emerging countries

2017 ◽  
Vol 34 (4) ◽  
pp. 536-558 ◽  
Author(s):  
Mbaye Fall Diallo ◽  
Jose Ribamar Siqueira Jr
Keyword(s):  
Latin American ◽  
Cultural Context ◽  
Purchase Intention ◽  
Emerging Countries ◽  
Previous Experience ◽  
Brand Experience ◽  
Store Brand ◽  
Store Brands ◽  
Mediation Effects ◽  
Content Type

Purpose Brand experience is a key factor that helps elucidate why consumers choose a given brand among others. The purpose this paper is to investigate how previous experience with store brands affects store brand purchase intention in two emerging markets and whether the cultural context moderates the relationships between store brand positive or negative cues and store brand purchase intention. Design/methodology/approach A store-intercept survey undertaken in the Latin American context generated 769 usable responses from consumers of two metropolitan cities (Brasilia and Bogota), respectively, in Brazil and Colombia. The questionnaires were collected in four well-established retail chains by professional investigators. Structural equation modelling was used to test a series of proposed hypotheses. Findings Overall, this paper reveals that consumers in Latin America do care about brand experience when shopping. More specifically, the results indicate that previous positive experience with store brands has a positive effect on consumer purchase intention in both countries investigated. In Brazil, store brand price perceptions mediate rather strongly the relationship between previous experience with store brands and purchase intention. In contrast, this effect is weak in Colombia. Store brand perceived risk has significant mediation effects in Brazil, but no mediation effects in Colombia. The authors also underline heterogeneous moderation effects of the cultural context, suggesting that common perceptions of Latin America as a culturally homogeneous region are stereotypical. Research limitations/implications Respondents were consumers of only two Latin American emerging countries (Brazil and Colombia) and shoppers of two retail chains in each country. Caution should therefore be exercised when generalising the results to other emerging markets. Practical implications The paper offers recommendations on how to standardise/adapt brand experience management in different Latin American markets. Overall, retailers should go beyond the transaction itself and establish true differentiation using different store brand ranges. However, due to differences in cultural contexts, marketing communication should adopt different approaches to each country: emphasise the price advantages of store brands in Brazil, but focus on other factors such as quality in Colombia. Because they are culturally bound, risk perceptions towards store brands should also be managed carefully. It would be possible to target premium consumer segments with standard store brands in Colombia while a more sophisticated approach is necessary in Brazil (e.g. co-branding or launching more premium store brands). Originality/value By employing three theoretical frameworks (learning theory, cue utilisation theory and culture theory), this research investigates the effect of previous experience with store brands on purchase intention in two emerging countries that are geographically close but culturally different. It highlights direct and indirect processes of brand experience and underlines significant structural path differences between the two Latin American countries investigated in terms of consumption behaviour towards store brands.

Market competition, green technology progress and comparative advantages in China

2018 ◽  
Vol 56 (1) ◽  
pp. 188-203 ◽  
Author(s):  
Malin Song ◽  
Shuhong Wang
Keyword(s):  
Technical Progress ◽  
Market Competition ◽  
International Competitiveness ◽  
Green Technology ◽  
National Brand ◽  
Production Chain ◽  
Content Type ◽  
National Brands ◽  
Comparative Advantages ◽  
Pollutant Discharge

Purpose Technical progress is an important technique within improving China’s comparative advantages, as new and renewable technologies will be beneficial for energy security. Productive technical progress and green technical innovation are necessary to improve working conditions and productivity of industries. Therefore, the purpose of this paper is to study technical progress in China under such harsh competitive circumstances, as well as types of technical progress that can be promoted, productive technical progress or green technology progress, and how technical progress will affect China’s competitive advantages. Design/methodology/approach The authors perform a multi-index multi-factor constitutive model based on a sample of 468 Chinese industries, and divide the industries into four categories. Findings The results indicate that there is a “U”-shape relationship between green technology progress and comparative advantages and an inverted “U”-shape relationship between the intensity of market competition and comparative advantages. Research limitations/implications China has crossed the inflection point of the “U”-shaped curve. This, coupled with the slowing of economic growth, demonstrates the need for advocating green technology in China to decrease the pollutant discharge. Establishing Chinese national brands within overseas markets and earning a profit through the downstream of production chain enhance China’s international competitiveness. Originality/value One of the most original findings of this paper points out that China is faced with a situation in which exports are severely decreased and domestic environment pollution is increased. Vigorous promotion of green technology progress, improvement of the quality and the technical content of exported products, the establishment of national brand within the overseas market, as well as enhancement of China’s international competitiveness, is needed.

Understanding apparel brand evolution patterns in Bangladesh: an industry life cycle perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Md Sadaqul Bari ◽  
Byoungho Ellie Jin
Keyword(s):  
Life Cycle ◽  
News Media ◽  
Business Strategies ◽  
National Brand ◽  
Middle Income ◽  
Content Type ◽  
National Brands ◽  
Cultural Aspects ◽  
Industry Life Cycle ◽  
Brand Evolution

PurposeThe purpose of this study is to identify the emergence of apparel brands in Bangladesh: their timing, order and the reasons behind the patterns. This study also examined whether these evolution patterns followed the same path in Korea and India.Design/methodology/approachBy employing secondary research method, this study gathered and analyzed data from companies, trade organizations, news media and academic articles to determine the socioeconomic backgrounds and underlying dynamics that propelled the evolution patterns. Following Jin et al.'s (2013) approach, we analyzed three types of apparel brands (international, national and private) in Bangladesh.FindingsThe findings indicated that in contrast with Korea and India, in Bangladesh (a) the emergence of international brands occurred after the national brands' appearance in the More Advanced Production of Fabric and Apparel stage, (b) national brands also emerged at the same stage and earlier than the international brands developed, and (c) internationalization of national brands and emergence of private brands were not observed. The differences in the emergent timing and order were explained by socioeconomic and cultural aspects, along with industry life cycle perspectives.Practical implicationsFindings indicate that the Bangladeshi market is dominated by national apparel brands. Therefore, international brands are advised to consider the business strategies of local competitors and develop their own pricing and merchandising strategies to maintain their supremacy as premium brands.Originality/valueThis study addressed apparel brand evolution patterns in a lower middle-income country. The results revealed some unique aspects. Unlike in other developing countries, national brand development in Bangladesh was initiated by entrepreneurs.

scholarly journals From store brands to store brandscapes: the emergence of a time and money saving heuristic

2015 ◽  
Vol 49 (5/6) ◽  
pp. 894-918 ◽  
Author(s):  
Alan M Collins ◽  
James Martin Cronin ◽  
Steve Burt ◽  
Richard J. George
Keyword(s):  
Information Search ◽  
Structural Equation ◽  
Time Pressure ◽  
Strong Support ◽  
Store Brand ◽  
Store Brands ◽  
Economics Of Information ◽  
Content Type ◽  
Financial Pressure

Purpose – This paper aims to investigate the role of store brands as a time- and money-saving heuristic in the context of an omnipresent store brand hierarchy. Drawing on the work of Tversky and Kahneman (1982), it proposes that the store brand hierarchy is characterised by many of the traits of frequently used heuristics employed by grocery shoppers. Design/methodology/approach – Based on Chaiken’s (1980) model of information processing and Stigler’s (1961) perspective on the economics of information search, the study deductively establishes a model of store brand proneness to reveal the role of store brands as time- and money-saving heuristic. The model is tested on a sample of 535 US households using structural equation modelling and subsequent multigroup analysis based on two subsamples of households experiencing high financial pressure but who differ in terms of time pressure. Findings – The findings provide strong support for store brands as a time- and money-saving heuristic and as a substitute for price search among households experiencing financial and time pressures. Research limitations/implications – The main limitation is that the study is based on a sample of households located in one region of the US market. Practical implications – Retailers need to be aware that any extension of the store brand portfolio beyond the traditional multi-tiered price/quality hierarchy risks undermining what has emerged to be a valuable heuristic used by certain shoppers. Originality/value – This study extends our understanding of the role of store brands in the marketplace by going beyond their conceptualisation as a competitive device used by retailers to instead position them as a decision-making tool used by consumers. It also deepens our understanding of the boundary between rational search activities and the transition to the use of frequently flawed heuristics within the shopping process.

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