Proliferation of private labels in the groceries sector: The impact on category performance

Olbrich, Rainer; Grewe, Gundula

doi:10.1016/j.jretconser.2012.10.004

Cited by 25 publications

(16 citation statements)

References 35 publications

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“…The current pricing autonomy of retailers allows them to use certain pricing tactics , and national brands are sometimes sold with aggressive price campaigns (Olbrich & Grewe, 2013). Special price offers from retailers undermine national brand price positioning and contribute systematically to the erosion of consumers' willingness to pay for national brands.…”

Section: Competition Between National Brands and Private Labelsmentioning

confidence: 99%

“…The brands lose their elevated position with consumers, and private labels gain market share. A further action at the retail level is in the use of national brands in an "umbrella pricing" context (Olbrich & Grewe, 2013). To increase private-label sales, retailers frequently use national brands as reference products to help consumers assess private-label prices.…”

Section: Competition Between National Brands and Private Labelsmentioning

confidence: 99%

“…They price national brands significantly higher to make private labels appear cheaper and more attractive. To further the effect, they display the lower prices of private labels on shelves and in brochures, where private-label products look similar to corresponding national brands (Olbrich & Grewe, 2013;Orenstrat, 2014). This approach lowers national brand loyalty, reduces consumers' willingness to pay for national brands, and leads to a shift in demand (Hundt, 2014;Olbrich & Hundt, in press In Figure 3, we present a framework of actions retailers take to support private labels by influencing consumer perceptions and reactions.…”

Section: Competition Between National Brands and Private Labelsmentioning

confidence: 99%

“…A positive turnover trend can be found only in discount stores. Olbrich & Grewe (2013) analyze how retailer assortment and pricing policy promotions, designed to increase sales of private labels, affect the level of category performance. The findings, based on point-of-sale scanning data from the German grocery sector, are surprising: Extending the range of private labels and reducing that of national brands does not lead to greater category performance.…”

Section: Purchasing Behavior: a Detailed Viewmentioning

confidence: 99%

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Proliferation of Private Labels in Food Retailing: A Literature Overview

Olbrich¹,

Hundt²,

Jansen³

2016

IJMS

Self Cite

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This article provides an overview of private-label research by focusing on the food retailing sector. To explain the proliferation of private labels, we identify key drivers by reviewing the determinants discussed in prior literature. This article identifies the conditions that support the proliferation of private labels-retailer concentration and retailer pricing autonomy-and describes the nature of competition between private labels and national brands. It also highlights the drivers of private-label purchases by providing an overview of brand-related determinants, price and risk-related determinants, quality aspects, sociodemographics, and consumer purchasing behavior. The article concludes by proposing three areas for future private-label research.

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Section: Competition Between National Brands and Private Labelsmentioning

confidence: 99%

Section: Competition Between National Brands and Private Labelsmentioning

confidence: 99%

Section: Competition Between National Brands and Private Labelsmentioning

confidence: 99%

Section: Purchasing Behavior: a Detailed Viewmentioning

confidence: 99%

See 2 more Smart Citations

Proliferation of Private Labels in Food Retailing: A Literature Overview

Olbrich¹,

Hundt²,

Jansen³

2016

IJMS

Self Cite

View full text Add to dashboard Cite

show abstract

“…And since customers demand certain national brands, the retailer needs to stock and sell different brands in their stores. If the brand assortment does not live up consumer demands, the retailer would risk losing customers to other retail competitors (Ailawadi 2001;Ailawadi and Keller 2004;González-Benito and Martos-Partal 2012;KPMG 2000;Mårtenson 2007;Ngobo 2011;Olbrich and Grewe 2013;Sloot and Verhoef 2008;Vahie and Paswan 2006).…”

Section: Introductionmentioning

confidence: 99%

Manufacturer brands versus private brands: Hoch's strategic framework and the Swedish food retail sector

Anselmsson

Johansson

2013

The International Review of Retail, Distribution and Consumer R

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Motivation and cognitive structures of store versus manufacturer brand consumers

Krystallis

2015

J of Consumer Behaviour

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The present paper offers empirical evidence about the impact of the type and characteristics of the brand category (i.e. perceived purchasing risk and involvement) as drivers of store brand choice. The means‐end chains analysis methodology was applied on a sociodemographically homogeneous consumer sample, assigned through a 2 × 2 in‐between subjects design into four subgroups of regular (orange juice or toothpaste) store or manufacturer brand buyers, respectively. The introduction of a store brand fueled motivations and cognitive structures that were predominantly shaped by the specific brand type and its expected perceived benefits (i.e. good quality/price ratios); on the contrary, manufacturer brands allowed room for typical, category‐related motives and cognitive hierarchies to dominate. Moreover, in the case of store brand buyers across categories (orange juice versus toothpaste), different perceived risk and consumer involvement had a clear impact on the structure of overall cognitive map and on the sophistication of its most dominant cognitive area. In situations of high perceived risk and involvement, the cognitive structures of store brand buyers tend to resemble that of manufacturer brand buyers. Results add to the ongoing stream of research on store brand buyer behaviour by offering proof of the impact of consumer perceived risk and category involvement on the choice between manufacturer and store brands. Copyright © 2015 John Wiley & Sons, Ltd.

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Proliferation of private labels in the groceries sector: The impact on category performance

Cited by 25 publications

References 35 publications

Proliferation of Private Labels in Food Retailing: A Literature Overview

Proliferation of Private Labels in Food Retailing: A Literature Overview

Manufacturer brands versus private brands: Hoch's strategic framework and the Swedish food retail sector

Motivation and cognitive structures of store versus manufacturer brand consumers

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