Purpose
– The aim is to understand customers' willingness, or unwillingness, to pay a price premium in the market for consumer packaged food and what kind of images brands can use in order to achieve a price premium.
Design/methodology/approach
– The study is based on a quantitative survey of brand images found in food and branding literature and their impact on loyalty as well as customers' willingness to pay a price premium for consumer packaged food.
Findings
– The survey shows that quality is a significant determinant of price premium, but adding other image dimensions doubles the predictability and understanding about price premium. The strongest determinants of price premium are social image, uniqueness and home country origin. Other significant determinants are corporate social responsibility (CSR) and awareness.
Practical implications
– The results help brand managers to recognise the importance of incorporating price premium and to develop a better understanding of what drives price premium in addition to more traditional dimensions as quality and loyalty.
Originality/value
– In grocery retailing, the competition for customers, margins and price premiums between manufacturer and private labels is fierce. Traditionally, the literature on this competition has focused on quality and product improvements as the main tool for creating distance to low priced competition. This study looks into other more branding related dimensions to distance from price competition.
Purpose -This paper seeks to develop a framework for understanding what drives customer-based brand equity and price premium for grocery products. Design/methodology/approach -The paper reviews empirical studies made within the area of brand equity and studies of grocery products. It compares and analyses the results from an explorative and qualitative field study with previous research on brand equity and food quality. Findings -The study finds that brand equity and price premium focusing on the grocery sector specifically highlights the role of uniqueness, together with the four traditionally basic dimensions of brand equity proposed: awareness, qualities, associations and loyalty. Relevant brand associations (origin, health, environment/animal friendliness, organisational associations and social image), and quality attributes (taste, odour, consistency/texture, appearance, function, packaging and ingredients) specific to groceries are identified and proposed for future measurement scales and model validating research. Practical implications -The development of a customer-based brand equity model, that adds awareness, associations and loyalty to previous discussions on price and quality, brings to the table a more nuanced and multi-faced tool for marketing of consumer packaged food. Originality/value -The paper provides a framework for understanding, evaluating, measuring and managing brand equity for grocery products. As this paper presents the first conceptual brand equity framework for groceries, there is a contribution to research on food branding. Also, there is a contribution to the general field of brand equity as previous models have been very general.
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