Citation
(2014), "Executive summary of “Beyond private label panache: the effect of store image and perceived price on brand prestige”", Journal of Consumer Marketing, Vol. 31 No. 4. https://doi.org/10.1108/JCM-05-2014-0990
Publisher
:Emerald Group Publishing Limited
Executive summary of “Beyond private label panache: the effect of store image and perceived price on brand prestige”
Article Type: Executive summary and implications for managers and executives From: Journal of Consumer Marketing, Volume 31, Issue 4
This summary has been provided to allow managers and executives a rapid appreciation of the content of the article. Those with a particular interest in the topic covered may then read the article in toto to take advantage of the more comprehensive description of the research undertaken and its results to get the full benefit of the material present.
As consumer demand for such PLBs has grown, research attention has increased accordingly in developed nations. However, such work within emerging markets is still at the embryonic stage.
Extant literature notes the idea of “Private Label Brand Prestige” and closely relates it to brand equity. Numerous academics have explored the brand equity concept, and it is widely regarded as an important intangible asset to any brand. Perceived as a “multidimensional construct”, the type and number of its derivative components remain subject to different interpretations. In the present work, Beneke and Zimmerman adopt brand loyalty, perceived quality and brand awareness/association as elements of PLB prestige.
Research considers brand loyalty as the core of brand equity, and it is defined as indicating consumer “attachment” to a particular brand. Any attraction toward competing brands diminishes as loyalty increases and thus strengthens brand prestige. Consumers use both intrinsic and exterior characteristics to evaluate brand quality. Correlation exists between brand prestige levels and quality perceptions, which are also influenced by personal and contextual factors. Scholars use awareness and association to describe the degree to which consumers recognize the brand. Information about a specific brand is stored in an individual’s memory and retrieved to help with purchase decision making. It is likewise argued that brand prestige increases as brand awareness and association gain in strength.
In the opinion of some experts, store image and perceived price serve as key antecedents of PLB prestige. Different definitions of store image are evident and consist of real and perceived attributes which consumers associate with a specific retail establishment. Consumers use such attributes to develop an affinity with the brand. Among the features most commonly incorporated into store image constructs are product quality, employee service, atmosphere, product variety, convenience and price/value. It has been noted that consumer attitude toward a retailer and its PLBs is influenced by these characteristics.
The importance of price in consumer purchase decisions is well documented. It reflects the “financial sacrifice” an individual must make to buy a particular product or service. Both “objective price” and “perceived price” are defined in the literature. The first of these refers to the actual price paid, while the latter relates more to consumer perception of the value obtained from the transaction. Perceived price is the result of individual assessment and can thus be subject to variation among different consumers, products, purchase contexts and time.
Another proposal is that store image and perceived price inter-relate with the PLB prestige attributes in the sense that:
Consumers base quality judgments on both intrinsic and extrinsic cues. Because evaluating intrinsic cues can be a complex task, people often use extrinsic cues to determine product quality. Different studies have found that consumers ascertaining the quality of PLBs will often use the name and image of the store.
Extrinsic cues provided by the retailer could increase consumer awareness of the store’s PLBs.
The image of a store attracts consumers who are likelier to develop loyalty toward retailer PLBs which are congruent with the store’s image.
Price helps indicate product quality and needs to be at a reasonable level in order that PLBs are perceived to be of sufficient standard.
In the main, the price of PLBs continues to be lower than their manufacturer brand counterparts. It is consequently argued that greater affordability of store brands could help prompt consumer loyalty to the retailer.
Shoppers tending toward value-consciousness might become more aware of PLBs they consider to reflect both quality and affordability.
The present study further examines how these issues impact on PLB consumers. A questionnaire was distributed to shoppers in two large suburban supermarkets in Cape Town, South Africa. The final sample of 205 consisted of middle to higher income subjects between 35 and 55 years old. Breakfast cereals were chosen as the product for the study because such items are bought frequently and are popular as a PLB variant. Respondents were asked for their answers to various questions designed to measure store image, perceived price, perceived quality, loyalty and awareness/association.
Data analysis revealed that:
store image has a positive and significant influence on PLB prestige;
PLB prestige is significantly influenced by perceived price;
store image positively affects perceived quality of PLBs;
quality perceptions of a PLB are influenced by its perceived price;
perceived price of PLBs impacts on consumer loyalty to such brands; and
awareness/association of a PLB is influenced by price perceptions.
Contrary to expectations, relationships between store image and both loyalty and awareness/association were not found to be significant. In the first case, the authors believe that store image alone may not be strong enough to inspire loyalty. Their view is that the effect might be more indirect and be mediated by the satisfaction that store image can generate. Lack of connection between store image and awareness/association is attributed to the growing portfolio of different PLBs and the dilution of brand identity that emerges as a result. Certain commentators have previously pointed out that incongruence between store image and PLB identity reduces scope to build and sustain loyalty to the retailer. The answer might be to focus on other aspects in addition to store image to increase customer satisfaction. These include effective management of operations and a proactive approach to use of different marketing channels. Such efforts could produce a “halo effect” that can increase PLB awareness and positively impact on loyalty. Marketers are warned that relying on store image alone to establish brand identity and loyalty will increase difficulty, as retailers add to their PLB portfolio and further diversify their offerings to reach different market segments.
The importance of price in this study provides support for earlier views that establishing a position of PLBs based on value for money is an ideal strategy within emerging markets. To this end, finding an optimum price level to ensure affordability is seen as imperative. However, Beneke and Zimmerman also point out the need to ensure that quality perceptions are not jeopardized by pricing the brand too low. They suggest that the introduction of loyalty programs would be a more effective strategy. Stores could provide special offers to regular customers such as trial offers and promotions where PLB prices are discounted.
In future, scholars could explore additional product categories, retail segments and different regions of South Africa. A comparison between emerging and developed markets is another research option to consider.
To read the full article enter 10.1108/JCM-12-2013-0801 into your search engine.
(A pre′cis of the article “Beyond private label panache: the effect of store image and perceived price on brand prestige”. Supplied by Marketing Consultants for Emerald.)