The Strategic Positioning of Store Brands in Retailer - Manufacturer Bargaining

We argue in this paper that retailers can strategically position store brands in product space to strengthen their bargaining position when negotiating supply terms with manufacturers of national brands. Using a bargaining framework we model a retailer's decision whether to carry an additional national brand or a store brand, and if the retailer chooses to introduce the latter, where in product space to locate the store brand. Store brands differ from other brands in being both unadvertised and located at a position in product space that is determined by the retailer instead of by a manufacturer. To capture the negotiation effect of store brands empirically, our paper analyses a retailer's choice of whether or not to carry a store brand in a given category. We control for other motivations for carrying a store brand that have been used in the literature. We test our model on a cross-section of categories using supermarket data from multiple retailers. The first contribution of this paper is to show theoretically that the strategic positioning of a store brand in a category changes the bargaining over supply terms between a retailer and national brand manufacturers in that category. The empirical evidence is consistent with the theory. We find that retailers are more likely to carry a store brand in a category if the share of the leading national brand is higher, but that the leading national brand share does not affect the market share of the store brand. This indicates that there may be a bargaining motive for the introduction of the store brand. We propose that this is because the retailer can position the store brand to mimic the leading national brand and present data that shows that store brands frequently imitate national brand packaging on multiple dimensions.

STORE VS. NATIONAL BRANDS: A PRODUCT LINE MIX PUZZLE

This paper examines retailers' strategic decisions about store brand introduction when each retailer can stock a limited number of brands. The different product line mix equilibria depend on demand parameters that measure the cross-effect across national and store brands and the cross-effect within each brand type, thus leading to a simple testable implication. Store brand introduction is determined by the combination of the three effects that result from replacing a national brand by a store brand; the direct effect, the exclusivity effect and the in-store effect. Interestingly enough, we identify conditions under which similar retailers take different decisions concerning their product line mix.store brands, retail duopoly, product line mix

« Retail brand equity: a conceptual and differentiated approach »

This research focuses on retail branding in France. A qualitative study aims at identifying which are the specific dimensions of brand equity to be adapted to retail brands and which feedback effects of brand extension can occur on the image of retailer when a retail brand (which is the extended brand) dissatisfies consumers. Results show that there are two policies of retail brands: service retail brands (store brands and “composite” private labels) and private labels. This separation between the various categories of retail brands leads to consider two different models of brand equity. Whereas private labels seem to be only related to product dimensions, service retail brand equity is composed of three dimensions related to: 1) the product, 2) the services delivered in the store, and 3) the retail company, which displays this product under its own store brand. Finally, results of an exploratory research seem to underscore the superiority of the service brand strategies on private label policy.France, brand equity, private label, retail brand, service brand, store brand, feedback effects.

Building brands through experiential events: when entertainment meets education

Experiential marketing is increasingly getting companies’ attention as a strategy to interact with consumers and engage them to better convey their brand image and positioning. However, its effects are still unclear both at the aggregate and at the individual levels. This paper addresses this topic and presents a field experiment investigating the effects of experiential marketing on brand image in retailing. Two similar consumer electronics stores with different strategies – traditional vs. experiential – constitutes the setting in which a field experiment has been run. Two similar samples of consumers took part in our study by visiting one of these two stores, and answering a questionnaire before and after the visit with the primary goal to investigate the brand image and its changes due to the shopping visit. Brand image was measured as the overall brand attitude – via four items – and five specific desired brand claims that the company wanted to convey to consumers. Findings show that engaged consumers through the multisensory and interactive event arranged in the experiential store register higher levels of both brand attitude and all brand claims than those visiting the traditional store, and that the increase in both the dependent variables after the visit of the experiential store is higher than the increase in the traditional store. Thus, experiential stores are not only able to entertain consumers, but they are also able to educate them, by conveying them a set of brand claims more effectively than the traditional stor

Analisis Pengaruh Brand Equity Terhadap Keputusan Pembelian AC Panasonic Pada Toko Sumber AC Di Palembang

The purpose of this study was to analyze whether there is an influence of brand awareness, perceived quality, brand associations, and brand loyalty on purchase decisions in store Panasonic AC Sources AC in Palembang. The study was conducted by distributing questionnaires to the respondents who are the buyers AC (air conditioner) to store Sources Panasonic AC Palembang. The research sample using purposive sampling with 100 respondents. Processing data using statistical tools application program package for social source (SPSS) for windows version 16:00. From the score of the average distribution of brand equity and purchase decisions most respondents agreed. And from the results of multiple regression test (multiple regression) simultaneously brand equity (brand awareness, brand associations, perceived quality and brand loyalty) are very significant influence on purchasing decisions. Partially brand associations, perceived quality and loyalty influence on purchasing decisions. While brand awareness does not affect the purchase decision

Retail store design and environment as branding support in the services marketing

The services are intangibles, therefore their quality is difficult to be evaluated by the client and building a strong brand image is a challenging task. The services are distributed using diverse channels such as: company retail stores, dealers, franchise. The service companies are interested in the environment of the location, not only to increase sells but also in order to boost the image of the company. The excitement that a retail store induces to a client can modify the perception of the brand. The client values more a brand that distributes its services in a luxury, high-tech retail environment than a discount store. In this paper we intended to investigate the techniques that a service company is using to enhance the brand image in a retail location. For this purpose, the various aspects of the retail store design and environment were analyzed in connection with the customer-based brand equity model. This original association will offer the services companies’ new perspectives on how to leverage brand image.retail environment, brand architecture, point of sale marketing

Effects of Store Brand Perceived Risk on Buyers’ Behavior – Four Decades of Research Overview

Celem artykułu jest prezentacja pojęcia postrzeganego przez konsumentów ryzyka związanego z markami własnymi oraz przegląd najważniejszych badań nad tym konstruktem, prowadzonych na przestrzeni ostatnich 40 lat. Realizacja tak postawionego celu wymagała przeprowadzenia wyczerpujących studiów literatury na ten temat. Wyjaśniono szereg aspektów pojęcia postrzeganego ryzyka oraz przedstawiono główne efekty oddziaływania postrzeganego ryzyka związanego z markami własnymi na zachowania nabywców. Artykuł dostarcza menedżerom marki wiedzy na temat głównych kierunków ich działań odnoszących się do zarządzania asortymentem marek własnych. The majority of undertaken research on the influence of store brand perceived risk on the consumers’ behavior concerned mainly producer’s brands. Albeit, the research advances in the last four decades on store brand perceived risk, research and literature gaps still remain. This article aims to review what we know about examining and measuring perceived risk of store-branded products. The article is organized as follows. First, some aspects of the risk constructs are emphasized, such as how it is defined and used in consumer and marketing research. Second, major effects of store brand perceived risk are introduced and next, the conclusion and highlighted implications are indicated

Slotting Allowance: an Overlooked Angle in Grocery Retailing

Ever wonder why one product brand enjoys a more prominent shelf location in a particular retail establishment than another brand? Would such arrangement have any impact on the price one pays for a particular product? Answers to these are related to the relatively unexplored business phenomenon known as slotting allowances or fees for store shelf space. Read more about it...slotting allowance, retail market, distribution market, intermediate market, shelf space rental fee, product brand, store shelf space

Determinants of Beef and Pork Brand Equity

A set of consumer-level characteristic demand models were estimated to determine the level of brand equity for pork and beef meat cuts. Results indicate that brand premiums and discounts vary by private, national, and store brands; and brand equity varies across meat cuts carrying the same brand name. Other results are that product size discounts are linear, meat items on sale are significantly discounted to non-sale items, specialty stores typically do not garner higher prices than supermarket/grocery store, and warehouse/super center stores typically premium price to supermarket/ grocery store.Demand and Price Analysis,

THE DETERMINANTS OF COUPON DISCOUNTS FOR BREAKFAST CEREALS

This study identifies the determinants of coupon values at the brand level using a framework developed from price discrimination theory and the principles of demand. Couponing is considered within the context of a complex marketing program in which it is coordinated with other non-price promotional strategies. A simultaneous, two-equation, fixed-effects, panel-data model is specified and fitted with data on household purchases of ready-to-eat (RTE) breakfast cereals between 1992 and 1997. The empirical model accounts for the bi-directional causality between brand prices and discount levels and captures the retail effects of the major cereal maker's price cuts and discount reductions that occurred in 1996. Higher brand prices cause coupon values to rise, supporting the hypothesis that cereal makers price discriminate among consumers. Other non-price promotions, including advertising, store flyers, and in-store displays, appear to be coordinated with couponing. Specifically, coupon values fall with more intense advertising and in-store displays but rise when the couponed products are featured in store flyers. Discount levels are positively related to brand market share and the size of discounts that are redeemed for rival cereals. Moreover, coupon values fall with increasing brand loyalty among RTE cereal purchasers. Cereal prices are positively affected by coupon values, advertising expenditures, food-ingredient and packaging costs, and the prices of competing brands. Inventory levels are negatively correlated with brand price. Employee wages were not found to significantly influence cereal prices.Marketing,