Abstract
A recent trend characterizing the retail industry is the rapid growth of store brands; many retailers now manage a store brand portfolio that incorporates multiple value propositions, such as a generic, a standard, and a premium brand. Yet current literature has not investigated whether the motivations and benefits sought differ among consumers of national brands and those of different types of store brand. This study analyses the shopping expenditures and motivational characteristics of customers of two major chains in the Spanish retail industry. The positioning of store brands moderates the benefits sought by store brand shoppers, such that each brand attracts different customer segments. Moreover, the overlap between these segments tends to be lower than their overlap with segments of national brand buyers. Therefore, any reference to store brands as a whole appears overly simplistic; an adequately selected portfolio of store brands instead may help retailers steal purchases from national brands, without cannibalizing their own brands' sales.
Similar content being viewed by others
References
ACNielsen (2011). “The rise of the value-conscious shopper” http://au.nielsen.com/site/documents/PrivateLabelGlobalReportMar2011.pdf (accessed 30 May 2011).
Ailawadi, K. L., & Keller, K. L. (2004). Understanding retail branding: Conceptual insights and research priorities. Journal of Retailing, 80, 331–342.
Ailawadi, K. L., Neslin, S. A., & Gedenk, K. (2001). Pursuing the value-conscious consumer: Store brands versus national brand promotions. Journal of Marketing, 65, 71–89.
Ailawadi, K. L., Pauwels, K., & Steenkamp, J.-B. E. M. (2008). Private label use and store loyalty. Journal of Marketing, 72(6), 19–30.
Baltas, G., & Argouslidis, P. C. (2007). Consumer characteristics and demand for store brands. International Journal of Retail & Distribution Management, 35(5), 328–341.
Bellizi, J. A., Kruckeberg, H. F., Hamilton, J. R., & Martin, W. S. (1981). Consumer perceptions of national, private, and generic brands. Journal of Retailing, 57(Winter), 56–70.
Burt, S. (2000). The strategic role of retail brands in British grocery retailing. European Journal of Marketing, 34(8), 875–890.
Burton, S., Lichtenstein, D. R., Netemeyer, R. G., & Garretson, J. A. (1998). A scale for measuring attitude toward private label products and an examination of its psychological and behavioral correlates. Journal of the Academy of Marketing Science, 26(4), 293–306.
Corstjens, M., & Lal, R. (2000). Building store loyalty through store brands. Journal of Marketing Research, 37(3), 281–291.
Coughlan, A. T., & Soberhan, D. A. (2005). Strategic segmentation using outlet malls. International of Research in Marketing, 22, 61–86.
Cunningham, I. C. M., Hardy, A. P., & Imperia, G. (1982). Generic brands versus national brands and store brands: A comparison of consumers' preferences and perceptions. Journal of Advertising Research, 22(7–8), 25–32.
Dunne, D., & Narasimhan, C. (1999). The new appeal of private label. Harvard Business Review, 77, 41–52.
Garretson, J. A., Fisher, D., & Burton, S. (2002). Antecedents of private label attitude and national brand promotion attitude: Similarities and differences. Journal of Retailing, 78(2), 91–99.
Geyskens, I., Gielens, K., & Gijsbrechts, E. (2010). Proliferating private-label portfolios: How introducing economy and premium private labels influences brand choice. Journal of Marketing Research, 47(5), 791–807.
Gielens, K. (2012). New products: The antidote to private label growth? Journal of Marketing Research, 49(3), 408–423.
Haley, R. I. (1968). Benefit segmentation: A decision-oriented research tool. Journal of Marketing, 32(3), 30–35.
Maarten, L. B. (2008). "FMLOGIT: Stata module fitting a fractional multinomial logit model by quasi maximum likelihood," Statistical Software ComponentsS456976, Boston College Department of Economics.
Martos-Partal, M., & Gonzalez-Benito, O. (2011). Store brand and store loyalty: The moderating role of store brand positioning. Marketing Letters, 22(3), 297–313.
Nies, S., & Natter, M. (2012). Does private label quality influence consumers' decision on where to shop? Psychology and Marketing, 29(49), 279–292.
Palmeira, M. M., & Thomas, D. (2011). Two-tier store brands: The benefic impact of a value brand on perceptions of premium brand. Journal of Retailing, 87(4), 540–548.
Park, J. E., Jun, Y., & Zhou, J. X. (2010). Consumer innovativeness and shopping styles. Journal of Consumer Marketing, 27(5), 437–446.
Richardson, P., Dick, A. S., & Jain, A. K. (1994). Extrinsic and intrinsic cue effects on perceptions of store brand quality. Journal of Marketing, 58(4), 28–36.
Sethuraman, R. (2006). “Private label marketing strategies in packaged goods: management beliefs and research insights”, Marketing Science Institute Working Paper, No. 06–108 (June)
Sethuraman, R., & Raju, J. S. (2011). Private label strategies: Myths and realities. In V. Shankar & G. S. Carpenter (Eds.), Handbook of Marketing Strategy. Northampton: Edward Elgar Publishing.
Sinapuelas, I. C., & Robinson, W. T. (2009). Entry for supermarket feature me-too brands: An empirical explanation of incidence and timing. Marketing Letters, 20(2), 183–196.
Sinha, I., & Batra, R. (1999). The effect of consumer price consciousness on private label purchase. International Journal of Research in Marketing, 16(3), 237–251.
Soberman, D. A., & Parker, P. M. (2006). The economics of quality-equivalent store brands. International Journal of Research in Marketing, 23, 125–139.
Steenkamp, J.-B. E. M., & Kumar, N. (2007). Private label strategy: How to meet the store brand challenge. Boston: Harvard Business School Press.
Steenkamp, J.-B. E. M., van Heerde, H. J., & Geykens, I. (2010). What makes consumers willing to pay a price premium for national brands over private labels? Journal of Marketing Research, 47(6), 1011–1024.
Szymanowski, M., & Gijsbrechts, E. (2012). Consumption-based cross-brand learning: Are private labels really private? Journal of Marketing Research, 49(2), 231–246.
Völckner, F., & Hofmann, J. (2007). The price-perceived quality relationship: A meta-analytic review and assessment of its determinants. Marketing Letters, 18(3), 181–196.
Williams, T. G., Slama, M., & Rogers, J. (1985). Behavioral characteristics of the recreational shoppers and implications for retail management. Journal of the Academy of Marketing Science, 13(3), 307–316.
Xie, Y. H. (2008). Consumer innovativeness and consumer acceptance of brand extensions. Journal of Product and Brand Management, 14(4), 235–243.
Yoon, S. O., Suk, K., Lee, S. M., & Park, E. Y. (2011). To seek variety or uniformity: The role of culture in consumers' choice in a group setting. Marketing Letters, 22(1), 49–64.
Acknowledgments
We thank the editors and reviewers for their insightful comments and suggestions on previous versions of this article. We also thank Kantar WorldPanel Spain for providing the study data. This research was supported by Ministerio de Educación y Ciencia, Grant ECO2011-23381 (Spain).
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Martos-Partal, M., González-Benito, O. & Fustinoni-Venturini, M. Motivational profiling of store brand shoppers: Differences across quality tiers. Mark Lett 26, 187–200 (2015). https://doi.org/10.1007/s11002-013-9274-x
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11002-013-9274-x