Store Brands
Consumer Perceptions of Store Brands
Presented By:
Chris Frimel
Jeffrey Fox
L. Renee Graves
Dustin Huffman
Introduction
Consumer perception heavily influences consumption and spending behavior. As consumers search for ways to stretch their tight budgets, many factors motivate these behaviors. Such factors include loyalty, convenience, quality, quantity, usages, product placement, and many others. Of these factors, price, quality, and convenience are most sought after when consumers participate in everyday shopping. However, because product placements trigger certain impulses during spending, retailers have the biggest influence on consumer shopping. In the article by González-Benito, Óscar, “Price-oriented retailers tend to develop price-oriented store brand strategies, and their customers tend to be more price sensitive. Therefore, we expect that retailer positioning influences the relationship between store brand purchases and store loyalty.”
Much of the economy is still trying to recover from the recession. Because of this, consumer shopping trends are constantly changing to adapt to rising price levels. To help consumers adapt to their changes, many name brand companies increased their promotional marketing techniques to include more discounts which encourage consumers to continue buying their products. However, “when consumers become conditioned to buy products on promotion, they may be less likely to make purchases during non-promotional periods.” (Mulhern, Williams, Leone. 1998). These periods lead to higher consumption of generic products. In the article, “Shoppers Less Loyal to Big Brands, Survey Shows”, the author interviewed Pat Conroy, vice chairman and U.S. Consumer Producers Leader at Deloitte who stated "The recession was so severe that people across all income levels had to go out and experiment with ways to save. They tried various lower cost options and the vast majority of them found there was little noticeable
Presented By:
Chris Frimel
Jeffrey Fox
L. Renee Graves
Dustin Huffman
Introduction
Consumer perception heavily influences consumption and spending behavior. As consumers search for ways to stretch their tight budgets, many factors motivate these behaviors. Such factors include loyalty, convenience, quality, quantity, usages, product placement, and many others. Of these factors, price, quality, and convenience are most sought after when consumers participate in everyday shopping. However, because product placements trigger certain impulses during spending, retailers have the biggest influence on consumer shopping. In the article by González-Benito, Óscar, “Price-oriented retailers tend to develop price-oriented store brand strategies, and their customers tend to be more price sensitive. Therefore, we expect that retailer positioning influences the relationship between store brand purchases and store loyalty.”
Much of the economy is still trying to recover from the recession. Because of this, consumer shopping trends are constantly changing to adapt to rising price levels. To help consumers adapt to their changes, many name brand companies increased their promotional marketing techniques to include more discounts which encourage consumers to continue buying their products. However, “when consumers become conditioned to buy products on promotion, they may be less likely to make purchases during non-promotional periods.” (Mulhern, Williams, Leone. 1998). These periods lead to higher consumption of generic products. In the article, “Shoppers Less Loyal to Big Brands, Survey Shows”, the author interviewed Pat Conroy, vice chairman and U.S. Consumer Producers Leader at Deloitte who stated "The recession was so severe that people across all income levels had to go out and experiment with ways to save. They tried various lower cost options and the vast majority of them found there was little noticeable
Cited: González-Benito, Óscar, César A. Bustos-Reyes, and Pablo A. Muñoz-Gallego (2007), “Isolating the Geodemographic Characterization of Retail Format Choice form the Effects of Spatial Mulhern, Francis J. and Robert P. Leone (1991), “Implicit Price Bundling of Retail Products: A Multiproduct Approach to Maximizing Store Profitability,” Journal of Marketing, 55 Landsman, Stephanie. “Americans sticking with cheaper store brands, survey finds” (2010) Gustin, Georgina Russel, Michelle. "In the Spotlight - US Private-label Consolidation Heats up." ABI Inform Complete. N.p., 1 June 2012. Web. 30 Apr. 2013. . Tuttle, Brad. "Supermarket Scene: Shopping Baskets (Not Carts) Filled with Cheap Store Brands." Business Money Supermarket Scene Shopping Baskets Not Carts Filled with Cheap Store Brands Comments. Time, 4 Oct. 2010. Web. 28 Apr. 2013. .