Advertisement

The Role of Previous Experience and Marketing Policy on Consumer Behaviour Towards Different Private Label Categories

  • Mbaye Fall-DialloEmail author
  • Joseph Kaswengi
  • Juan Carlos Gázquez-Abad
Conference paper
Part of the Springer Proceedings in Business and Economics book series (SPBE)

Abstract

This paper analyses the role of previous experience and marketing policy in explaining consumer behavior towards Private labels (PLs) in expansion and crisis. In order to do this, several multinomial logit (MNL) models using purchase records from scanner data in two categories (butter and yoghurt) are estimated. Our results highlight that previous experience is relevant in explaining purchasing behaviour for the local origin PL in expansion; however, during crisis period, previous experience seems to be relevant for both standard PL and local origin PL. Retailers, therefore, should no longer manage PLs as a homogeneous range of products. In addition, retailers are advised to carefully monitor the macro-economic situation, as the relationships between PL purchasing behavior and its antecedents strongly differ during expansion and crisis situations

Keywords

Private label Previous experience Marketing policy Crisis Expansion 

References

  1. Ailawadi, K. L., Pauwels, K., & Steenkamp, J. B. (2008). Private label use and store loyalty. Journal of Marketing, 72(3), 19–30.CrossRefGoogle Scholar
  2. Balachander, S., & Ghose, S. (2003). Reciprocal spillover effects: A strategic benefit of brand extensions. Journal of Marketing, 67(1), 4–23.CrossRefGoogle Scholar
  3. Diallo, M. F., Chandon, J. L., Cliquet, G., & Philippe, J. (2013). Factors influencing consumer behaviour towards store brands: Evidence from the French market. International Journal of Retail and Distribution Management, 41(6), 422–441.CrossRefGoogle Scholar
  4. Gijsbrechts, E., & Szymanowski, M. G. (2012). Consumption-based cross-brand learning: Are private labels really private? Journal of Marketing Research, 49(2), 231–246.CrossRefGoogle Scholar
  5. González-Benito, Ó., & Martos-Partal, M. (2012). Role of retailer positioning and product category on the relationship between store brand consumption and store loyalty. Journal of Retailing, 88(2), 236–249.CrossRefGoogle Scholar
  6. IRI. (2013). Private label: Balancing quality and value. Report Research IRI. Available at: http://www.iriworldwide.eu/Portals/0/articlepdfs/PrivateLabel_2013_Full%20Report.pdf. Accessed 30 Jan 2015.
  7. Kaswengi, J., & Diallo, M. (2015). Consumer choice of store brands across store formats: Panel data analysis under crisis periods. Journal of Retailing and Consumer Services, 23(3), 70–76.CrossRefGoogle Scholar
  8. Kaytaz, M., & Gul, M. C. (2014). Consumer response to economic crisis and lessons for marketers: The Turkish experience. Journal of Business Research, 67(1), 2701–2706.CrossRefGoogle Scholar
  9. Lamey, L., Deleersnyder, B., Dekimpe, M. G., & Steenkamp, J. B. E. M. (2012). The effect of business-cycle fluctuations on private-label share: What has marketing conduct got to do with it? Journal of Marketing, 76(1), 1–19.CrossRefGoogle Scholar
  10. Le Monde. (2013). Le prix, clé de succès pour les distributeurs. Available at: http://www.lemonde.fr/economie/article/2013/01/17/le-prix-cle-du-succes-pour-les-distributeurs_1818395_3234.html. Accessed 4 Mar 2015.
  11. Liljander, V., Polsa, P., & Van Riel, A. (2009). Modelling consumer responses to an apparel store brand: Store image as a risk reducer. Journal of Retailing and Consumer Services, 16(4), 281–290.CrossRefGoogle Scholar
  12. LSA. (2014). Classement LSA: Les 100 premières enseignes en France. Available at: http://www.lsa-conso.fr/classement-lsa-les-100-premieres-enseignes-en-france,182807. Accessed 4 Mar 2015.
  13. LSA. (2015). Carrefour affiche des résultats 2014 en forte hausse, belles perspectives pour 2015. Available at: http://www.lsa-conso.fr/carrefour-affiche-des-resultats-2014-en-forte-hausse-belles-perspectives-pour-2015,203272. Accessed 4 Mar 2015.
  14. Millet, K., Lamey, L., & Van den Bergh, B. (2012). Avoiding negative vs. achieving positive outcomes in hard and prosperous economic times. Organizational Behavior and Human Decision Processes, 117(2), 275–284.CrossRefGoogle Scholar
  15. National Retail Federation. (2015). 2015 top 250 global powers of retailing. Available at: https://nrf.com/news/2015-top-250-global-powers-of-retailing. Accessed 4 Mar 2015.
  16. Ngobo, P.-V. (2011). What drives household choice of organic products in grocery stores? Journal of Retailing, 87(1), 90–100.CrossRefGoogle Scholar
  17. Nielsen. (2011). The rise of the value-conscious shopper: A Nielsen global private label report. Research report. Available at: http://hk.nielsen.com/documents/PrivateLabelGlobalReport.pdf. Accessed 30 Jan 2015.
  18. Richardson, P. S., Jain, A. K., & Dick, A. (1996). Household store brand proneness: A framework. Journal of Retailing, 72(2), 159–185.CrossRefGoogle Scholar
  19. Sethuraman, P. (1995). A meta-analysis of national brand and store brand cross promotional price elasticities. Marketing Letters, 6(4), 275–286.CrossRefGoogle Scholar
  20. Sethuraman, R., & Gielens, K. (2014). Determinants of store brand share. Journal of Retailing, 90(2), 141–153.CrossRefGoogle Scholar
  21. 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.CrossRefGoogle Scholar
  22. Sivakumar, K., & Raj, S. (1997). Quality tier competition: How price change influences brand choice and category choice. Journal of Marketing, 61(July), 71–84.CrossRefGoogle Scholar
  23. Yoo, B., Donthu, N., & Lee, S. (2000). An examination of selected marketing mix elements and brand equity. Journal of the Academy of Marketing Science, 28(2), 195–211.CrossRefGoogle Scholar
  24. Zielke, S., & Dobbelstein, T. (2007). Customers’ willingness to purchase new store brands. Journal of Product & Brand Management, 16(2), 112–121.CrossRefGoogle Scholar

Copyright information

© Springer International Publishing Switzerland 2015

Authors and Affiliations

  • Mbaye Fall-Diallo
    • 1
    • 2
    Email author
  • Joseph Kaswengi
    • 3
  • Juan Carlos Gázquez-Abad
    • 4
  1. 1.Institute of Retail Marketing and ManagementUniversity of Lille 2LilleFrance
  2. 2.Université de Lille-Skema Business SchoolLilleFrance
  3. 3.University of OrléansOrléansFrance
  4. 4.School of Economics and Business, Agrifood Campus of International Excellence ceiA3University of AlmeríaAlmeríaSpain

Personalised recommendations