Store Brands in Consumer Durables - A Success Story

Abstract

Objectives: The paper aims to study the influences of price, store image, perceived quality, and brand association on customer satisfaction of electronic store brands. Is introducing store brand in electronic goods advantageous for the retailer? What makes the consumer to purchase a store brand? Methods/Statistical Analysis: The paper uses multivariate statistical techniques to understand the reasons behind the purchase of the store brands (both small and big appliances). This paper provides empirical insights about how the introduction of store brands is giving the retailer the competitive edge. Findings: The consumer prefers the store brand due to the store image, price, perceived quality and brand association of the retailer. Of these factors the most influential is the perceived quality. Examination of the preference of the consumer reveals that the retailer is able to retain his shoppers due to store brand. The prices have to be set carefully along with the increased perceived quality to retain them. Lately, many big retailers have added store brands in their assortment in all their product categories which is discussed in the media with their implications on the dominated channel management. Applications/Improvement: The main motivation for this research is the Neilson report on Global Private Label. This study provides a comprehensive evaluation of that trend especially with consumer durables.