Private Label Research Articles

DETERMINANTS OF CUSTOMER LOYALTY TOWARDS WATSONS PRIVATE LABEL BRANDS: MODERATOR ROLE OF HEALTH CONSCIOUSNESS

Private label is rapidly placing great significance throughout the world nowadays with the brands are now being available in almost every product category. It refers to a range of products offered by a retailer under its own brand name and are usually cheaper than branded items. From the initial focus on low price strategy, private brands step into a quality and status positioning which using benefits from the retailers own private brand image. In the other words, private brands launched by retailers are not merely competing in terms of price, but also strived to access a significant market share traditionally owned by manufacturers. Even though private label brands are getting well-known and becoming more relevant to customers throughout the world, it is still not gaining the momentum in Asian market. The growth of private label brand was slow and considered as under developed in Asian region. In relation to the case of Watsons Malaysia, its market share of private label brands was lower than 1%, as compared with 45% in Switzerland and 8% in Singapore. This is despite having significantly huge loyalty card members in Malaysia. Thus, the general aim for this conceptual paper is to propose several factors that can be used to determine the relationship between those factors and customer loyalty of Watsons private label brands as well as the moderating effect of health consciousness in those relationships. Therefore, this paper has proposed several propositions with regards to the aim identified earlier; Proposition 1: Price influences the customer loyalty towards Watsons private label brands. Proposition 2: Perceived Quality influence the customer loyalty towards Watsons private label brands. Proposition 3: Perceived Value influence the customer loyalty towards Watsons private label brands. Proposition 4: Health consciousness moderates the relationship between price, perceived quality, perceived value and customer loyalty.

PENGARUH KUALITAS PRODUK, HARGA, DAN CITRA MEREK TERHADAP MINAT BELI KONSUMEN PRODUK PRIVATE LABEL PADA SUPER INDO SUPERMARKET CABANG KELAPA DUA

This study aims to determine the effect of Product Quality, Price, amd Brand Equity on customers’ Purchase Interest of private label product on super indo supermarket kelapa dua simultaneously or partially. The data used is primary data, collected through distributing questionnaires to 120 customers of Superindo Kelapa Dua’s customers buying private labels’ snacks. The method used in this study is a quantitive method and the results of the study are based on respondents’ answers using a Likert scale. Data analysis method used in this research are Multiple Linear Regression Test, F test, t Test, and Coefficient of Determine.Based on the result of this study Product Quality, Price, and Brand Image simultaneously have an effect on Purchase Interest, Product Quality has an effect on Purchase Interest, Price has no effect on Purchase Interest, and Brand Image has an effect on Purchase Interest.

Managerial Practices and (Post) Pandemic Consumption of Private Labels: Online and Offline Retail Perspective in a Portuguese Context

Currently, given the different dynamics of competition, food retailers are increasingly betting on private labels as a strategy of differentiation and retention of competitive advantages. To this extent, this study aims to assess the antecedents of the purchase intention of food retailers’ private labels, as well as to understand the managerial practices and (post) pandemic consumption retail perspective in a Portuguese context. The results obtained, through a quantitative analysis by means of multiple linear regressions, on a random sample of customers (n = 300) indicate that customer satisfaction and attitude towards his/her own brand are quite favourable, as demonstrated by the existence of a high loyalty to his/her own brand. Additionally, they reveal that the purchase experience, the private-label image, the perceived risk, and the COVID-19 pandemic are prior attitudes towards the private label and its mediation in the purchase intention and recommendation of its products. Finally, loyalty to the private label, store satisfaction and, through these, also the shopping experience were confirmed as determinants of loyalty. These results provide insights to food retailers on aspects to be improved and considered in the design of commercial strategies that promote the intention to purchase private-label products and that win and retain customers and achieve competitive advantages and profitability. Regarding the COVID-19 pandemic, the study reveals that some consumers changed their purchasing patterns, choosing to buy more private-label products at this stage.

How Korean Retailers Expand Private Label Markets Abroad: Evidence from the Chinese Fresh Food Market

Purpose - The increasing share of Korean private label products (PLPs) in the domestic market helped generate lucrative revenue. In recent years, major South Korean retailers have begun to cast their sights on overseas markets and actively export their PLPs. In China, the proportion of private label fresh food (PLFF) is gradually expanding amid the development of the new retailing model. A profound understanding of the relationship between private label fresh produce and purchase intention may be the answer to helping Chinese retailer private labels expand supply chains in Korea. This study, taking Chinese retailers as an example, examines the impacts of selection factors of private label fresh food and perceived value on purchase intention. Apart from that, the relationship between the selection factors and purchase intention will be analyzed with perceived value as a mediator.
 Design/methodology - This work aims to empirically analyze the purchase intention of private label fresh food using statistical analysis. In this study, a hypothetical causal model consisting of 6 latent variables and 24 measured variables is developed based on the literature review. To validate the research hypotheses and the research model, SPSS23.0/AMOS23.0 is used to analyze factors such as validity and reliability, as well as structural equation modeling.
 Findings - The hypothetical model established in this study is of general applicability. In respect to PLFF, perceived value, while significantly influencing purchase intention in combination with four selection factors (perceived quality, perceived price, brand trust, and store image), mediates partially between the first three factors and purchase intention, which rules out the impact and mediating effect of store image on purchase intention.
 Originality/value - These research results, as helpful insights into the present circumstances of Chinese PLFF in the domestic market, provide useful information and guidance for Korean retailers and service providers to innovate production and service, as well as develop marketing and promotion strategies, so that they can shift private label goods with advantages from domestic demand to export, thus increasing overseas profitability. Further, this work will also contribute to relevant research.

How Market Orientation Impacts Customer’s Brand Loyalty and Buying Decisions

As retail management has become increasingly demanding, it is imperative that retailers use market orientation to promote and increase loyalty to their private labels. This can be important in efforts to differentiate themselves from their competition. The focus of this study is to understand how these factors impact the loyalty of customer purchase decisions, through the link between the potential for brand risk and brand commitment, in order to facilitate customer orientation and brand loyalty. An online survey was conducted with a sample of 2900 consumers in Portugal and Spain. This study analyzed two distinct and high involvement product categories: Denomination of Origin (DOC) wine and anti-wrinkle cream. Structural equation modeling methodology was used to analyze the relationship between different constructs. It was found that there is no direct correlation between customer orientation and brand loyalty. However, this connection is critical when the two mediating variables of brand risk and brand commitment are accounted for. Another important finding relates to the values and differences identified between the two product categories. The results obtained show the importance of risk and commitment for high involvement products. In practice, this justifies brands explicitly managing these factors, because they can translate into loyalty behaviors. The results also contribute to demystifying the market for more complex products, particularly when the choice and risk process is more complex.

The future of private-label markets: A global convergence approach

Private-label (PL) shares are characterized by considerable heterogeneity across both countries and categories, not only in their current level, but also in the rate at which they are growing. This creates ambiguity about their remaining growth potential. To offer insights into the likely long-run PL shares, we take a forward-looking perspective by means of a convergence model. We apply the model to two unique datasets that together span more than 50 countries, both emerging and developed, across more than70 CPG categories. We find evidence of partial PL convergence: even though PL shares will become more similar, part of the currently observed heterogeneity will persist. The future evolution in two key marketing instruments, new-product introductions by both NB manufacturers and retailers and the NB-PL price gap, is found to play a substantial role in shaping the global PL landscape of the future. This impact is not uniform, however, but depends on the category, and varies with the retail, economic and cultural context. In addition, the long-run impact of both marketing drivers differs from what is currently observed, suggesting that managers should not adhere too strongly to earlier practices when planning for the future.

The Role of Brand Image, Promotion, Price there is Trust, and Purchasing Decisions towards the Loyalty of Private Label Products of the traditional retail industry in Nunukan North Kalimantan

The purpose of this research is to examine, the effect of brand image, promotion, and price on trust, and purchasing decisions, the effect of trust on purchasing decisions, and customer loyalty, and the effect of purchasing decisions on loyalty. In this study, private-label brands in the retail industry in Yogyakarta are objects and the people of Yogyakarta are subjects with the minimum criteria for purchasing private labels three times. The sample is 272 respondents. The analytical tool used is SEM (Structural Equation Modeling) which is operated through the AMOS program. Sampling was carried out using a multistage random sampling technique. Furthermore, data collection is carried out by distributing questionnaires through a google form. The SEM method used in this study is the estimation of maximum probability and is used as a one-step approach in modeling the SEM approach. Descriptive statistical analysis and Cronbach’s alpha were performed with SPSS 21. SEM analysis was performed using the AMOS program. These results indicate that there is a positive and significant influence between Brand Image, Promotion, and Price on Trust and Purchase decisions. Trust has a positive and significant effect on Purchase Decisions and Loyalty, Purchase Decisions have a positive and significant effect on customer loyalty.

The Role of Brand Image, Promotion, Price there is Trust, and Purchasing Decisions towards the Loyalty of Private Label Products of the traditional retail industry in Nunukan North Kalimantan

The purpose of this research is to examine, the effect of brand image, promotion, and price on trust, and purchasing decisions, the effect of trust on purchasing decisions, and customer loyalty, and the effect of purchasing decisions on loyalty. In this study, private-label brands in the retail industry in Yogyakarta are objects and the people of Yogyakarta are subjects with the minimum criteria for purchasing private labels three times. The sample is 272 respondents. The analytical tool used is SEM (Structural Equation Modeling) which is operated through the AMOS program. Sampling was carried out using a multistage random sampling technique. Furthermore, data collection is carried out by distributing questionnaires through a google form. The SEM method used in this study is the estimation of maximum probability and is used as a one-step approach in modeling the SEM approach. Descriptive statistical analysis and Cronbach’s alpha were performed with SPSS 21. SEM analysis was performed using the AMOS program. These results indicate that there is a positive and significant influence between Brand Image, Promotion, and Price on Trust and Purchase decisions. Trust has a positive and significant effect on Purchase Decisions and Loyalty, Purchase Decisions have a positive and significant effect on customer loyalty.

“Sorry, the product you ordered is out of stock”: Effects of substitution policy in online grocery retailing

Postpurchase out-of-stock (PP-OOS) often happens in an online grocery context, where products appear to be available at the time a consumer places an order, but become OOS when the order is to be dispatched. This paper investigates two substitution policies that can mitigate negative responses: substitutions can match (i) on the dominant attribute and (ii) with a product from the consumers’ past purchase portfolio. According to data collected through two computer-simulated purchase experiments, involving more than 3,000 households and five product categories, matching the substitution on the dominant attribute increases acceptance, but this dominant attribute varies across category differentiation level (flavor for horizontal differentiated categories like cereals or crips vs. brand for vertical differentiated categories like margarine or ketchup). Category differentiation also informs acceptance of national brand or private-label flavor substitutes, such that, same-flavor private label is prefered more in horizontal differentiated categories. Matching on the basis of previous purchases has positive effects for both category differentiation levels, and when combining both policies, the previous purchase matching effect grows stronger for same flavor, rather than same brand, matching. These detailed insights establish several key managerial implications for substitution policies in online grocery contexts.

Income inequality and consumer preference for private labels versus national brands

Income inequality and consumer preference for private labels versus national brands

The connection between manufacturer and private label brands and brand loyalty in chocolate bar buying decisions – A hybrid choice approach

With the increase in health awareness more and more attention is paid to how manufacturers can respond to ever-changing consumer needs. This is especially true for the market of popular consumer goods such as chocolate. In order to understand Hungarian consumers' preferences in chocolate bars, we used the stated choice experiment method in our research. The attributes of our experiment included brand (manufacturer and private label), type (milk, dark, and white), a health claim (sugar free), as well as price, and our model estimations were done using the multinomial logit specification. In order to increase the explained rate of utility perceived by respondents, we also estimated a hybrid model containing a latent variable (representing consumers’ brand loyalty). Our results reveal that the respondents showed a clear preference for manufacturer brands compared to private label brands. Regarding the type of chocolate, we found that milk chocolate received the most positive evaluation, which was followed by dark and white chocolate, respectively; we also demonstrated that sugar free products have a negative rating. In line with our preliminary expectations, a rise in the price of the product has a negative impact on utility as perceived by consumers. Brand loyalty is most characteristic of young and highly educated respondents, and a rise in brand loyalty lead to an increase in the preference towards manufacturer brand products compared to private label brand products.

Private Labels Strategy, Retail Profitability and Bargaining Power in the Fluid Milk Market

Abstract This paper studies the competition between private labels and the role of private labels in determining the bargaining outcomes between retailers and manufacturers as well as retailer profitability in the fluid milk market. We differentiate private labels from different retailers and develop a structural model of demand and a Nash-in-Nash vertical bargaining model of supply. Using 2004–2011 Nielsen Homescan data at monthly-county level, we estimated the average bargaining power of retailers and how various factors influence their bargaining power with a random-coefficient discrete choice model of demand. With the full bargaining model specification, this paper then conducts simulations to isolate the role of private label in bargaining and retailer profitability, comparing the effectiveness of alternative private label strategies. Results indicate private label milk from different retailers are close competitors and retailers have more bargaining power than manufacturers. Further, factors such as the manufacturer size, private label share, and their private label position can significantly affect retailers’ bargaining power. Moreover, the counterfactual analysis shows that lowering private label prices and other private label strategies such as private label program expansion and retailer advertising could not only increase their profitability but also allow retailers to benefit from the bargaining with manufacturers.

Nudging Sustainable Consumption: A Large-Scale Data Analysis of Sustainability Labels for Fashion in German Online Retail

A transition toward a sustainable way of living is more pressing than ever. One link to achieving this transition is to increase the currently low level of sustainable consumption, and sustainability labeling has been shown to directly influence sustainable purchasing decisions. E-commerce retailers have recently picked up on a means to inform online shoppers about sustainable alternatives by introducing on their websites third-party and private sustainability labels as nudging instruments. However, despite its increasing relevance in practice, research lacks evidence about the availability and credibility of sustainability labeling in online retail. Our study is guided by the question of how online retailers use sustainability labels to communicate information on the sustainability of products to consumers. Our empirical research is based on a large-scale dataset containing sustainability information of nearly 17,000 fashion products of the leading online retailers in Germany Zalando and Otto. The results show that a large number of fashion products are tagged as sustainable, with two-thirds carrying a private label and one-third a third-party verified label. Only 14% of the tagged products, however, present credible third-party verified sustainability labels. This low percentage makes it challenging for consumers to comprehend to what degree a product is sustainable. The wide distribution of private labels indicates that most of the available sustainability information in the selected online shops addresses only single sustainability issues, preventing comparability. Furthermore, label heterogeneity can add to the confusion and uncertainty among consumers. Our practical recommendations support political initiatives that tackle the risk of greenwashing resulting from uncertified and weak sustainability information.

PRIVATE LABEL: QUALITY AND LOYALTY

The purpose of this research is about the loyalty of private label products, which is growing very rapidly, resulting in a decline in the market share of branded manufactured products. Private label products are products that are sold in retail stores, where these stores sell daily necessities at lower prices. Consumers who buy this product are price sensitive consumers. Although product quality is similar to manufactured products, consumers who are used to branded products have a perception of risk when buying private label products. This research was conducted at a retail store that sells products with the same brand as the name of the retail store. The research location was in Semarang and Gringsing with a sample of 120 respondents. Determination of the number of samples using purposive sampling technique, data analysis using multiple regression. The finding is that repurchase intention is an intervening variable between store image, risk perception, price perception and loyalty.

Private label food products: Consumer perception and distribution strategies

Food Products Private Label PL, are foods produced by the food industries on order of food distribution companies. Their characteristic is that they are similar to industrial brands but are marketed under the name of the distribution company. Over time they have spread to countries with high per capita income, so much so that today they have become an established product in the food market. Today the PL makes it possible to overcome the criticalities that small agricultural businesses have, which cannot relate to the large-scale retail trade. The PL allow the survival of the company and the permanence of the man in the rural environment. The aim of this research was to analyze the benefits of PL foods for the distribution company. To this end, we carried out a market research by analyzing a sample of families or cohabitation. The information requested was aimed at exploring the consumer's approach to PLs. The results of the research show that PLs, for various reasons including price and food safety, are now an established food product in the food market, so much so that they constitute a competitor for industrial brand products. They allow many agricultural enterprises in marginal areas to reach the market and be competitive. This allows a man to stay in the territory with positive effects on the environment.

Private Label Fashion Brands: Through the Lens of Masstige Marketing Theory

The purpose of this study was to investigate the influence of private label brands (PLBs) developed and managed by fashion retailers on the loyalty of customers towards the fashion retailers. We further intended to study the significance of PLBs in terms of enhancing profitability, perceived fashion value, and loyal customer base of fashion retailers through the lens of ‘Masstige Marketing.’ This novel approach of the application of masstige marketing for designing PLB plans gives a novel strategic consideration to fashion retailers in terms of curating strategically developed PLBs for their target audience. This study dwelt upon how strategically developed PLBs – by blending the mass appeal with prestige value and image – affected loyalty behavior, perceived fashion value, and profitability. Although this qualitative research was conducted from the perspective of the Indian retail sector, the findings applied to international markets as well since the strategic considerations towards PLBs are similar in both contexts. The findings showed that the smart PLBs – built by applying masstige marketing strategies – positively impacted customers’ loyalty and brand advocacy behavior. These PLBs will also help fashion retailers to enhance their perceived fashion value and have a profound impact on profitability.

Private label sourcing for an e-tailer with agency selling and service provision

Many electronic retailers (e-tailers) have introduced private labels (PLs). Although there is a vast literature on modeling pricing and e-tailers’ operational issues, research on PL sourcing has been lacking. This paper seeks to fill this gap by investigating an e-tailer (she) who can manufacture her PL in-house or source it from an external third-party manufacturer or a national brand manufacturer (he). The e-tailer simultaneously sells the PL directly and the product of the national brand (NB) manufacturer with agency selling. Furthermore, she provides consumer service for both products. Our analysis leads to the following major results. First, the e-tailer would charge the highest agency fee and provide the highest service level when sourcing from the NB manufacturer. Second, the PL sourcing preference of the e-tailer mainly depends on the production cost and consumer service sensitivity. In contrast, the profit of the NB manufacturer is influenced primarily by the consumer preference for PL and the sourcing strategy of the e-tailer. Third, there is always a PL sourcing strategy that can benefit the NB manufacturer and the e-tailer. Our model extensions explore how price elasticity, product quality, consumer loyalty, and exogenous fees affect our main results, which are shown to be robust.

Business models, consumer data and privacy in platform markets

We examine the drivers of the accuracy of the consumer information collected by a digital platform. In an environment where consumers mind their privacy, we compare a pure-intermediation model, where the platform plays a matching function only, by connecting buyers and sellers, with a hybrid business model, where the platform also introduces its private label to compete with third-party sellers. We show that the platform’s incentive to collect demand information in the two models depends on the intensity of intra-platform competition and on its bargaining power vis-à-vis third-party sellers. When end-users perceive the platform’s private label and the third-party sellers’ products as relatively close substitutes (strong intra-platform competition) and the intermediary has a strong bargaining position in the negotiation with the sellers, it tends to acquire less accurate information under the hybrid model than in the pure-intermediation model, at the benefit of consumer privacy. Otherwise, more information is acquired under the hybrid model. These results shed new light on the link between alternative business models, consumer privacy and information collection in the digital sector, and may help explaining why some platforms tend to protect more consumer privacy than others.

Private-label grocery buyers’ donation intentions and trust in CRM campaigns: an empirical analysis by employing social identity theory

PurposeBusinesses embark on corporate social responsibility initiatives such as cause-related marketing (CRM) as a strategy to enhance behavioural intentions. This study was undertaken due to the limited ability of the existing CRM literature to directly examine whether and how consumers’ trust affects the donation intention, specifically in the private-label grocery retailing context. This study employs social identity theory as a unified theory to explain the variables adopted and contributes to the body of knowledge on CRM-linked private-label consumption.Design/methodology/approachThis study used SPSS 25 and AMOS to analyse the quantitative data. The structural equation modelling was adopted to test moderation and mediation effect and the sample consisted of 456 private-label grocery shoppers.FindingsThe findings of this study established that general trust in CRM alone would not translate into triggering donation intentions for CRM private-label brands and further validates the mediating role of trust in retailers’ CRM campaigns (TRCC) in shaping monetary donation intentions. Moreover, religious values confirmed a significant moderating role while translating TRCC to donation intention.Research limitations/implicationsThe limitation of this study was the restricted focus on private labels. This research may be limited to only one private-label packaged product but may focus on other private-label products in future research.Practical implicationsThis study has practical significance for advertising managers in designing and implementing campaigns. More specifically, it establishes that consumers who trust the CRM phenomenon and seek private-label products associated with CRM campaigns are likely to provide monetary donations towards non-profit organization (NPOs).Originality/valueThis information will help practitioners, including grocery retailers, NPO managers and advertising professionals, design effective CRM campaigns for private-label products by understanding the fundamental relationship between trust in CRM campaigns and monetary donation intentions.

Vegetarian and Vegan Private Label Products as a Challenging Trend in Addressing the Customers Within Sustainable Food Consumption—A Case Study of Slovakia

The meat consumption at the current level is highly unsustainable. Because of the problems that meat production causes to the environment, it is considered as one of the main problems. Vegetarian and vegan private label products represent a new challenging trend in addressing the customers within sustainable food consumption at affordable prices. The submitted paper aimed to find out whether Slovak consumers know and subsequently buy products of the private brand targeted on vegans and vegetarians, in which product categories they do so, how they perceive them and what attracts and discourages them. The research was carried out in the period from September to December 2020, when a total of 2,011 respondents from all over Slovakia took part. As we have focused only on consumers who know the product line of private labels targeted on vegans and vegetarians (product line of vegan and vegetarian products), we have further analyzed and interpreted only the answers of 978 respondents. For the need to obtain the main aim of the research, we have formulated four theoretical assumptions and five hypotheses, whose veracity was verified with the use of selected statistical methods and techniques processed out at statistical programs XL Stat, SAS Enterprise Guide 7.1. and SAS 9.4. The key finding of our research is, that even if it could be assumed that the products of this specific private label will be bought only by respondents from the vegan or vegetarian category, the opposite is true—the private label is known and bought by the respondents from the category “I eat everything,” which means that it is necessary to think about this product line, to wider it and continue in the improvement of its quality as this is what the customers want.