Private label brands: measuring equity across consumer segments

This study examines consumer-based brand equity of private-label branding and relative significance of its dimensions in creating a strong private-label brand. Based on brand equity theory and private-label branding research, a survey instrument was developed, scale measures were pretested, and the final purified survey was administered online to Wal-Mart shoppers. The study found that awareness/familiarity and perceived quality are keys in reducing the perceived risk and increasing the perceived value of private-label brands in building brand equity. Also, perceived risk, perceived value, and brand loyalty for Wal-Mart have significant mediating roles in creating private-label (i.e., Great Value) brand equity.

Consumer Perception of Private Label Brand in Apparel Retail Industry

PurposeThe purpose of this paper is to examine the category‐level differences of both risk perception and brand loyalty effects on consumer proneness towards buying private label brands (PLBs).Design/methodology/approachThis paper extends the work of Batra and Sinha by also examining the PLB effects of brand loyalty and price‐quality by product category using a mall‐intercept survey.FindingsThe results indicate that quality variability, price consciousness, price‐quality association and brand loyalty influence consumer proneness to buy PLBs. In addition, income, education and household size are moderators of PLB purchasing.Research limitations/implicationsThis research confirms the importance of price consciousness and quality variability on PLB purchasing. The importance of these determinants depends on both the product category and the PLB market share within the category.Practical implicationsRetailers and manufacturers need to consider the effects of PLB in relation to the product category. For retailers, the value of a PLB is less relevant in some categories but appealing to the price conscious consumer is important. Manufacturers should note in some categories that brand loyalty is important but not as much as price consciousness. Customer income is still an important determinant of PLB purchasing.Originality/valueThe paper shows that it is important to consider product category differences which make it more difficult to generalize about PLB purchasing.

PurposeThis paper aim to investigate how organic labeling impacts perceived value for money (PVFM) as well as attitudinal and behavioral brand loyalty for private label brands (PLBs). This impact is tested for different product categories and retailers.Design/methodology/approachTwo online experiments are conducted with different product categories (i.e. eggs and chocolate) and different retailers (i.e. Auchan and Carrefour). For each experiment, a multivariate analysis of covariance with brand type (i.e. PLBs and organic PLBs) as the independent variables, the PVFM and brand loyalty as the dependent variables as well as consumers’ characteristics, involvement with organic products and attitudes toward the retailer as the covariates is run.FindingsOn aggregate, organic PLBs prompt a higher PVFM as well as a higher attitudinal and behavioral loyalty than the PLBs. These results are consistent across the above-mentioned product categories and retailers.Research limitations/implicationsThis study advances knowledge on organic labeling for the PLBs.Practical implicationsRetailers gain insights on the perceptions and behaviors toward organic PLBs versus standard PLBs.Originality/valueThis study tests how an organic label impacts the PVFM and brand loyalty for the PLBs.

Consumer perceptions of private label quality: the role of product category characteristics and consumer use of heuristics

PurposeThis exploratory research paper aims to contribute to the international marketing and brand development literature by demonstrating that significant cross‐national differences exist between Chinese and US university students regarding beliefs and perceptions of private label branding.Design/methodology/approachA total of 1,070 usable surveys were collected in the USA and 252 in China. Data analysis was conducted using SPSS data analysis software. The US student sample was collected from a comprehensive university located in the western USA. The Chinese sample was collected from a large university in Hefei. Hefei is the capital city of Anhui Province and a center for higher education.FindingsThe researchers compared US and Chinese university students in four areas: important attributes when purchasing food‐related products; beliefs about private label brands and price loyalty; perceptions about private label brands; and recognition of private label brands. US and Chinese respondents had statistically significant differences when addressing beliefs and perceptions concerning private label brands. Most notable is the difference concerning product pricing: US consumers indicate that price has a greater effect on the decision to purchase when compared with Chinese consumers. The data seem to indicate that Chinese consumers believe that private label food products may be of inferior quality compared to manufacture brands. Additionally, the data indicate indirectly that Chinese respondents either do not have an understanding of private label products, or that private label names are not recognized as such.Research limitations/implicationsOne limitation of this paper is that the data may indicate the non‐availability of private label products to Chinese consumers, rather than a perception that private label products are of lower quality. Additionally, this study documents perceptions regarding private label products, not why respondents perceive private label products in a certain way. A final limitation is that respondents are university students that, while they are excellent candidates, they probably do not currently hold the role of main food purchaser for their families. Future research would benefit from a broader demographic that includes non‐students as well as a larger number of private label categories. Comparing how marketers educated consumers regarding private label products in western markets, and how private label products are integrated into western markets could be used as a template for a successful rollout in Asian markets.Originality/valueWhile this study was exploratory in nature, and narrow in scope, the possibilities of long‐term research in private label branding in emerging market economies is quite exciting. Will the Chinese adopt private label products, as US consumers have done? To this end, a proverb from Deng Xiaoping seems appropriate: “Black cat or white cat: If it can catch mice, it's a good cat.” Whether a private label brand or a manufacture brand, it is up to marketers to help the Chinese consumers see value in both types of brand offerings.

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.

Offering value and capturing surplus: A strategy for private label sales in a new customer loyalty building scenario

Trust transfer from manufacturer to private label brand: The moderating role of grocery store format

Synopsis Cara Pils is the private label beer brand of Colruyt, the biggest supermarket retailer in Belgium. As a true private label brand, Cara Pils has never been advertised. In 2015, Colruyt undertook an initiative to reposition its numerous private label brands under two larger private label brands. Unexpectedly, customers were incensed by this initiative, came out in droves and took the matter to social media hoping to lament the demise of their beloved brand. This case study investigates the roots of this strong brand attachment and the consequences for its brand management. Research methodology This case is built on primary (one in-depth interview and two focus group) as well as secondary data sources (previous research and web information). Relevant courses and levels This case is designed to be used in a marketing management or brand strategy course for students that already followed an introduction to marketing course or for students at a master level. Theoretical bases This case should provide the basis of discussions on the topics of brand management, private-label brands, repositioning strategy, brand portfolio management, brand architecture, brand equity, brand elements, brand nostalgia, and consumers’ relationships with brands.

Purpose – Private label brands of food products are an important component of many consumers’ purchases, as well as an integral element of the retail industry. The purpose of this paper is to examine the moderating role of trust on food private label brands’ purchase intention and loyalty. Design/methodology/approach – For this purpose, the authors propose and empirically test a conceptual model comprising variables such as price, familiarity and store image. A sample of 445 respondents was gathered, and the hypotheses were tested performing structural equation modelling. Findings – The findings highlight the moderating influence of trust on consumers’ loyalty to food private label brands. In addition, the results obtained reveal the substantially great influence of private label brand familiarity on purchase intention and loyalty. So, it seems that consumer trust and loyalty are strongly associated regarding food private label brands. Research limitations/implications – The authors suggest that trust of food private label brands allows retailers to increase consumer loyalty. Practical implications – Consequently retail managers should consider the enhancement of trust in the context of a marketing strategy formulation for food private label brands. Originality/value – The present study provides insights into the moderating effect of trust on loyalty to food private label brands, as well as evidence of the strong influence of familiarity on private label brands’ proneness, related to food products.

Impact of Private Label Brands of Milk on Competition in Fluid Milk Markets

A retailer’s brand name is more than just a name or a symbol, it is a tool used to differentiate one retailer from another and advance store positioning. This study examines the effect of retailers’ private label brand (PLB) negative publicity on PLB image, and retailers’ store image as a result of this publicity. Empirical testing was conducted to check this effect in two situations: a private label as a family brand extension of the retailer’s name and a brand name that is independent from the retailer’s name. Findings show that negative publicity mainly has an influence on the PLB's image dimensions, but not on overall store image. PLB name type was found to be insignificant in most cases.

Purpose – There is increasing managerial and academic interest in understanding behavioural loyalty to private label (PL) brands. A widely used behavioural loyalty measure is share of category requirements, or “SCR”. This study aims to examine why some PLs enjoy higher levels of SCR compared to others. Design/methodology/approach – The study models consumer purchase data using the well-accepted NBD-Dirichlet model to identify the circumstances in which PL brands exhibit higher (“excess”) or lower SCR than expected. Findings – The study finds four factors linked to excess SCR for PLs. They are: higher share of overall category sales accounted for by the PL within the retailer's stores, higher penetration of the category by the retailer, low relative price of the PL, and lastly, lower average purchase frequency for the category overall. Research limitations/implications – While the study uses 13 product categories, its geographic scope is limited to the UK. Further research could examine how the findings generalize to other markets. Originality/value – The study is original in that it identifies factors that are linked to behavioural loyalty toward specific PL brands. The findings will help marketers in brand management and retailing to understand and contextualize brand performance metrics for PL brands.

Deals with brand management issues concerning brand as a resource for an industrial distributor. The brand resource can either be controlled by the producer – producer brand – or the distributor – private label brand. Analyzes the characteristics of managing the brand resource depending on whether it is a producer or private label brand. This is done from the perspective of the distributor. In order to undertake this research task, a theoretical framework derived from the industrial networks approach is used. The designed framework focuses on three central concepts – the resource intradependence, the resource interdependence, and the resource interdependence connection. The framework is analyzed on three respective levels, i.e. the company, the relationship and the network levels, and we present the results of the analysis, which indicate what influences the opportunities and constraints that management are faced with when making decisions concerning branding in an industrial context. The data has been collected through personal interviews among paper producers and paper merchants within the fine‐paper industry in the UK.