Skip to main content

PLB Negative Publicity: Moderated by Extrinsic Cues

  • Conference paper
  • First Online:
  • 1094 Accesses

Part of the book series: Springer Proceedings in Business and Economics ((SPBE))

Abstract

Negative publicity (NP) of a Private Label Brand (PLB) may deteriorate consumers’ buying intention and perceived quality towards the PLB, along with the retailer store’s image. The rising involvement of consumers in the socials networks increases the damage of NP. The research purpose is to examine the influence of relying on extrinsic cues as a moderating factor and value for money (VFM) as a mediating factor on the NP’s final outcome. Survey participants (425) were randomly assigned to treatment and control groups to test the NP, and the moderation and mediation effects. The study employs factor analysis methods and paths analyses, Findings imply a direct negative effect of NP on PLB quality and PLB VFM, while PLB VFM mediates the relationship between PLB buying intention and store image. A moderation effect of extrinsic cues was found between PLB VFM and store chain image. The study contributes to the existing theory by the highlighting the role of extrinsic cues on the NP’s negative impact. Implication for retailers is, that extrinsic cues like price and publicity should be managed using a comprehensive view, especially in the arena of the social networks as a buffer against NP.

This is a preview of subscription content, log in via an institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

References

  • Ahluwalia, R., Burnkrant, R. E., & Unnava, H. R. (2000). Consumer response to negative publicity: The moderating role of commitment. Journal of Marketing Research, 37(2), 203–214.

    Article  Google Scholar 

  • Akdeniz, B., Calantone, R. J., & Voorhees, C. M. (2013). Effectiveness of marketing cues on consumer perceptions of quality: The moderating roles of brand reputation and third-party information. Psychology and Marketing, 30(1), 76–89.

    Article  Google Scholar 

  • Anselmsson, J., Vestman Bondesson, N., & Johansson, U. (2014). Brand image and customers’ willingness to pay a price premium for food brands. Journal of Product and Brand Management, 23(2), 90–102.

    Article  Google Scholar 

  • Asael, H. (1995). Consumer behavior and marketing action (5th ed.). Cincinnati, OH: South-Western College Publishing.

    Google Scholar 

  • Aula, P. (2010). Social media, reputation risk and ambient publicity management. Strategy and Leadership, 38(6), 43–49.

    Article  Google Scholar 

  • Blair, M. E., & Innis, D. E. (1996). The effects of product knowledge on the evaluation of warranteed brands. Psychology and Marketing, 13(5), 445–456.

    Article  Google Scholar 

  • Burnkrant, R. E. (1978). Cue utilization in product perception. NA-Advances in Consumer Research, 05, 724–730.

    Google Scholar 

  • Collins-Dodd, C., & Lindley, T. (2003). Store brands and retail differentiation: The influence of store image and store brand attitude on store own brand perceptions. Journal of Retailing and Consumer Services, 10(6), 345–352.

    Article  Google Scholar 

  • Dawar, N., & Pillutla, M. M. (2000). Impact of product-harm crises on brand equity: The moderating role of consumer expectations. Journal of Marketing Research, 37(2), 215–226.

    Article  Google Scholar 

  • DelVecchio, D. (2001). Consumer perceptions of private label quality: The role of product category characteristics and consumer use of heuristics. Journal of Retailing and Consumer Services, 8(5), 239–249.

    Article  Google Scholar 

  • Dodds, W. B., Monroe, K. B., & Grewal, D. (1991). Effects of price, brand, and store information on buyers’ product evaluations. Journal of Marketing Research, 28(3), 307–319.

    Article  Google Scholar 

  • Eisend, M., & Küster, F. (2011). The effectiveness of publicity versus advertising: A meta-analytic investigation of its moderators. Journal of the Academy of Marketing Science, 39(6), 906–921.

    Article  Google Scholar 

  • Fandos, C., & Flavián, C. (2006). Intrinsic and extrinsic quality attributes, loyalty and buying intention: An analysis for a PDO product. British Food Journal, 108(8), 646–662.

    Article  Google Scholar 

  • FDA, U. S. Food and Drug Administration. (2015, May 15). Retrieved from https://www.fda.gov/Safety/Recalls/ucm447111.htm

  • 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.

    Article  Google Scholar 

  • Gendel-Guterman, H., & Levy, S. (2015). Does PLB name really matter for retailers? A case of negative publicity. In F. J. Martinez-Lopez et al. (Eds.), Advances in national brand and private label marketing (pp. 85–94). Cham: Springer International Publishing.

    Google Scholar 

  • Gendel-Guterman, H., & Levy, S. (2017). Consumer response to private label brands’ negative publicity: A relational effect on retailer’s store image. Journal of Product and Brand Management, 6(2), 204–222.

    Google Scholar 

  • Hansen, H., & Onozaka, Y. (2011). When diseases hit aquaculture: An experimental study of spillover effects from negative publicity. Marine Resource Economics, 26(4), 281–291.

    Article  Google Scholar 

  • Jeon, J. O., & Baeck, S. (2016). What drives consumer’s responses to brand crisis? The moderating roles of brand associations and brand-customer relationship strength. Journal of Product and Brand Management, 25(6), 550–567.

    Article  Google Scholar 

  • Kirmani, A., & Wright, P. (1989). Money talks: Perceived advertising expense and expected product quality. Journal of Consumer Research, 16(3), 344–353.

    Article  Google Scholar 

  • Koschate-Fischer, N., Cramer, J., & Hoyer, W. D. (2014). Moderating effects of the relationship between private label share and store loyalty. Journal of Marketing, 78(2), 69–82.

    Article  Google Scholar 

  • Kumar, N., & Steenkamp, J. B. E. (2007). Brand versus brand. International Commerce Review, 7(1), 46–53.

    Article  Google Scholar 

  • Levy, S., & Gendel-Guterman, H. (2012). Does advertising matter to store brand purchase intention? A conceptual framework. Journal of Product and Brand Management, 21(2), 89–97.

    Article  Google Scholar 

  • Mackalski, R., & Belisle, J. F. (2015). Measuring the short-term spillover impact of a product recall on a brand ecosystem. Journal of Brand Management, 22(4), 323–339.

    Article  Google Scholar 

  • Olson, J. C., & Jacoby, J. (1972). Cue utilization in the quality perception process. In SV-proceedings of the third annual conference of the association for consumer research.

    Google Scholar 

  • Pullig, C., Netemeyer, R. G., & Biswas, A. (2006). Attitude basis, certainty, and challenge alignment: A case of negative brand publicity. Journal of the Academy of Marketing Science, 34(4), 528–542.

    Article  Google Scholar 

  • Richardson, P. S., Jain, A. K., & Dick, A. (1996). Household store brand proneness: A framework. Journal of Retailing, 72(2), 159–185.

    Article  Google Scholar 

  • Sethuraman, R. (2006). Private-label marketing strategies in packaged goods: Management beliefs and research insights. Cambridge, MA: Marketing Science Institute.

    Google Scholar 

  • Sethuraman, R., & Gielens, K. (2014). Determinants of store brand share. Journal of Retailing, 90(2), 141–153.

    Article  Google Scholar 

  • Steenkamp, J. B. E., & Dekimpe, M. G. (1997). The increasing power of store brands: Building loyalty and market share. Long Range Planning, 30(6), 917–930.

    Article  Google Scholar 

  • Vahie, A., & Paswan, A. (2006). Private label brand image: Its relationship with store image and national brand. International Journal of Retail and Distribution Management, 34(1), 67–84.

    Article  Google Scholar 

  • Wason, K. D., Polonsky, M. J., & Hyman, M. R. (2002). Designing vignette studies in marketing. Australasian Marketing Journal, 10(3), 41–58.

    Article  Google Scholar 

  • Zeithaml, V. A. (1988). Consumer perceptions of price, quality, and value: A means-end model and synthesis of evidence. The Journal of Marketing, 52(3), 2–22.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Hanna Gendel-Guterman .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2017 Springer International Publishing AG

About this paper

Cite this paper

Gendel-Guterman, H., Levy, S. (2017). PLB Negative Publicity: Moderated by Extrinsic Cues. In: Martínez-López, F., Gázquez-Abad, J., Ailawadi, K., Yagüe-Guillén, M. (eds) Advances in National Brand and Private Label Marketing. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-59701-0_12

Download citation

Publish with us

Policies and ethics