Memory for Private Label Versus National Brand in Feature Advertising
Feature advertising is perceived to be the most cost-effective way to deliver information that would influence consumers’ store choice. Retailers increasingly use store flyers as a common form of feature advertising. Promotions featured in store flyers represent two sources, manufacturers and retailers, who pursue different objectives—support sales of National Brands (NBs) and increase store traffic and PL sales, respectively. Store flyers design implies a very difficult trade-off between promoting PLs or NBs.
The aim of this study was to examine whether featuring PLs vs. NBs on flyers is equally effective in terms of memory. We found that free recall and recognition—commonly used as proxies of memory—did not differ between PL and NBs. For retailers, this means that despite the different presence in terms of flyer space, featuring PL is as effective as NB in terms of flyer space allocation. We also explored the association between memory and customer characteristics, an area of investigation that has not specifically covered PL feature advertising before. Flyer proneness and loyalty to the retailer were discovered to be significant predictors of—respectively—NBs free recall and PL recognition. These findings support the relevance that customers characteristics play as far as memory for feature advertising is concerned. Retailers and manufacturers are therefore encouraged to segment the audience for flyers and target different segments with versions of the flyer that place different emphasis on NB or PL.
KeywordsPrivate label Feature advertising Retailing Store flyers National brands
- Blattberg, R., & Neslin, S. (1990). Sales promotion. Concepts, methods and strategies. Upper Saddle River, NJ: Prentice Hall.Google Scholar
- Bodapati, A., & Srinivasan, V. (2006). The impact of feature advertising on consumer store choice. Research Paper Series, 1935, Stanford Graduate School of Business.Google Scholar
- Henderson, C. (1984). Sales promotion segmentation: Refining the deal-proneness construct, Working Paper. Hanover, NH: The Amos Tuck School of Business Administration, Dartmouth College.Google Scholar
- Laroche, M., Cleveland, M., & Maravelakis, I. (2006). Competitive advertising interference and ad repetition effects: Comparing high share and low-share brands. International Journal of Advertising, 25(3), 271–307.Google Scholar
- Seenivasan, S., Sudhir, K., & Talukdar, D. (2012). Are loyal store brand users less store loyal? Yale School of Management Working papers (accessed 8 January 2015) (available at: http://faculty.som.yale.edu/ksudhir/workingpapers/StoreBrand-StoreLoyalty-Rev1.pdf).
- Volle, P. (1999). Promotion et choix du point de vente. Paris: Vuibert.Google Scholar
- Ziliani, C., & Ieva, M. (2015). Retail shopper marketing: The future of promotional flyers. International Journal of Retail & Distribution Management, 43, in press.Google Scholar