Consumer characteristics and demand for store brands

Abstract

PurposeStore brands represent an important part of the consumer goods market and a prominent research area. The purpose of this paper is to address a well‐defined problem of store brand research and is concerned with individual characteristics that explain heterogeneous preferences for store brands. Understanding how preferences vary with consumer factors is a key element in developing successful marketing strategies.Design/methodology/approachA survey is designed and implemented to a large random sample of consumers, using computer‐assisted telephone interviewing.FindingsSpecific consumer characteristics are associated with interpersonal differences in store brand demand. Store brand preferences derive from a broader evaluation process, in which quality has the most significant role. The results also demonstrate the changing image of store brands, the endorsement of such products by consumers of higher socio‐economic status, and lead to important implications for both retailers and manufacturers of consumer products.Originality/valueThe paper introduces random sampling and telephone interviewing to store brand research and provides new insights for managers and researchers.