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

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.

2020 ◽  
pp. 231971452096870
Author(s):  
Sheikh Basharul Islam ◽  
Suhail Ahmad Bhat ◽  
Mushtaq Ahmad Darzi

Private-label brands (PLBs) are spreading their operations in all product categories and have marked their presence in almost all types of retail formats. They are posing stringent competition to national brands (NBs), be it offline (organized and unorganized) retail or online retail. Besides being favourites of value-conscious Indian consumers, PLBs are becoming a key focus of channel partners as well. In this context, the present research article is aimed at providing insights about how PLBs are able to garner the profit-centric interests of channel partners and how they are affecting the distribution of NBs in the unorganized retail sector. The study is based on information collected through semi-structured interviews with distributors and retailers from Haryana and Punjab. A thematic analysis was performed to draw meaningful inferences from the responses collected through the semi-structured interviews. The results reveal that channel partners’ interest in the high margins of private labels and their interest in maintaining long-term relationships with the latter make NBs vulnerable on parameters such as sales effort investment, in-store visibility, ordering quantity and frequency and numeric distribution. This study provides bases for understanding private label operations in the unorganized retail sector in India.


2011 ◽  
Vol 10 (2) ◽  
Author(s):  
Maria Patricia Gautama ◽  
Jony Oktavian Haryanto

Nowadays the development of Private Label Brands (PLBs) is increasing; this is proven by the increasing number of PLBs products in various product categories that we can found in several types of stores such as a supermarket, hypermarket format or in convenience store. PLBs have a very good opportunity in the market, considering many consumers are realizing that the price of PLBs which tend to be cheaper and with good qualities when compared with the price of national brands or product manufacturer. It also becomes interesting when it is known that the opportunities are widely open and it is proven with more and more retailers which aggressively producing PLBs. They give consumers more choices with a more affordable price but still provide good quality, especially in this world economy condition that tends to go down which of course also affect consumer purchasing power. By these reasons, the aim of the study is to determine whether the consumer and store image factors have a significant relationship in encouraging consumers to make PLB purchases, especially when it is moderated by PLB Image. The results showed that there are significant effect from consumer factors and stores image toward PLB purchase intention and its getting increase with the moderation of the PLB image.


2020 ◽  
Vol 49 (1) ◽  
pp. 145-163
Author(s):  
Sita Mishra ◽  
Gunjan Malhotra ◽  
Garima Saxena

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.


Author(s):  
S. Shyam Prasad ◽  
Shampa Nandi

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.


Author(s):  
Natalia Rubio ◽  
Nieves Villaseñor ◽  
Maria Jesús Yague

This chapter develops a comprehensive analysis of the self-perception of value that the customer brings to the different retail chains present in the Spanish consumer goods retail sector. The authors incorporate a metric to determine the value that costumers have for the retail chains included in the study, and the brand equity of their store brands. The value supplied by their customers is defined as the perception of their loyal behavior and profitability on a long-term context. The measurement of this concept is based on personal judgments on repurchase intention and recommendation at present (named actual value), as well as their intention to acquire different products and brands sold by the company in the future (named potential value). Also, the chapter develops an analysis of the components that generate the brand equity of private label brands and their contribution to building customer value for the chains.


2020 ◽  
Vol 54 (3) ◽  
pp. 827-843 ◽  
Author(s):  
Rong Cheng ◽  
Weimin Ma ◽  
Hua Ke

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.


2020 ◽  
Vol 57 (4) ◽  
pp. 677-694 ◽  
Author(s):  
Kristopher O. Keller ◽  
Inge Geyskens ◽  
Marnik G. Dekimpe

The authors study the consequences of rebranding multiple category-specific private-label (PL) brands by “opening the umbrella” and unifying them under a common brand name. Retailers expect positive consequences that may manifest themselves in two ways: (1) an increased intrinsic brand strength and (2) an improved marketing-mix effectiveness. The authors analyze three substantially different retailers that rebranded one of their PL tiers. Consistent with the national-brand literature on umbrella rebranding, all three retailers realized an increase in the rebranded PL tier’s intrinsic brand strength, along with a reduced price elasticity. However, and in contrast to the national-brand literature, the effectiveness of both price-promoting and assortment size dropped for all three retailers after they unified their category-specific PLs under a common umbrella name.


2020 ◽  
pp. 243-269
Author(s):  
Mónica Gómez-Suárez ◽  
Carmen Abril

Many national brands adopt innovation strategies based on frequent launches of new products to defend and grow market shares against private labels. However, retailers imitate the novelties of national brand new products very fast. One of the key questions to assess the effectiveness of national brands' product innovation is to get a deeper understanding of how consumers react in terms of choice when faced with a national brand new product and a me-too private label product. In particular this research explores the effects of consumer innovativeness and risk aversion on this choice in five European countries and the United States. Results show that consumers with higher innovativeness prefer national brands. However, there are significant differences among countries depending on their uncertainty avoidance and risk aversion.


Sign in / Sign up

Export Citation Format

Share Document