Role of Retailer Positioning and Product Category on the Relationship Between Store Brand Consumption and Store Loyalty

Recent empirical evidence regarding the relationship between store brand purchase and store loyalty suggests a nonmonotonic relationship (inverted U): positive up to a certain store brand consumption level, after which it becomes negative. To investigate this idea further, this research analyzes the role of (1) the retailer's competitive positioning, and specifically its price positioning, and (2) the product category. On the one hand, the more price oriented the retailer's positioning, the more favorable is the relationship between store brand consumption and store loyalty. The threshold level of store brand purchasing at which the relationship becomes negative occurs later, and this negative relationship is less prominent. On the other hand, the relationship between store brand consumption and store loyalty appears to differ across product categories as a consequence of several factors, including perceived risk. The relationship therefore appears more favorable for risky categories. An empirical study of ten retailers that adopt different price positions corroborates these propositions.     

The effects of store brand loyalty on store loyalty: evidence from the Spanish market

This article studies the impact of retailers' store brands on store performance. Specifically, we analyze the extent to which store brands contribute to store loyalty. On the one hand, a positive relationship between customers' familiarity with and loyalty to the retailer's own brand and customers' loyalty to the retailer should result from the potential of the store brand to differentiate the retailer. On the other hand, an negative relationship between customers' familiarity with and loyalty to the retailer's own brand and customers' loyalty to the retailer may result from store brands' association with more price-sensitive customers, who have a higher propensity to buy at different stores that offer the best bargain. The empirical analysis, conducted with a sample of customers of leading retailers in the Spanish detergent market, shows no relationship between store brand loyalty and loyalty to the retailer. Although the purchase of store brands relates positively to higher loyalty to the retailer, this relationship deteriorates with the degree of exclusivity of store brands within the customer's shopping basket.     

Analyzing the effects of private-label supplier disclosure on retailer image

Private-label retailers' disclosures of dual manufacturing agreements—that is, agreements with manufacturers that produce both their own national brands and private labels—can affect the images associated with the retailers. In this study, an experiment reveals moderating effects on retailer images, according to the images of both the national brand manufacturers and the retailers; and also depending on the brand equity of the private label. A low-image retailer's disclosure that a national brand manufacturer supplies its private label causes consumers to perceive that the retailer has a higher image. However, the positive effects of private label supplier disclosure on the retailer's image are weaker when the private label enjoys high equity.     

Interplays between manufacturer advertising and retailer store brand introduction: Agency vs. wholesale contracts

In retail supply chains, manufacturers' advertising for national brands and retailers' store brand introduction may relate to each other, and two types of contracts, i.e., agency contract and wholesale contract, are widely used. This paper uses game-theoretic models to investigate the strategic interaction between a manufacturer's advertising strategy and a retailer's store brand introduction strategy. We derive the equilibrium outcomes, including wholesale price, retail price, market demand, retailer's and manufacturer's profits under different contract forms. We find that when the product cost is small relative to the perceived value of the store brand, the introduction of a store brand will benefit the retailer. The retailer is more likely to introduce store brands under the wholesale contract than under the agency contract. In addition, compared with the wholesale contract, the agency contract may increase both the manufacturer's and the retailer's profits and lead to Pareto improvement for them.     

The Retailer's Perspective on the Link Between Logistical Resources and Perceived Customer Loyalty to Manufacturer Brands

The objective of this study was to investigate the relationships between logistics and brand‐related resources, and assess their impact on the retailer's perceptions of customer loyalty to manufacturer brands. On the basis of theoretical underpinnings of the resource‐based view, this study explores the relationships among four main variables: (1) variety of collaborative logistics technologies shared between retailers and manufacturers, (2) manufacturer's logistics operations quality provided to retailers, (3) retailer's brand differentiation orientation, and (4) retailer's perceptions of customers loyalty to manufacturer brands. An online survey was conducted on 313 senior marketing and supply chain managers from retailer firms. The results of the structural equation analysis support a mediated relationship between logistical resources and perceived loyalty to manufacturer brands. The retailers believe that shared logistics technologies enable manufacturers and retailers to offer higher levels of availability and visibility of preferred brands to their end‐user customers. In turn, the end‐users become more confident with their decisions to repurchase the same brand offerings.     

Family Size Underpins Grocery Shoppers' Behavioural Response to Stock-Outs

Abstract

Grocery shoppers were questioned about their response to the stock-out of their preferred item of milk and milk products. This measure was used as the dependent variable in a multinomial logit model with the independent variables being shopper dispositions, the contextual shopping situations, age, and household size. This study identified distinctive customer orientations that foreshadowed shoppers' buying a brand variant, buying another brand, and forgoing or postponing their purchase. A binary logit model then estimated the shoppers'orientations that motivated them to seek their preferred item from another store. It emerged that for most shoppers, their household size appeared to be a pressing variable that influenced the way they tackled the non-availability of their normal choice. Marketing literature postulates that large families invariably gravitate to larger pack sizes. Previous research also observes that brand loyalty is negatively correlated to household size. If their regular choice is not available, shoppers could, therefore, easily be driven to seek alternative brands. This study has identified that it would be useful for brand variants to offer shoppers sufficient consumption time till the products' use-by dates to encourage their purchase and prevent shoppers from crossing over to another brand or store. Central to the ample availability of consumption time is the capacity of channel members to support frequent deliveries of larger pack sizes in small lot quantities to the retail store.     

The inter-store mobility of supermarket shoppers

The allegiance of a particular customer, and the distribution across customers of strength of affiliation to a store are important indicators of store health. It is therefore important to understand the extent and determinants of shopper mobility among competing retailers. While shoppers often patronize many stores, they typically have a primary affiliation to a “main store” that captures the majority of their purchases. We examine, in detail, the tendencies of shoppers to transition away from the current main store and adopt another in its place. That is, rather than study all types of store switching behavior, we focus on the decision to change primary allegiance. The model is established in a discrete time hazard framework and estimated as random-effects probit. Data from 548 households taking 88,945 shopping trips among five stores are used to calibrate the model.We find that state dependence is prevalent with nearly three quarters of the shoppers showing progressive attachment to their current main store. Interestingly, this finding is not simply driven by location (i.e., because shoppers are captive to a single store based on geographical distance). More likely, shoppers are unwilling to give up the benefits of store-specific knowledge of assortment, layout and prices. Second, the decision to transition from a current main store is not influenced by temporary price promotions on a common basket of items: Shoppers will cherry-pick, but this alone does not cause them to change primary allegiance. The majority of transitions occur across competing stores of the same price format, which suggests “format loyalty” is an important aspect of shopper behavior. After controlling for unobserved heterogeneity, we find little relationship between observable demographics and the transition probability. We do, however, find that shoppers who spend more per trip are less likely to change main stores, as are less frequent shoppers. Implications for retail management strategy are discussed.     

Store Brand Quality and Retailer’s Product Line Design

This study analyzes a retailer’s store brand quality decision in vertically differentiated product categories. We analyze a game theoretic model composed of one or two national brand manufacturers and a retailer, who strategically chooses the quality level(s) of its store brand(s) relative to the well-established national brand position(s) to maximize its category profit. Our analysis reveals that the nature of a retailer’s store brand quality positioning is quite different from the manufacturer’s national brand positioning decision, and that the best position for a store brand is not “as close to a national brand as possible” as previous studies suggest. Instead, the optimal quality position of each store brand is remarkably sensitive to the distribution of consumers’ willingness-to-pay. In particular, the relative proportions of quality sensitive consumers and price sensitive consumers determine the balance of three key strategic forces — the market expansion force, the retail margin force, and the consumer profitability force, leading to different optimal product line designs for store brands across different category environments. Interestingly, against multiple incumbent national brands, the retailer’s optimal product line design includes a store brand positioned at the highest quality level in the category only if most consumers are moderately quality conscious. We also analyze the implications of national brands’ brand equity for retailers’ store brand strategy.     

Store brand and store loyalty: The moderating role of store brand positioning

Despite extensive research, the relationship between store brand loyalty and store loyalty remains uncertain. Recent research suggest a nonmonotonic relationship between store brand loyalty and store loyalty: positive up to a certain store brand loyalty level, after which it becomes negative (inverted U). However, existing arguments suggest this relationship may relate to the competitive positioning of store brands, especially their price?Cquality positioning. The more quality-oriented the store brand positioning, the more favorable the effect of store brand loyalty appears to be on store loyalty. An empirical study, focused on retailers that simultaneously offer several store brands with different price?Cquality positions, corroborates this proposition. The store brand loyalty level at which store brand loyalty induces a negative effect on store loyalty occurs earlier when the store brand positioning stresses price instead of quality.     

The moderating roles of shopper experience and store type on the relationship between perceived merchandise value and willingness to pay a higher price

In the retail domain, we consider the moderating influence of shopper experience (high versus low experience) and store type (high- versus low-priced stores) on a model that identifies three distinct routes (economic, affective and informational) from perceived merchandise value to willingness to pay a higher price. Each route accounts for a different outcome arising from merchandise value and leading to willingness to pay a higher price. Analyses of data obtained from a sample of 600 shoppers at four grocery stores provide results for specific hypotheses related to each moderator and each distinct route. The results of multiple sample analyses show that the economic route is stronger for high experience shoppers as well as for high-priced stores. Findings pertaining to hypotheses for moderation of both the affective and informational routes are mixed. We discuss the importance of these findings for retail managers as well as for future research.     

Utilitarian and Hedonic Motivators of Shoppers’ Decision to Consult with Salespeople

Many retailers face the questions of whether providing consultation services would enhance store performance and, if so, what the retailers could do to increase the number of shoppers seeking salesperson consultation. Despite its importance, prior research has not answered the question of what influences retail shoppers to consult with salespeople. We use motivation theory and recent theorizing on behavioral decision-making to develop a model of four utilitarian and hedonic motivators of shopper consultation with salespeople. This model, which includes the relationship between consultation and amount of money spent by shoppers, was tested with data from 425 shoppers. Our results demonstrate situational and individual influences, both utilitarian (i.e., shoppers’ purchase uncertainty and efficiency orientation) and hedonic (i.e., shoppers’ situation-related affect toward salespeople and shopping enjoyment), that prompt retail shoppers to consult with salespeople. As well, we find that salesperson consultation is positively related to the amount of money spent by shoppers and completely mediates the spending effects of the four motivators of consultation. This research shows that motivation theory is useful for better understanding salesperson consultation and can assist retailers that compete on service to better implement consultation-oriented strategies.     

Apparel retailers: website quality dimensions and satisfaction

Online retailers would benefit from studies that examine which website attributes can be manipulated to favorably affect consumer satisfaction. The purposes of the study were (1) to examine the dimensionality of website quality for apparel retailers and (2) to determine which dimensions of website quality were significant predictors of shopper satisfaction. Data were collected from 273 female online apparel shoppers. Loiacono's WebQual™ instrument was used to measure shopper perceptions of websites. Factor analysis identified six dimensions of website quality: (1) web appearance, (2) entertainment, (3) informational fit-to-task, (4) transaction capability, (5) response time, and (6) trust. Only three dimensions, informational fit-to-task, transaction capability, and response time, were significant predictors of shopper satisfaction.     

Does store image influence demand for organic store brands?

This research examines the effects of store image on the demand for store brand organic brands. We conduct an empirical study using a unique dataset that combines households' organic product purchases and their ratings of the same stores' images. We find that the type of images consumers develop about a store influences the demand for organic products from that store. In addition, the influence of store image on the demand for store-brand organic products depends on the store brand branding strategy. Although own brands are accepted in stores with quality produce and with quality store brands, they are less likely to be adopted in stores with varied selections. Furthermore, the own-brand strategy (the use of the retailer's own name) is not always an effective branding strategy for organic products, except in some stores.     

How in-store educational and entertaining events influence shopper satisfaction

While recent years have seen an increased use of educational and entertaining events within the store environment, little seems known about how consumers value such events. This study investigates how the staging of education and entertainment-focused in-store events impacts on consumers’ value perceptions, arousal levels and store satisfaction. It is hypothesized that such events have a positive effect on store satisfaction but that their effects are moderated by a shopper’s motivational orientation. Findings from a scenario-based experiment among 786 shoppers from two retail categories (hardware and computer stores) provide support for this. The findings show that task-oriented consumers derive more value and satisfaction from an education-focused event than from an entertainment-focused event, while recreation-oriented consumers appreciate either type of event. The study findings imply that providing education themed events is a safer option for retailers than providing entertainment-focused events because education satisfies a wider range of shopper needs. Shoppers overall derive pleasure from entertainment but task-oriented shoppers tend to also see it as a hindrance to the convenience of shopping, with the result that for these shoppers the hosting of entertainment-focused events may result in reduced store satisfaction levels.     

Temporal and financial risk assessments: How time and money constrain shopper behavior and influence purchase solutions

PurposeThe purpose of this paper is to better understand the constraints that make shopper behavior unique from consumers and how those constraints manifest themselves in retail purchase solutions.Design/methodology/approachThis study utilized value laddering and phenomenological research methodologies to explore the data gathered from 39 interviews of male and female grocery shoppers.FindingsThis research examines the perceived constraints on shopper resources. The data reveal that all shoppers perceive themselves to be constrained by both finances and time. These findings hold across all income, age, and employment strata. As a result, price and convenience no longer function as segmentation tools. Instead, pricing and convenience become thresholds setting shopper “floor” expectations for retailers, service providers and brands.Research limitations/implicationsThis study was limited to grocery shoppers largely located in the southern US. Future research could expand on the variety of product categories and conditions explored, along with the cultural diversity of the participants.Practical implicationsShoppers' broader view of purchase relationships reduces the importance of transactional savings. Shopper consideration of total market basket value, allows for more focus on services and relationships to drive shopper value. Shopper constraints can result in purchase outcomes different than what consumer research would indicate.Originality/valueThis research is the first to examine elements which may constrain shoppers, particularly temporal and financial risk assessments, and how they impact shopper purchase solutions.     

Positioning strategies and congruence in the positioning of high‐end indigenous and foreign retailers in sub‐Saharan Africa: An illustration from Ghana

This article examines the employment of positioning strategies through the lens of international retailing for assessing congruence in the positioning of both indigenous and foreign retailers in Ghana. Six retailers—three indigenous and three foreign—are examined in a triangulated method, each through an in‐depth case study. The results show that the dominant positioning strategies consistently pursued by both indigenous and foreign retailers in Ghana are “service,” “reliability,” and “attractiveness.” Although indigenous retailers (relative to their foreign counterparts) employ more strategies, the majority of foreign retailers exhibit close‐to‐ideal congruence among managers' intentions, actual practice, and customers' perceptions. The findings show that foreign and indigenous retailers pursue varying positioning strategies in the marketplace, further complementing the utility of Western‐developed typologies of positioning strategies in a sub‐Saharan African marketplace. Moreover, the results reveal how indigenous retailers have embraced branding, further attesting to the changing and competitive nature of the Ghanaian marketplace.     

The Impact of Brand Delisting on Store Switching and Brand Switching Intentions

A tool retailers often use to improve their negotiating position with brand manufacturers is to delist - or threaten to delist - the manufacturers’ brand. Because brand manufacturers rely mainly on retailers to sell their products to consumers, a brand delisting will cause a sales loss for the brand manufacturer. Therefore, many brand manufacturers feel enormous pressure to give in and improve buying conditions to favor the retailer. The question thus emerges: Can a brand manufacturer resist a retailer's threat to delist its brand(s)? If a brand delisting severely hurts retail sales, it is easier for a brand manufacturer to resist. The authors study the impact of brand delistings on store switching and brand switching using a controlled online experiment and in-store shopper survey. They develop and test a conceptual model with several antecedents of consumers’ reactions to a brand delisting and conclude that brand equity, market share, and the products’ hedonic level drive store and brand switching.     

Multi-sensory congruent cues in designing retail store atmosphere: Effects on shoppers’ emotions and purchase behavior

This paper explores the effects of multi-sensory congruent cues om shoppers’ emotions and purchase behavior in designing retail store atmosphere. Prior research suggests atmospheric stimuli to contribute to establish an appealing atmosphere and studies have confirmed that shoppers react to different stimuli. However, extant studies have not examined how multi-sensory congruent cues added to a visually dominant store atmosphere might impact shopper emotions and purchase behavior. The findings demonstrate a positive effect of multi-sensory congruent cues on shoppers’ emotions, through valence, and purchase behavior, through time spent and purchase. It is evident that shoppers perceive multi-sensory cues, such as auditory and olfactory ones, to be more effective in a dominant visual store atmosphere compared to only adding new visual stimuli. For retailers, a visually dominant store atmosphere should be designed more in the direction of a multi-sensory atmosphere in offering shoppers more appealing experiences of the retail setting.     

For Indian online shoppers,have saying and doing parted ways?

Grounded in the theory of planned behavior (TPB) and based on both perceptual as well as behavioral data, the study explores e‐service quality (e‐SQ) dimensions’ influence on merchandise value perception (MVP) and how these value perceptions, in turn, impact shopper loyalty intention, finally leading to word‐of‐mouth (WOM) and store patronization behavior. The model was tested for measurement and structural validity, mediation by MVP, and moderation by gender. Findings suggest that: (1) e‐SQ dimensions of efficiency and fulfillment have direct effect on MVP; (2) MVP is a key mediating variable facilitating “indirect‐only” mediation between e‐SQ dimensions and online shoppers’ loyalty intentions; (3) mediation by MVP is not moderated by gender; (4) strong association between shoppers’ loyalty intention and intention to spread positive WOM; and (5) “saying” and “doing” are incompatible because online shoppers’ loyalty intentions or WOM do not translate into store patronization behavior.