Consumer‐factors moderating private label brand success: further empirical results

Abstract

2 Consumer-factors Moderating Private Label Brand Success: Further Empirical Results AbstractPurpose-This research examines the category-level differences of both risk perception and brand loyalty effects on consumer proneness towards buying private label brands (PLBs).Methodology/Approach-This study extends the work of Batra and Sinha (2000) (B&S) by also examining the PLB effects of brand loyalty and price-quality by product category using a mallintercept survey. Findings-The 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/implications-This research confirms the importance of price consciousnessand 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 implications-Retailers 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 and value-The study shows that it is important to consider product category differences which makes it more difficult to generalize about PLB purchasing.

The development of a consumer value proposition of private label brands and the application thereof in a South African retail context

“…This information is derived from a multitude of sources, including traditional advertising (Arens et al, 2012;Yang et al, 2005;Agrawal, 1996), word of mouth correspondence with friends, family and colleagues (Trusov et al, 2008;Allsop et al, 2007;Brown et al, 2007), as well as actual experience of using the brand (Glynn and Chen, 2009;Erdem and Swait, 1998). These ongoing phenomena supplement the influences that consumers experience in an instore environment.…”

“…Furthermore, consumers who exhibit brand loyalty to a particular brand usually develop a habit of purchasing said brand, due to an emotional attachment as well as satisfaction related to previous purchases of the brand (Lim and Razzaque (1997) as cited in Glynn and Chen (2009)). A further rationale for the differing loyalty to NBs and PLBs surrounds the extrinsic cues related to distribution (Glynn and Chen, 2009). NBs experience greater distribution intensity, whereas PLBs, by their very nature, are only available in particular stores (Glynn and Chen, 2009).…”

Retail Brand Extension: The Moderating Role of Product Knowledge

“…Batra and Sinha (2000) found that store brand buying increases when overall risk perception declines. The higher the perceived risk associated with the PL purchase, the lower the PL proneness (Glynn and Chen 2009).…”

Theorising the Concept of Product Branding: A Qualitative Approach to the History of Branding; the Case of the Nigerian Milk Industry

“…The studies done by Raza & Rehman (2012); Jabbar & Baldwin (2010) reveal that perceptions can be influenced by the association of brand with images of the product. According to Glynn & Chen (2009); perception of a product's quality is one of the most important elements for a brand and quality can be combined with prompts.…”