Elsevier

Long Range Planning

Volume 30, Issue 6, December 1997, Pages 917-930
Long Range Planning

The increasing power of store brands: Building loyalty and market share

https://doi.org/10.1016/S0024-6301(97)00077-0Get rights and content

Abstract

An important evolution in the retailing industry is the growing success of store brands. Still, their level of penetration varies widely across countries and industries. We provide an operational measure to quantify the power of store brands along two dimensions: the intrinsic loyalty of their customer base, and their conquesting power to attract potential switchers. Based on their position along these two dimensions, we classify store and national brands as ‘Giants’, ‘Misers’, ‘Fighters’ or ‘Artisans’. We use the proposed operationalization to evaluate the absolute and relative strength of Albert Heijn, the leading Dutch store brand, in 19 product categories.

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    Citation Excerpt :

    For example, aggregate switching matrices or brand choice shares are the starting points for several behavioral brand loyalty operationalizations (Mellens, Dekimpe, and Steenkamp 1996). Markov matrices (e.g., Massy, Montgomery, and Morrison 1970) or Colombo and Morrison's (1989) model, which additionally accounts for consumer heterogeneity, enable the comparison of repurchasing rates across competitors and provide insights into the development of brand loyalty over time, but they do not investigate contextual determinants of repurchasing (e.g., Dawes et al. 2015; Johnson 1984; Steenkamp and Dekimpe 1997). Discrete choice modeling (Luce 1959; McFadden 1973; Thurstone 1959) is another impactful literature-stream that often investigates-, or at least accounts for, behavioral loyalty in the form of repurchasing.

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