Advances in National Brand and Private Label Marketing

Private label purchases have become a mainstay of consumer shopping in the fast-moving consumer goods (FMCG) sector, with 98% of U.S. consumers purchasing private label brands (Market Force Information 2014). However, private label usage is not uniform across consumer groups. According to Store Brands (2017), 10% of shoppers are heavy users of private label brands, while 41% of shoppers are light users. Although work on the consumer private label purchasing decision exists, much of the research centers on consumer characteristics. The lens of consumer characteristics is limited in depth. We seek to extend the view of the consumer decision to purchase private label brands through the lens of personal values. Personal values relate to personal goals, which act as guiding principles of one’s life. In marketing, Vinson et al. (1977) mentions the importance of personal values; examining values allows research to test beyond consumer demographic and even psychographic characteristics. Therefore, establishing the link between consumers’ personal values and private label brands provides a much richer understanding of a consumer’s motivation to purchase private label brands.

The aim of this exploratory research was to investigate the strategies European banks pursue in branding their financial products. For this purpose, we drew upon both onomastics, a sub-discipline of linguistics, and branding, and, hence, bridged the gap between linguistics and marketing. In particular, we selected a corpus of account names in Germany, Austria, Italy, France, Rumania, and Hungary for our qualitative analysis. The results reveal that in Germany, Austria, and France, parent brands (bank names) appear to be rarely used. In Italy some names seem to generate associations with slogans for fast-moving consumer goods. Whereas in Germany, Austria, Italy, and France, account names refer to different target groups, English elements appear to be employed to a lesser extent in France than in the other countries. Only German banks apply a co-branding strategy in cooperation with, especially, German sports clubs and teams. Generally, Rumanian and Hungarian account names show only few phonetic and graphic particularities. They seem to be rather descriptive and, hence, lack creative power. Our findings may help marketers in retail banking to create awareness of some linguistic features they may consider when branding their financial products.

The purpose of this study is to evaluate consumers’ reactions toward drone delivery service. Qualitative data was collected based on comments posted following a YouTube video. A thematic inductive analysis was used in order to analyze the data based on YouTube participants’ comments. The results of this study revealed that similarly to any other forms of innovation, consumers’ expressed their resistance to this form of delivery in two forms: cognitive and affective. Taking into account that drone delivery service is still under the testing phase, this study was limited to finding sufficient and actual users who can contribute to the study with real and concrete concerns. This limitation restricts our understanding of consumers’ reactions to drone delivery service to theoretical assumptions. Commercial companies and retailers may benefit from this research to get a deeper understanding about the main consumers’ concerns and perceived risks towards the drone delivery service. Thus, this research may guide companies with ideas on how to better serve customers to increase the chances of adoption. Previous literature has largely explored the concept of technological innovations. However, no research to date has studied consumers’ reactions towards this new form of delivery service.

Fashion is one of the most popular retail categories (PwC 2016), and has enjoyed a high growth rate in the recent years, especially in the online channel (PwC 2016). The (online) fashion sector is characterized by: fast offer turnaround, a big number of unique SKUs having to account for multiple colors and sizes, as well as demand uncertainty due to dynamically changing fashion trends. Because of these characteristics, consumers are often confronted with huge variations in assortment and tend to regularly face stock-outs or messages suggesting there are only a few items left of certain SKUs. Massive differences in items’ stock levels are indeed reported to be one of the key issues in the sector (e.g. Contalog 2016).

Against the background of increasing proliferation of private labels (PLs), the present study analyses determinants for the manufacturer brand industry to influence the market share of national brands (NBs). The analysis is based on 7,211,154 purchases by 98,326 households over a period of ten years. All purchases come from four product categories; chocolate, coffee, hair shampoo, and laundry detergent. The analysis distinguishes between discounter and non-discounter, which show significantly different results. The considered determinants are the prices of NBs and PLs, the shares of NB and PL price promotions, NB and PL variety, and brand preference. In particular, the changes in these determinants and in the market share are considered by calculating intertemporal differences. Increasing (decreasing) the price of NBs leads to a decreasing (increasing) market share of NBs. Extending the shares of NB (PL) price promotions has a positive (negative) influence on the market share of NBs. An increase in NB variety (increase in PL variety) slightly increases (decreases) the market share of NBs. Furthermore, the manufacturer brand industry can positively affect households’ brand preferences to increase their market share in discount store settings.

Price discounts, known as markdowns, are important for fast fashion retailers to utilize inventory in a distribution channel using demand management. Estimating future demand for a given discount level requires the evaluation of historical sales data. In this evaluation recent observations might be more important than the older ones as majority of price discounts take place at the end of a selling season and that time period provides more accurate estimations. In this study, we consider a weighted least squares method for the parameter estimation of an empirical demand model used in a markdown optimization system. We suggest a heuristic procedure for the implementation of weighted least squares in a markdown optimization utilizing a generic weight function from the literature. We tested the suggested system using empirical data from a Turkish apparel retailer. Our results indicate that the weighted least squares method is more proper than the ordinary least squares for the fast fashion sales data as it captures price sensitivity of demand at the end of a selling season more accurately .

The sponsorship of events, a below-the-line (BTL) activity, where one brand supports a property financially, or otherwise, enables it to create behavioural consequences like positive sentiment and word of mouth, as well as enhanced brand associations, trust and loyalty. While there are numerous works substantiating positive and negative effects of sponsorship, and intervening variables, that create long term stable brand attitudes, there are limited works that suggest ways for sponsors to communicate about sponsorship investments on social media, and their immediate behavioural outcomes. This work, using Twitter as social media platform, proposes one important dimension of a sponsor’s online communications, namely articulation, with sentiment and electronic word of mouth (e-WOM) as behavioural effects. Analysis of user tweet data of four grand slam tennis events for two years suggests that components of articulation (product-focused/event-focused) have mixed effects on positive sentiment and e-WOM respectively.

Many national brand manufacturers are struggling to maintain or grow their market share as they face increased competition. In search for strategic responses to this issue, academic research frequently suggests building stronger retailer relationships as an answer to this development. We add to this stream of literature by investigating the role of the in-store merchandiser as a relationship-building agent for national brand manufacturers. Surprisingly, academic research on the effectiveness of the use of in-store merchandisers is scarce. By conducting an experimental field study, we investigate how increased investments in in-store merchandisers translate into better manufacturer performance. Furthermore, we show that these effects can be explained with increased relationship satisfaction for the store managers. Thereby we show that in-store merchandisers can help enhance manufacturer performance through an improved relationship with retailers and add a new strategy to the relationship building portfolio of manufactures.

Previous research has shown that the impact of advertising on brand attitude depends on various factors, such as the visual elements shown in the advertisement. In this study, we investigate how factors influencing the attitude towards the brand change when advertisings and brands are presented in either a rural or urban context. We conducted two experimental studies that manipulated the experimental factors advertising context (urban vs. rural) and brand context (urban vs. rural), and investigated the mediating influences of attitude towards the advertising, mental imagery, and involvement towards the advertising. The findings show that attitude towards the brand is differently influenced by the advertising and brand context and that these effects are mediated by attitude towards the advertisement and mental imagery. Our findings indicate that marketers need to be aware of which advertising and brand content they choose for an advertisement to reach their target group in an appropriate manner.

Recent literature discusses the increasing relevance of technology-infusion in service encounters, but only a few studies empirically investigate the impact of technology-infusion within the interaction of the frontline employee service (FES) and the customer. Based on the assumptions and implications of Social Interaction Theory (SI), the findings of a quasi-experiment online study (N = 944) indicate a strong negative influence of the level of perceived barrier due to technology-infusion on the evaluation of the competence of the FES. Moreover, we adapt and extent SI theory towards the context of a technology-infused service encounter in order to emphasize the relevance of the customer’s evaluation of FES competence and its impact on customer satisfaction with the FES. Besides, we show that non-technology-infused service encounters will create the lowest barrier from customer perspective. However, interestingly, our results imply that customers value technology-infusion in service encounters, which is reflected in a higher willingness to pay.

Adopting a vegan diet can be beneficial in addressing public, health, and environmental concerns associated with increasing levels of meat consumption. However, veganism remains an underdeveloped area of investigation. The majority of studies on dietary lifestyles have focused on vegetarianism and there are only a limited number on consumer adoption of vegan diets and cultural differences in this regard. To close this gap, the study investigates consumers’ cognitive structures for adopting a vegan diet through exploring the hierarchical linkages between vegan product attributes, consequences of vegan product consumption and consumer values in two countries. The data were gathered via semi-structured laddering interviews with vegan consumers in Spain and Israel. These interviews were complemented with projective and enabling techniques to facilitate the elicitation of initial product attributes. The findings of the study reveal that the cognitive structures behind vegan consumption are comprised of abstract (e.g., eco-friendliness) and tangible product attributes (e.g., freshness), functional (feeling healthy) and psychological consequences (feeling guilt-free), as well as terminal (achievement) and instrumental values (self-direction). The study discusses implications for marketing and policymaking.

The retailing world looks less and less like it did years ago. The development of Private Label (PL) in almost every consumer product category and the advent of Omni-channel retailing have changed dramatically the landscape. However the evolution of Private Label has tender to be mixed and the competition between National Brand (NB) and Private Label becomes stronger and stronger. The Omni-channel retailing is offering to the retailer the opportunity to push, within the product mix, PL products in difficulties, mainly when managing a physical outlet and an attached-Drive. Investigation and analysis of data between two channels of a distribution chain (Study 1) and a customer survey on mix-clients (Shop & Drive) (study 2) demonstrate inconsistencies of the Drive product-mix choices and the moderating role of the inventory shortage and out of date good policy. The results suggest to the retailer which products to be referenced or delisted.

Retailers often organize part of their assortment by displaying products from juxtaposition (vertically, horizontally or separately) and coordination (target, complementary) modes. Researchers have observed an interaction effect of coordination and juxtaposition on product evaluation. This article investigated how the inclusion of brand, national brand (NB) and private label (PL), in the juxtaposition and coordination analysis, as a three-way interaction, influences product evaluation. We use an in-store survey and a controlled experiment to test our framework. The results show that, in the dual interaction, a complement PL and a target NB presented vertically are favorably evaluated, while a horizontal display induces a poor evaluation. However, in the three-way interactions a horizontal display and a separate presentation lead to better product evaluations.

The current work focuses on consumer buying behavior concerning veg food branded with the private label. Studies on the factors driving consumers in buying veg private labels are uncommon and empirical studies on the topic are lacking. Specifically, we propose a model aimed at exploring the attitude-intention-behaviour path when veg private labels (VPL) are concerned and when a double kind of behavior is considered: behavioral loyalty (BLVPL) and willingness to pay (WTP).

The study was performed via a survey accomplished administering a structured questionnaire to a sample of consumers via social networks and then applying structural equation modeling (SEM) to the dataset. Findings confirm the investigated path in developing a positive willingness to pay (WTP) and buying behavior (BLVPL) regarding VPL, through the mediating role of attitude towards vegan food consumption (ATTV) and intention to buy the vegan private label (INTBVPL), activated by an ethical motive: planet concern. Theoretical and managerial implications are derived.

This research aims to analyze how retailers’ endorsement of socially responsible and sustainable practices impact consumers’ attitudes and perceptions towards retailers’ products (private labels). A laboratory experiment, in which CSR practices were manipulated (environmental initiatives vs philanthropic initiatives) revealed that in general, CSR practices have a positive impact on consumers’ perceptions towards the retailer. Results suggest that consumers’ willingness to pay extra for products is higher for environmental than philanthropic initiatives. However, when analyzing behavioral intentions to purchase the products sold by retailer, results reveal a marginally significant preference for philanthropic vs environmental initiatives. Further analysis, this time considering consumers’ green values, indicate that high green consumers seem to infer higher product quality when retailers engage in environmental initiatives, while average green consumers seem to anticipate higher shopping experience when presented with an initiative of philanthropic nature. Overall, findings reveal interesting insights, highlighting how different CSR initiatives may have different impact in terms of product quality, willingness to pay, purchase intentions and shopping experience perceptions. Moreover, results also highlight a number of different psychological mechanisms that emerge when consumers hold distinct green consumption values.

Over recent years, Free-From food products have shown a significant increase in consumption internationally. Retailers from the Modern Grocery Distribution (MGD) are taking advantage of this positive trend by extending their assortment in the area, thus benefitting remarkably in terms of sales and margins. The present work is focused on the Gluten-Free segment; through an analysis of Italian IRI sell-out data from 2014 to 2019, our results show a considerably positive sales increase, albeit slightly diminishing during the last two years. However, Store Brands (SBs) are only partially exploiting this opportunity since their contribution to the overall turnover of Gluten-Free products has been limited; this is mainly due to a lack in assortment depth.

Assortment, as a key component of marketing mix, constitutes a fundamental positioning tool for retailers. Assortment composition can influence both current and future product choices by helping shape consumer preferences. Consumers expect retailers to provide a suitable mix of products; the impact that a retailer’s assortment design has on their sales and profit margins is clear. Assortment planning, therefore, represents an opportunity for the academic world to contribute to improving retail practice, although a dominant solution to such planning has not yet emerged. Several criteria have been used in literature to classify retail stores. A relevant classification is the one that classifies retailers attending to the variety, or breadth and depth, of the assortment. In Spain, the most recognized retail store commercial formats are: traditional commerce, specialized commerce, category killer, convenience store, self-service, supermarket, hypermarket, department store, popular store and discount store.

Post-purchase out-of-stock (OOS) often happens in an online store context, where products appear to be available at the time a consumer makes an order and checks out, but then become OOS when the order is to be dispatched. To mitigate negative responses from consumers, online grocery retailers often provide consumers a substitution alternative to the OOS item. This paper investigates the effects of two substitution policies where we focus on different matching strategies of the substitution with the OOS item. In policy one, we measure the effect of matching on the dominant attribute (brand vs. flavour). In policy two, we test the effect of matching with a product from the consumers’ past purchase portfolio. We investigate these two substitution policies and their interaction in two categories that differ on the level of differentiation (i.e., the degree to which distinctions are objectively measurable – vertical differentiation/VD vs. not easy to evaluate – horizontal differentiation/HD). Our dependent variable is the probability to accept the substitute. The study employs a computer-simulated purchase experiment, using two product categories: margarine (VD) and cereals (HD). 2,113 UK consumers representative of general UK shopper profile participated. Findings show that in the margarine category where brand is the dominant attribute, the same brand substitution is more likely to be accepted than the same flavour substitution. In contrast, in the cereal category where flavour is more likely to be the dominant attribute, same flavour substitution is more likely to be accepted than same brand substitution. The results also show that, in both categories, matching the substitution product with a product from consumers’ past purchase portfolio is more likely to be accepted than offering a substitute that consumers have not bought before. We also found a significant interaction between the two policy types but for cereals only. The effects of two substitution policies are mediated by perceived fairness of the substitution. The paper discusses contributions and implication for future research.

Private labels, i.e. products that are produced and marketed by retailers themselves, are today an important vehicle for food retailers’ strategic positioning – both in terms of price and quality image. The question of how private labels can deliver and differentiate through these images is an important element in the overall retail offering. Consequently, the purpose of this study is to identify and explore how consumers’ perceptions of national private label brands differ in terms of price and quality images. To address this, we focus on two competing private labels and identify how consumers perceive their differences. As a result, we explore these differences along two dimensions, price image and quality image, and consequently, identify and discuss three varying consumer groups. Our illustrative analysis contributes to prior literature especially by enriching qualitative understanding of price and quality perceptions of private labels and extending analytical focus from manufacturer vs. private label toward comparing two private labels instead.

Around 20% of shoppers are now online shoppers in the Spanish Consumer Packaged Goods (CPGs) market. Pure online shoppers (those who “most frequently” conduct their shopping online) and those called “mixed” shoppers (those who “occasionally” do it) seem to differ in their preferences, choices and behaviors, when it comes to shopping for CPGs. From another perspective, shoppers who choose to buy in “pure players”, such as Amazon, and those who prefer to buy in “click-and-mortar” stores, such as Carrefour online, also seem to differ in their behaviors. In this new competitive context, both manufacturers and retailers must learn how to attract and retain customers; whether these come from their own physical stores, or from a competitive one.

Using an initial sample of 2,621 interviews, this paper explores the new online shopper types and behaviors from both abovementioned perspectives, while trying to find evidence of the differences in their choices between National Brands (NBs) and Retail Brands (PLs).

Lastly, we also explore the challenges to innovation caused by the barriers that the new online context may have created to newly created products and brands.