From Understanding Consumer Behaviour to Testing Category Strategies

Johnston, Maureen; Felice, Paula

doi:10.1177/147078539904100303

Cited by 20 publications

(26 citation statements)

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“…This supports the view of Farris and Kusum (1992) and Johnson (1999) that retailers cannot push store brands too much at the expense of national brands as national brands continue to be major traffic builders and reducing their presence may make the store less attractive to its most profitable shoppers. Yavas and Babakus (2009) stated that national brands are traffic builders, boost sales and a reduction in the portfolio of national brands offered may render a store less attractive to profitable customers.…”

Section: Statedsupporting

confidence: 84%

The impact of private label brands on customer loyalty and product category profitability

Pepe

Abratt

Dion

2011

Journal of Product &Amp; Brand Management

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Purpose -The purpose of this study is to investigate the influence of private label resources possessed by a supermarket retailer on the shopping behavior of loyal customers. The study examines whether or not private label products can help in the overall enhancement of product category performance. Design/methodology/approach -The paper examines the performance of a supermarket retailer in the Northeast United States that operates over 100 stores and generates a total yearly sales volume in excess of $3 billion. Data obtained from the Supermarket's point of sale information were used. The paper then developed a research model from the literature review and used structural equation modeling to analyze the data. Findings -The findings show that overall dollars spent by loyal customers significantly impacted overall profitability.Research limitations/implications -The data collected pertained to the supermarket's grocery department that is comprised of center store dry grocery products, frozen food products, and refrigerated dairy products. Perishable departments such as deli, seafood, meat, bakery, floral, general merchandise, health and beauty care, etc. were not researched in this study. Also, data obtained were from one individual supermarket chain. Practical implications -Although private label products may represent increased profitability for retailers, consumers prefer a full assortment of merchandise; an over emphasis on private label brands may result in diminishing category performance. Originality/value -The paper examines the performance of a supermarket retailer in the Northeast United States that operates over 100 stores and generates a total yearly sales volume in excess of $3 billion. The use of scanner data has value as it measures actual shopping behavior.

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Section: Statedsupporting

confidence: 84%

The impact of private label brands on customer loyalty and product category profitability

Pepe

Abratt

Dion

2011

Journal of Product &Amp; Brand Management

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“…In this context, retailer ability in communicating and conceiving the consumer's preferences with signs can also influence consumers' switching decisions of the OOS item in retail stores. Generally, consumers have little knowledge about the vast variety of products and prices in retail stores (Engel et al 1973;Woodside and Waddle 1975;Johnson 1999). Despite this general lack of knowledge, information signs made by retailers generally contain only the price of the product.…”

Section: Journal Of International Consumer Marketingmentioning

confidence: 99%

Reducing the Out-of-Stock Costs in a Developing Retailing Sector

Kucuk

2004

J. of Int. Consumer Marketing

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Because of the unavailability of sufficient distribution systems and technology in many developing nations, retailers must often solve the out-of-stock (OOS) problem alone within their stores, rather than relying on their suppliers. However, many OOS studies have shown that OOS costs are determined by consumer responses, which are mainly stimulated by brand and store loyalty, to the OOS item. In this study's context, the influences of in-store merchandising and store attractiveness factors on consumers' brand and store loyalties in OOS situations were explored in Turkey's developing retailing sector. The Ordered Logit Model was determined to be the most appropriate for testing influences on 544 consumers' responses to OOS item in three different size stores. The results showed that in-store pricing generally influences store loyal consumers' brand-switching decisions in three stores for a specific soft drink in addition to the influence of in-store advertisement in larger size stores. Also, consumers' store-searching decisions may be influenced by the assortment richness of alternative stores in the OOS situation. Therefore, in order to avoid OOS costs, retailers should work to improve store loyalty by helping with in-store merchandising support

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“…For this reason, some researches consider this new model as a symbol of the evolution of retailers, which migrate from passive distributors to active members of the supply chain (Mcdonald and Wilson, 2011). For suppliers/manufacturers, this new model generates a big challenge; it provides convincing arguments so the retailers highlight their brands and, in the meantime, adapt, refine, or make changes to the strategies and management tactics, benefitting the category as a whole (Johnson, 1999).…”

Section: Management By Categorymentioning

confidence: 99%

Assortment planning: Strategic perception of retail owners and managers in Brazil

Veiga¹,

Veiga²,

Catapan³

et al. 2014

Afr. J. Bus. Manage.

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The goal of the Assortment Planning (AP) is to specify an assortment that maximizes sales and profits which counterbalance the offer of products based on the decisions made about sales; it also increases the probability for consumers to find their own favorite product without increase in storage costs or risk of stock out. This work aims to investigate the strategic perception of retail owners and managers about assortment. Specifically, this study will analyze the impact of assortment, clients' fidelity, level of service and profits on the vision of the retailer. It is an exploratory investigation of retailers' perception about assortment management. The results of this research allow one to interfere with the inadequate knowledge of the interviewees about the theme, mainly the smaller stores. Generally, it was verified that the owners and managers evaluated assortment planning as a primordial strategic tool and considered important a system of information. Although recognizing the strategic importance of AP in the control of unproductive variety, the consumer of retail goods, mainly the small retailer uses the intuitive judgment related to the use of analytic methodology.

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From Understanding Consumer Behaviour to Testing Category Strategies

Cited by 20 publications

References 0 publications

The impact of private label brands on customer loyalty and product category profitability

The impact of private label brands on customer loyalty and product category profitability

Reducing the Out-of-Stock Costs in a Developing Retailing Sector

Assortment planning: Strategic perception of retail owners and managers in Brazil

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