Does advertising matter to store brand purchase intention? A conceptual framework

Abstract

PurposeThe hottest trend in retailing is the emergence of “premium” store brands. Though store brands are treated as important players in grocery store strategies, many retailers prefer price over quality and often prefer to invest in store promotion, while neglecting brand advertising. This paper's aims are to propose a conceptual framework, integrating advertising‐related psychographic factors which will be empirically tested.Design/methodology/approachData were collected through a survey of 206 participants randomly recruited among adult grocery shoppers. The study employs a factor analysis method following path analysis using AMOS 17 and structural equation modeling (SEM), based on the maximum likelihood approach.FindingsThe results show the salience of creating a strong and sustainable store brand through advertising and innovation. A store brand's perceived quality was found to be the most important factor in predicting store brand purchase intention, and advertising was found to have an indirect effect on perceived quality, shaped through extrinsic cues and novelty lovers' tendency variables.Practical implicationsRetailers are advised to change their promotional budget's allocation. Along with their in‐store promotions, retailers should invest more heavily in advertising their store brand and offering innovation, in order to build a strong and sustainable brand. The costs of advertising could be compensated by a growth of the total store sales and the store's gross margin.Originality/valueThe originality of this study lies in the conceptual framework proposed to examine the importance of building a strong store brand through advertising and innovation from a psychographic point of view.

Advances in National Brand and Private Label Marketing

“…Insufficient investment in the advertising of PL products can lead to improper familiarity or undesired emotion towards PL products, particularly among 'high' advertising lover consumers, who tend to rely highly on advertising as regards their brand perception and preferences (Levy and Gendel-Guterman 2012). Moreover, it was also found that non-user perceptions of PL show deviations from normal patterns.…”

Guerilla Marketing: Pengaruh Guerilla Advertising terhadap Awareness dan Image Produk bagi Perusahaan

“…Dengan adanya advertising akan membantu menciptakan brand awareness (kesadaran merek) dan brand image (citra merek). Secara umum advertising cenderung bersifat ditujukan kepada banyak orang dan ratarata berbiaya tinggi (Levy dan Gendel-Guterman, 2012).…”

Motivation and cognitive structures of store versus manufacturer brand consumers

“…Fitzell, ; Quelch and Harding, ) found quality perceptions of store brands significantly improved, while some recent studies (e.g. Levy and Gendel‐Guterman, ) postulate that a store brand's perceived quality is nowadays the most important factors in predicting purchase intention.…”

“…A common strategy of manufacturer brands to defend against rising market shares of store brands is sales promotions (Ailawadi et al ; Levy and Gendel‐Guterman, ). However, while some past studies (e.g.…”

“…Gedenk and Neslin, ) suggested that manufacturer brands' price levels should remain constant with their (superior) quality image in order to retain loyal customers, since consumers' willingness to pay premiums for manufacturer brands is mediated by their perceptions about the quality of those brands as opposed to store brands (Steenkamp et al ). Moreover, advertising is found to have an effect on perceived value of store brands (Levy and Gendel‐Guterman, ). Furthermore, congruence between store brand price positioning and store architecture also impacts on consumer intention to purchase store brands (Diallo et al , ).…”