Abstract:Purpose
The evolution of private labels (PL) is a recent trend in the retail industry: many retailers now manage a PL portfolio that includes multiple value propositions, as well as various brand name strategies. Little research has been done, however, on how this combination of PL strategies conditions the results of the retailer that manages them. This study aims to examine the formation of PL brand equity and its effect on store loyalty for retailers with differently tiered PL programs (a “better” program w… Show more
“…Hypothesis 7 is therefore partially supported by our data. Thus, this research partially confirms previous studies (Martos-Partal and González-Benito, 2011; Diallo et al , 2015; Rubio et al , 2019) that indicated that SBs' positioning has an impact on consumers' behaviour (e.g. their loyalty to the SBs/the store or the value of the store).…”
Section: Resultssupporting
confidence: 89%
“…copycat) has a more favourable effect on store loyalty than positioning that prioritizes price over quality (generic SBs). Recently, Rubio et al (2019) indicated that in portfolios with economy, standard and premium SBs, SB associations have a stronger effect than SB awareness in the formation of SB loyalty. Portfolios with a standard SB show balanced effects of SB associations and SB awareness on SB loyalty formation.…”
Section: Theoretical Framework and Research Hypothesesmentioning
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).
“…Hypothesis 7 is therefore partially supported by our data. Thus, this research partially confirms previous studies (Martos-Partal and González-Benito, 2011; Diallo et al , 2015; Rubio et al , 2019) that indicated that SBs' positioning has an impact on consumers' behaviour (e.g. their loyalty to the SBs/the store or the value of the store).…”
Section: Resultssupporting
confidence: 89%
“…copycat) has a more favourable effect on store loyalty than positioning that prioritizes price over quality (generic SBs). Recently, Rubio et al (2019) indicated that in portfolios with economy, standard and premium SBs, SB associations have a stronger effect than SB awareness in the formation of SB loyalty. Portfolios with a standard SB show balanced effects of SB associations and SB awareness on SB loyalty formation.…”
Section: Theoretical Framework and Research Hypothesesmentioning
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).
“…As previously stated, OBE always shows a positive and significant influence on other consumer behavior construct(s), such as store loyalty (Rubio et al, 2019), advocacy behavior (Baghi et al, 2016), and surely purchase intention (Chen and Chang, 2008;Moradi and Zarei, 2011;Tharmi and Senthilnathan, 2012;Buil et al, 2013;Shah et al, 2016;Vahdati and Nejad, 2016;Samadi et al, 2017;Akturan, 2018;Poturak and Softic, 2019). However, among MBE based studies, there are conflicting results.…”
Section: Brand and Brand Equity In Higher Educationmentioning
PurposeThis paper aims to propose a conceptual framework to bridge the gap between the dimensions of brand equity (brand awareness, brand association and perceived quality) and the purchase intention of transnational higher education.Design/methodology/approachThe paper revisits and critically reviews the concepts of marketing in higher education, brand equity, and self-congruity as well as related past studies.FindingsSeveral past empirical studies concluded that the dimensions of brand equity have been unable to significantly influence purchase intention. The review and synthesis of the literature have supported the feasibility of self-congruity to mediate the relationship, thus closing the gap. This study has been able to extend the self-congruity concept into external and internal self-congruity to fit the context of this study which is transnational higher education choice.Originality/valueFocusing on a developing market of Indonesia, it is anticipated that the proposed model will assist the future research in branding of transnational higher education. It was hypothesized that educational brands that are congruent with prospective students' self-image both externally (from the perception by the reference group) and internally (from the perception by themselves) will be more likely to yield positive purchase intention. As a result, this study adds to the current body of knowledge in the field of transnational higher education choice which was found to be lacking.
“…International and national brands refer to those which are found in many countries around the world, while regional brands refer to those generally available in one country or a narrow geographical area (Winit et al, 2014). OBs have a variety of price and branding strategies which appeal to different consumer segments, with tiered product portfolios often used, rather than a single standard OB range (Lessassy, 2019;Rubio et al, 2019). Value ranges follow an economy strategy, avoiding expensive ingredients and packaging (e.g.…”
PurposeThe purpose of this study is to investigate the proportionality of market brand (MB) foods versus supermarket own brand (OB) foods sold on promotion and to compare their healthiness.Design/methodology/approachAn existing dataset containing nutritional information about a variety of foods on promotion (n = 6,776) from 48 stores across 8 retail chains in Northern Ireland (NI) was reanalysed. Product healthiness was measured using a score aligned to the Food Standards Agency's Front of Pack nutrient labelling system. MBs and OBs were considered as a whole and in their respective subsets–international/national and regional MBs, and premium, mid-market and value tiered OBs.FindingsResults found a balance in favour of health (52.4% amber/green versus 47.6% red) across retailers' promotions in NI. Further, OB products were often found to be superior to MBs with regards to overall healthfulness, and regional brands were found to be less healthy than international/national brands.Research limitations/implicationsFindings rationale further retail research to compare nutritionally OB and MB product types, and further consumer research regarding important attributes of OBs.Practical implicationsRetailers should communicate the comparative healthiness of their OBs in comparison to MB alternatives, in addition to communicating comparative price savings. There is opportunity for retailers to increase visibility of mid-market and value OB tiers, and for regional MBs to improve the nutritional profile of products in line with the consumer trend for health.Originality/valueThis study provides a contribution by using data on OBs and MBs on promotion, and by investigating the nutritional differences between different tiers of OB and MB products.
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