The impacts of comparative ads used by retailers to compare their store brands with national brands

2020 ◽  
Vol 49 (1) ◽  
pp. 1-22
Author(s):  
Jérôme Lacoeuilhe ◽  
Didier Louis ◽  
Cindy Lombart ◽  
Blandine Labbé-Pinlon

PurposeThe research aim is to investigate the impacts of comparative ads used by retailers to compare the prices of their store brand (SB) products with those of equivalent national brand (NB) products. More specifically, this research examines if consumers perceive retailers as legitimate when they use comparative ads to compare the prices of their SB products to those of equivalent NB products, and how effective are these comparative ads in terms of actual purchases. This research also explores for which SB type (economy, standard or premium) and consumers are comparative ads most effective.Design/methodology/approachThis research investigates consumers' reactions to comparative ads used by retailers to compare the prices of their SB products with those of similar NB products through an experiment within a store laboratory. A between-subject design has been used. The participants of the first/second/third group (n1 = 93/n2 = 92/n3 = 91) were exposed to ads comparing the prices of retailer's economy/standard/premium SB food products with their equivalent NB food products, in the same product category. The participants of each group carried out a shopping trip in the store laboratory.FindingsConsumers consider retailers legitimate when they use comparative ads. This favourable evaluation improves their attitude towards these ads. However, the impact of retailers' legitimacy of (1) means, (2) objectives and (3) historical legitimacy on consumers' attitude towards comparative ads depends on the SB type (economy, standard and premium). By contrast, comparative ads are effective in terms of consumers' attitude towards these ads and towards SBs, along with purchase intention and actual purchases of these brands, whatever the SB type. Lastly, this research highlights that comparative ads for SBs are mainly directed at consumers with high levels of price consciousness and resistance to NBs.Research limitations/implicationsThis research only tested the impact of direct comparative advertising and an extrinsic attribute (price). The research experiment was conducted on a convenience sample, which limits its external validity.Practical implicationsThis research encourages retailers to use comparative advertising for their SBs (economy, standard and premium) for several reasons. First, this study suggests that comparative advertising is an effective tool for retailers to shape or improve consumers' attitude towards SBs, via their attitude towards comparative ads. Second, this research proposes that comparative advertising contrasting the prices of SB products with those of NB products could increase retailers' in-store sales of their SBs. Lastly, this research underlines that comparative advertising is particularly effective for consumers with high levels of price consciousness and resistance to NBs.Originality/valueThis research supplements previous research in the field of SBs and comparative advertising. Previous research on comparative advertising has examined NBs exclusively (Dianoux et al., 2013; Beard, 2018). Comparisons between SBs and NBs are lacking. This research thus validates the use of this specific form of communication for SBs, given the paucity of studies of the effects of the use of mass media communication on SBs (Nenycz-Thiel and Romaniuk, 2014; Gendel-Guterman and Levy, 2017).

2019 ◽  
Vol 36 (1) ◽  
pp. 113-123 ◽  
Author(s):  
Sarah Lefebvre ◽  
Laurel Aynne Cook ◽  
Merlyn A. Griffiths

Purpose This paper aims to examine consumers’ opinions and behavioral intentions toward foods labeled as containing genetically modified (GM) (transgenic) ingredients across plant and animal-based categories. In light of marketplace changes (i.e. labeling requirements), we explore behavioral measures based on labeling options. Design/methodology/approach Three studies, one online projective survey using a convenience sample of consumers and two experiments conducted with Amazon mTurk adult US participants, are included. Findings Consumers have negative associations with GM products vs non-GM and are more likely to purchase unlabeled GM products. GM products may offer positive economic, societal and environmental benefits. However, the need for labeling overshadows these benefits and presence of GM labeling increased avoidance. Furthermore, changes in product opinion mediate consumers’ purchase intention and willingness to pay. Research limitations/implications GM labeling negatively influences consumers’ opinions and behavioral intentions. This is important for legislators and marketers concerned with counter-labeling effects (e.g. Non-GMO Project Verified). Practical implications Debates on efficacy of labeling, inclusion disclosure of ingredients, short-term risks and long-term implications are ongoing globally. Consumer reception and purchase intention can only be changed through governmental and corporate transparency. Social implications Widespread misinformation about GM foods, presence in our food supply, impact on health, economy, environment and the marketplace still exists. The findings reflect consumers’ responses to changes proposed by the 2016 National Bioengineered Food Disclosure Standard legislation. Originality/value With the paucity of research on consumer response to the release of a GM animal product into the food supply, this work breaks new ground as the first to examine the impact of disclosure of GM animal-based food type.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Reza Fazli-Salehi ◽  
Ivonne M. Torres ◽  
Rozbeh Madadi ◽  
Miguel Ángel Zúñiga

Purpose The purpose of this study was to explore the impact of self-related traits on consumer self-brand connection (SBC) and communal-brand connection (CBC) in public vs private consumption. Marketing practitioners will benefit by understanding the consumer traits that can be triggered and focused on in advertising campaigns. Moreover, it is important to know which traits have a significant impact on each product category section (i.e. public vs private use). Design/methodology/approach An experiment used a between-subjects design with two randomized blocks of publicly used brands and privately used brands. Within each block, the relationship between independent variables (narcissism and need for uniqueness [NFU]) and dependent variables (SBC, CBC and purchase intention) were analyzed using SmartPLS. Findings The results showed that narcissism has a significant positive impact on consumers’ SBC for publicly consumed products, no effect was found for CBC. NFU shows a significant positive impact on SBC and CBC for both categories. The results also showed a positive impact for SBC on purchase intention, no effect was found for CBC. Research limitations/implications Future research can examine brand names that people favor the most and test whether individuals’ narcissism and NFU is influential on their SBC and CBC with the brands, regardless of the exposure to the visual cues provided in this paper. Moreover, there are more behavioral outcomes that need examination. For example, it would be fruitful to see whether attitude toward the ad, or brand attitude are affected by consumers’ narcissism and NFU. Practical implications The results contribute to the effectiveness of advertising in different industries. For instance, brand managers and marketing practitioners can benefit by understanding which product types are more attractive to consumers based on their tendency toward uniqueness. Moreover, narcissism is another common trait that can be used to target consumers. Thus, certain product types may be more attractive to consumers based on their narcissism tendencies. Originality/value Despite the popularity of SBC and CBC research, there is limited knowledge about the consumer traits which can stimulate and enhance these concepts. As such, an important question that needs to be addressed is: “What consumer personality traits lead to higher SBC and CBC?” When it comes to self-concept, a limited number of studies exist that explore the actual types of personality or self-concept that generate a desired connection between the “self” and brands.


2015 ◽  
Vol 117 (2) ◽  
pp. 793-804 ◽  
Author(s):  
Faruk Anıl Konuk

Purpose – The purpose of this paper is to examine the effects of price consciousness and sale proneness on purchase intentions regarding with expiration date-based priced perishable foods. Design/methodology/approach – Data were collected from a convenience sample of consumers with structured questionnaires. Structural equation modeling was used in order to test the proposed hypotheses. Findings – Results of a structural model reveal positive relationship between price consciousness and sale proneness. The findings also confirm the effect of price consciousness on purchase intentions toward expiration date-based priced perishable foods. On the other hand, the results have not support the positive effect of sale proneness on purchase intentions. Originality/value – To the knowledge, this is the first study which has examined the relationships between price consciousness, sale proneness and purchase intentions in the context of expiration date-based pricing.


2015 ◽  
Vol 10 (1) ◽  
pp. 122-140 ◽  
Author(s):  
Varsha Jain ◽  
Rohit H Trivedi ◽  
Vikrant Joshi ◽  
Aarzoo Daswani

Purpose – With increasing use of explicit comparative advertisement to get share of consumers’ mind and influence their purchase decision in western context, the same is now used extensively in emerging markets like India. However, there has not been sufficient research to understand the effectiveness of explicit comparative advertisement in low and high-involvement product categories. Therefore, the purpose of this paper is to attempt to understand the effectiveness of explicit comparative advertising on consumers’ attitude and purchase intention (PI) towards high and low-involvement products. Design/methodology/approach – The study carried out experimental treatments with 2 × 2 factorial design among 200 Indian young consumers who were in the age group 18-25. The independent variables were product categories and type of advertising (comparative and non-comparative) and dependent variables were consumer attitude and PIs. Findings – It was found that the comparative form of advertisement developed favourable response towards the advertisement, rather than towards the brand or PI. Research limitations/implications – The study found that comparative advertising is effective for high as well as low-involvement product category in changing the consumer’s attitude towards the advertisement. The research has used print media for conducting the experiment. Practical implications – It can be inferred that comparisons should be supplemented with additional information in the form of the unique features and associated emotions and feeling of the product in order to develop favourable attitude towards the brand and PI. Originality/value – Comparative advertising is a growing domain and there has been very little contribution by the researchers specially on high and low-involvement product categories.


2019 ◽  
Vol 28 (6) ◽  
pp. 758-770
Author(s):  
André Le Roux ◽  
Marinette Thébault ◽  
Yves Roy

Purpose The purpose of this study is to explore the impact of product category and consumers’ motivations profiles on the determinants of consumers’ preferences and purchase intentions of counterfeits and genuine products, through manipulation of product attributes and purchase situations. Design/methodology/approach The study relies on an experimental design involving a questionnaire on a convenience sample with two parts: a tradeoff model manipulating three attributes, product type (genuine vs. counterfeit), price (high vs. low) and place of purchase (regular shop, Internet and market) in two product categories, and a scale measuring motivations to purchase counterfeits. Ranking and purchase intentions are analyzed using conjoint analysis and generalized linear mixed model (GLMM). Findings Ranking reveals a dominant pattern of consumer behavior regarding counterfeiting: product type, price and place of purchase. Product category has a moderating effect on choice criteria: relative importance of place of purchase and price varies according product category. Consumers’ motivations profiles have also a moderating effect on consumer behavior. Some profiles are more receptive to copies. Consumers’ profiles exhibit different hierarchies of purchase criteria and may change them depending upon product category. Originality/value Results challenge literature on the dominant role of price among choice criteria. Price alone cannot determine a counterfeit purchase. It is the interaction of price, place of purchase or product type that explains such a behavior. Product category matters: Price and place of purchase importance cannot be considered without accounting for product category. Consumers’ motivations profile matters. Consumers are not homogeneous face to counterfeits.


2018 ◽  
Vol 56 (8) ◽  
pp. 1663-1681 ◽  
Author(s):  
Byoungho Jin ◽  
Moudi O. Almousa ◽  
Heesoon Yang ◽  
Naeun Kim

Purpose While country image consists of two hierarchical images – macro country image at the country level and micro country image at the specific product level – previous studies have largely failed to detail its varying effects by product category and by the level of a country’s economic development. The purpose of this paper is to examine the impact of the macro and micro country images of four countries (USA, Italy, Korea, and Malaysia) on Saudi consumers’ purchase intentions in two product categories (symbolic and functional product). Design/methodology/approach Data were collected from shoppers older than 20 years of age at several shopping malls in Riyadh, Saudi Arabia via mall intercept method. Findings Analyses of 496 data revealed that the effects of macro and micro country images differ by product category. In particular, both macro and micro country images were equally relevant to the purchase intention of symbolic goods (i.e. handbags), while micro country image played a greater role in the purchase intention of functional goods (i.e. cell phones). A partial country moderating effect was found. The effects of micro country image on the purchase intention of handbags were valid only in Italy, where product-country match is high. Originality/value This study advances country image research by highlighting how the effects of macro and micro country images on purchase intention differ by product category and by country. The findings suggest which aspect of country image (i.e. macro vs micro) should be actively communicated in the marketing of symbolic and functional goods.


2019 ◽  
Vol 9 (4) ◽  
pp. 490-506 ◽  
Author(s):  
Sergio Rivaroli ◽  
Arianna Ruggeri ◽  
Roberta Spadoni

Purpose As indicated in the Italian law (No. 109-1996), agri-food co-operatives can also play a role in combatting mafia-type systems by choosing to grow their food products in lands confiscated from mafia-type organisations. These food products provide individuals with a new opportunity to fight criminal organisations on the marketplace. The purpose of this study is to explore how people react to a social marketing initiative devoted to promoting food “buycotting” to counteract mafia-type organisations in Italy. Design/methodology/approach The data were obtained from a convenience sample of 339 Italians, and the study adopted a model inspired by the general theory of marketing ethics. A structural equation model was applied to estimate both the parameter and coefficient functions. Findings Individuals recognise the ethical value of “buycotting”. However, they perceive this form of critical choice as not yet being fully effective in counteracting mafia-type systems in Italy. Practical implications The results suggest that promotional and psychological approaches from marketing literature can be effectively used to influence the consumer’s ethical judgement by selectively communicating and emphasising the benefits of the critical consumption investigated. Originality/value This is one of the first studies to address consumers’ ethical judgments and their reactions towards buycotting food as a critical choice to reward socially responsible corporations.


2015 ◽  
Vol 43 (6) ◽  
pp. 561-574 ◽  
Author(s):  
Patricia Huddleston ◽  
Bridget K. Behe ◽  
Stella Minahan ◽  
R. Thomas Fernandez

Purpose – The purpose of this paper is to elucidate the role that visual measures of attention to product and information and price display signage have on purchase intention. The authors assessed the effect of visual attention to the product, information or price sign on purchase intention, as measured by likelihood to buy. Design/methodology/approach – The authors used eye-tracking technology to collect data from Australian and US garden centre customers, who viewed eight plant displays in which the signs had been altered to show either price or supplemental information (16 images total). The authors compared the role of visual attention to price and information sign, and the role of visual attention to the product when either sign was present on likelihood to buy. Findings – Overall, providing product information on a sign without price elicited higher likelihood to buy than providing a sign with price. The authors found a positive relationship between visual attention to price on the display sign and likelihood to buy, but an inverse relationship between visual attention to information and likelihood to buy. Research limitations/implications – An understanding of the attention-capturing power of merchandise display elements, especially signs, has practical significance. The findings will assist retailers in creating more effective and efficient display signage content, for example, featuring the product information more prominently than the price. The study was conducted on a minimally packaged product, live plants, which may reduce the ability to generalize findings to other product types. Practical implications – The findings will assist retailers in creating more effective and efficient display signage content. The study used only one product category (plants) which may reduce the ability to generalize findings to other product types. Originality/value – The study is one of the first to use eye-tracking in a macro-level, holistic investigation of the attention-capturing value of display signage information and its relationship to likelihood to buy. Researchers, for the first time, now have the ability to empirically test the degree to which attention and decision-making are linked.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zachary Robichaud ◽  
Hong Yu

PurposeA global shift in ethical/sustainable purchase drivers highlights Generation Z (persons aged 15–24) as an important market for producers and marketers. Although much research has touched on fair trade consumption, very little has focused on Gen Z's consumption patterns. This study provides insights into and implications of younger consumers' motivations in ethical/sustainable consumption.Design/methodology/approachThis research examines Gen Z's purchase intention towards fair trade coffee with the theory of reasoned action framework. Data were collected with a convenience sample, and analyses were conducted using structural equation modelling.FindingsThe research found a significant influence of knowledge of fair trade towards product interest. Furthermore, general attitudes towards fair trade had a significant influence on product interest, product likeability and convenience. Lastly, product interest and subjective norms significantly influenced Gen Z's purchase intentions towards fair trade coffee.Originality/valueFindings suggest that Gen Z's shift in ethical/sustainable consumption revolves around their subjective norms or peer influence circles and contributes to the notions of self-branding, identify claims and social currency. Younger generations are digital natives, and social media has created a looking glass into their actions. This digital expansion has created more opportunities for individuals to monitor the actions of others and release information in real-time. Therefore, ethical/sustainable consumption by Gen Z can be used as a communication tool among their peers to project personal values and ideological shifts and to influence others close to them.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mazzini Muda ◽  
Muhammad Iskandar Hamzah

PurposeIn spite of the increasing organic and interactive marketing activities over social media, a general understanding of the source credibility of voluntary user-generated content (UGC) is still limited. In line with the social identity theory, this paper examines the effects of consumers' perceived source credibility of UGC in YouTube videos on their attitudes and behavioral intentions. Additionally, source homophily theory is included to predict the antecedent of source credibility.Design/methodology/approachThree hundred and seventy two Generation Y respondents were interviewed using snowball sampling. Data were analyzed with component-based structural equation modeling technique of partial least squares-structural equation modeling (PLS-SEM).FindingsFindings confirmed that perceived source credibility indirectly affects purchase intention (PI) and electronic word-of-mouth via attitude toward UGC. Besides, perceived source credibility mediates the effect of perceived source homophily on attitude toward UGC.Practical implicationsSince today's consumers have begun to trust and rely more on UGC than company-generated content on social media when making purchase decisions, companies may reconsider democratizing certain aspects of their branding strategies. Firms may fine-tune their marketing communication budgets – not only just by sponsoring public figures and celebrities but also by nurturing coproductive engagements with independent content creators who are ordinary consumers. Endowed with their imposing credibility, these micro-influencers and prosumers have high potentials to be uplifted to brand ambassadors.Originality/valueWhile consumers' purchase outcome can be measured easily using metrics and analytics, the roles of source homophily in stages leading up to the purchase is still elusive. Drawing on the rich theoretical basis of source homophily may help researchers to understand not only how credibility and attitude are related to PI but also how this nexus generates positive word of mouth among UGC followers within the social media circles.


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