Unbranding: threat to brands, opportunity for generics and store brands

Abstract

Purpose -Marketers devote great efforts to maintaining brand value. However, brand value can come under attack in the absence of sufficient product performance and image differentiation in a process called unbranding. This paper aims to provide insights and guidelines that will give marketing managers tools to deal with variables that impact consumer decisions on whether to buy a national brand or a store brand product. Design/methodology/approach -A consumer research study was based on a random, mall intercept with 188 respondents consisting of seven questions scored on a ten-point scale. The results are presented on a set of graphs accompanied with some analysis of means (ANOM) applications. Findings -Results indicated that a significant portion of consumers (from over 40 percent to a high of 85 percent) feel that the quality differences between branded and generic products have diminished and the price premiums charged by branded products are often no longer justifiable.Research limitations/implications -The findings of this study imply that in branded product premium image must be maintained and enhanced, otherwise it will be lost. In addition, the trend of brand value loss referred to as unbranding will vary significantly by and within a product category. Practical implications -Branded products must maintain their superior consumer perception and product performance. Store or generic brand marketers should exploit the favorable price-value relationship gained because of the loss of brand value through a process of store branding. Originality/value -The new concept of unbranding is introduced together with research-based recommendations for brand value protection strategies.

Factors affecting consumers’ willingness to buy private label brands (PLBs)

“…For many years, consumers characterised PLBs as low quality compared to their national brand counterparts (Richardson et al, 1996). However, this idea is changing as the level of quality of store brand has been progressing and advancing since the mid-90s, therefore allowing for holding more favourable attitude towards private labels, specifically in Western countries where private brands are well developed (Battersby, 2013;Mayer and Vambery, 2013;Ter Braak et al, 2014). Hence, consumers holding favourable store image SJME 22,3 are highly likely to perceive its PLB of high quality and vice versa (Bao et al, 2011).…”

A comparison between economic and organic store brands

“…At the same time, while the price-quality heuristic plays a key role in store brand evaluations (Collins-Dodd and Lindley, 2003;Gomez et al, 2016), literature notices that since 1300 IJRDM 45,12 the middle of the 1990s, the quality of store brands has been evolving (Burt and Davies, 2010;Mayer and Vambery, 2013;Ter Braak et al, 2014). Kumar and Steenkamp (2007) have described this evolution and the successive generations of store brands.…”

“…Store brands have been considered as serious rivals to national brands for more than two decades (Hyman et al, 2010;Mayer and Vambery, 2013;Quelch and Harding, 1996;Ter Braak et al, 2014), not only in terms of a good price-quality balance (Gomez et al, 2016), but also by forcing national brands to innovate and develop more effective promotions (Meza and Sudhir, 2010). Since the beginning of the 2000s, they have significantly contributed to retail differentiation (Ailawadi et al, 2008;Collins-Dodd and Lindley, 2003).…”