• Journal of Distribution Research
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• v.17 no.1
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• pp.65-86
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• 2012

The $20^{th}$ century was the era of manufacturer brands which built higher brand equity for consumers. Consumers moved from generic products of inconsistent quality produced by local factories in the $19^{th}$ century to branded products from global manufacturers and manufacturer brands reached consumers through distributors and retailers. Retailers were relatively small compared to their largest suppliers. However, sometime in the 1970s, things began to slowly change as retailers started to develop their own national chains and began international expansion, and consolidation of the retail industry from mom-and-pop stores to global players was well under way (Kumar and Steenkamp 2007, p.2) In South Korea, since the middle of the 1990s, the bulking up of retailers that started then has changed the balance of power between manufacturers and retailers. Retailer private labels, generally referred to as own labels, store brands, distributors own private-label, home brand or own label brand have also been performing strongly in every single local market (Bushman 1993; De Wulf et al. 2005). Private labels now account for one out of every five items sold every day in U.S. supermarkets, drug chains, and mass merchandisers (Kumar and Steenkamp 2007), and the market share in Western Europe is even larger (Euromonitor 2007). In the UK, grocery market share of private labels grew from 39% of sales in 2008 to 41% in 2010 (Marian 2010). Planet Retail (2007, p.1) recently concluded that "[PLs] are set for accelerated growth, with the majority of the world's leading grocers increasing their own label penetration." Private labels have gained wide attention both in the academic literature and popular business press and there is a glowing academic research to the perspective of manufacturers and retailers. Empirical research on private labels has mainly studies the factors explaining private labels market shares across product categories and/or retail chains (Dahr and Hoch 1997; Hoch and Banerji, 1993), factors influencing the private labels proneness of consumers (Baltas and Doyle 1998; Burton et al. 1998; Richardson et al. 1996) and factors how to react brand manufacturers towards PLs (Dunne and Narasimhan 1999; Hoch 1996; Quelch and Harding 1996; Verhoef et al. 2000). Nevertheless, empirical research on factors influencing the production in terms of a manufacturer-retailer is rather anecdotal than theory-based. The objective of this paper is to bridge the gap in these two types of research and explore the factors which influence on manufacturer's private label production based on two competing theories: S-C-P (Structure - Conduct - Performance) paradigm and resource-based theory. In order to do so, the authors used in-depth interview with marketing managers, reviewed retail press and research and presents the conceptual framework that integrates the major determinants of private labels production. From a manufacturer's perspective, supplying private labels often starts on a strategic basis. When a manufacturer engages in private labels, the manufacturer does not have to spend on advertising, retailer promotions or maintain a dedicated sales force. Moreover, if a manufacturer has weak marketing capabilities, the manufacturer can make use of retailer's marketing capability to produce private labels and lessen its marketing cost and increases its profit margin. Figure 1. is the theoretical framework based on a strategic market management perspective, integrated concept of both S-C-P paradigm and resource-based theory. The model includes one mediate variable, marketing capabilities, and the other moderate variable, competitive intensity. Manufacturer's national brand reputation, firm's marketing investment, and product portfolio, which are hypothesized to positively affected manufacturer's marketing capabilities. Then, marketing capabilities has negatively effected on private label production. Moderating effects of competitive intensity are hypothesized on the relationship between marketing capabilities and private label production. To verify the proposed research model and hypotheses, data were collected from 192 manufacturers (212 responses) who are producing private labels in South Korea. Cronbach's alpha test, explanatory / comfirmatory factor analysis, and correlation analysis were employed to validate hypotheses. The following results were drawing using structural equation modeling and all hypotheses are supported. Findings indicate that manufacturer's private label production is strongly related to its marketing capabilities. Consumer marketing capabilities, in turn, is directly connected with the 3 strategic factors (e.g., marketing investment, manufacturer's national brand reputation, and product portfolio). It is moderated by competitive intensity between marketing capabilities and private label production. In conclusion, this research may be the first study to investigate the reasons manufacturers engage in private labels based on two competing theoretic views, S-C-P paradigm and resource-based theory. The private label phenomenon has received growing attention by marketing scholars. In many industries, private labels represent formidable competition to manufacturer brands and manufacturers have a dilemma with selling to as well as competing with their retailers. The current study suggests key factors when manufacturers consider engaging in private label production.

• Journal of Global Scholars of Marketing Science
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• v.20 no.3
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• pp.239-248
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• 2010

This paper describes a collaborative project between academia and industry which focused on improving the marketing and product development strategies for two private label apparel brands of a large regional department store chain in the southeastern United States. The goal of the project was to revitalize product lines of the two brands by incorporating student ideas for new solutions, thereby giving the students practical experience with a real-life industry situation. There were a number of key players involved in the project. A privately-owned department store chain based in the southeastern United States which was seeking an academic partner had recognized a need to update two existing private label brands. They targeted middle-aged consumers looking for casual, moderately priced merchandise. The company was seeking to change direction with both packaging and presentation, and possibly product design. The branding and product development divisions of the company contacted professors in an academic department of a large southeastern state university. Two of the professors agreed that the task would be a good fit for their classes - one was a junior-level Intermediate Brand Management class; the other was a senior-level Fashion Product Development class. The professors felt that by working collaboratively on the project, students would be exposed to a real world scenario, within the security of an academic learning environment. Collaboration within an interdisciplinary team has the advantage of providing experiences and resources beyond the capabilities of a single student and adds "brainpower" to problem-solving processes (Lowman 2000). This goal of improving the capabilities of students directed the instructors in each class to form interdisciplinary teams between the Branding and Product Development classes. In addition, many universities are employing industry partnerships in research and teaching, where collaboration within temporal (semester) and physical (classroom/lab) constraints help to increase students' knowledge and experience of a real-world situation. At the University of Tennessee, the Center of Industrial Services and UT-Knoxville's College of Engineering worked with a company to develop design improvements in its U.S. operations. In this study, Because should be lower case b with a private label retail brand, Wickett, Gaskill and Damhorst's (1999) revised Retail Apparel Product Development Model was used by the product development and brand management teams. This framework was chosen because it addresses apparel product development from the concept to the retail stage. Two classes were involved in this project: a junior level Brand Management class and a senior level Fashion Product Development class. Seven teams were formed which included four students from Brand Management and two students from Product Development. The classes were taught the same semester, but not at the same time. At the beginning of the semester, each class was introduced to the industry partner and given the problem. Half the teams were assigned to the men's brand and half to the women's brand. The teams were responsible for devising approaches to the problem, formulating a timeline for their work, staying in touch with industry representatives and making sure that each member of the team contributed in a positive way. The objective for the teams was to plan, develop, and present a product line using merchandising processes (following the Wickett, Gaskill and Damhorst model) and develop new branding strategies for the proposed lines. The teams performed trend, color, fabrication and target market research; developed sketches for a line; edited the sketches and presented their line plans; wrote specifications; fitted prototypes on fit models, and developed final production samples for presentation to industry. The branding students developed a SWOT analysis, a Brand Measurement report, a mind-map for the brands and a fully integrated Marketing Report which was presented alongside the ideas for the new lines. In future if the opportunity arises to work in this collaborative way with an existing company who wishes to look both at branding and product development strategies, classes will be scheduled at the same time so that students have more time to meet and discuss timelines and assigned tasks. As it was, student groups had to meet outside of each class time and this proved to be a challenging though not uncommon part of teamwork (Pfaff and Huddleston, 2003). Although the logistics of this exercise were time-consuming to set up and administer, professors felt that the benefits to students were multiple. The most important benefit, according to student feedback from both classes, was the opportunity to work with industry professionals, follow their process, and see the results of their work evaluated by the people who made the decisions at the company level. Faculty members were grateful to have a "real-world" case to work with in the classroom to provide focus. Creative ideas and strategies were traded as plans were made, extending and strengthening the departmental links be tween the branding and product development areas. By working not only with students coming from a different knowledge base, but also having to keep in contact with the industry partner and follow the framework and timeline of industry practice, student teams were challenged to produce excellent and innovative work under new circumstances. Working on the product development and branding for "real-life" brands that are struggling gave students an opportunity to see how closely their coursework ties in with the real-world and how creativity, collaboration and flexibility are necessary components of both the design and business aspects of company operations. Industry personnel were impressed by (a) the level and depth of knowledge and execution in the student projects, and (b) the creativity of new ideas for the brands.

• Asia Marketing Journal
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• v.6 no.2
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• pp.3-22
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• 2004

Prior researches related to private brands have mainly focused on the competition between private brands and national brands. But private brands can be allied with national brands to overcome its weak points such as low perceived quality. The purpose of this study is to investigate the consumer responses to the alliance between private brands and national brands. Especially this paper focused on the situation in which national brands are used as ingredient brands to improve the consumers' preference toward private brands. We hypothesized that using national brands as ingredient brands would improved the consumers' perceived quality and buying intention toward private brands. Also we supposed that when national brands had moderate congruity with product category, consumers' preference would be most positive. And this study examined the moderating effects of functional risk. Factorial experimental design and scenario method were employed to test the hypotheses. Also we classified the products as utilitarian-hedonic products and compared the effects of ingredient brands on utilitarian products with hedonic products. Empirical results show that when private brands use national brands as ingredient brands, consumer responses become positive. Also when ingredient brands have moderate congruity with products, consumer responses are most positive. But moderate congruity effect is significant only when functional risk is low.

• The Research Journal of the Costume Culture
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• v.22 no.1
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• pp.143-157
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• 2014

The aims of this study were to identify the dimensions of both store and PB apparel product attributes at large discount stores, and to empirically examine the effects of each dimension of store and PB apparel product attributes on satisfaction with PB apparel products and on repurchase intension. Questionnaires were given to 264 large discount store customers, who have experienced buying PB apparel products at large discount stores. The results were as follows. First, purchased PB items and image, improvement of PB apparel products showed differences by gender. Second, the dimensions for store attributes were categorized as convenient of shopping environment, product quality, customer service, advertising reach, convenient location, and reasonable prices. The PB apparel product attributes were categorized as material handling management, quality, fashion ability, and brand power. Third, generally, both store and PB apparel product attributes at large discount stores are significantly related to PB apparel satisfaction and repurchase intention. PB satisfaction and repurchase intention of males were partly affected by store attributes and PB apparel product attributes. PB satisfaction and repurchasing intention of females, however, were partly affected by only PB apparel product attributes, not store attributes.

• Journal of Distribution Research
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• v.16 no.4
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• pp.1-27
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• 2011

Introduction: Sales of private labels(PU have been growing m recent years. Globally, PLs have already achieved 20% share, although between 25 and 50% share in most of the European markets(AC. Nielson, 2005). These products are aimed to have comparable quality and prices as national brand(NB) products and have been continuously eroding manufacturer's national brand market share. Stores have also started introducing premium PLs that are of higher-quality and more reasonably priced compared to NBs. Worldwide, many retailers already have a multiple-tier private label architecture. Consumers as a consequence are now able to have a more diverse brand choice in store than ever before. Since premium PLs are priced higher than regular PLs and even, in some cases, above NBs, stores can expect to generate higher profits. Brand extensions and private label have been extensively studied in the marketing field. However, less attention has been paid to the private label extension. Therefore, this research focuses on private label extension using the Multi-Attribute Attitude Model(Fishbein and Ajzen, 1975). Especially there are few studies that consider the hierarchical effect of the PL's two parent brands: store brand and the original PL. We assume that the attitude toward each of the two parent brands affects the attitude towards the extended PL. The influence from each parent brand toward extended PL will vary according to the perceived fit between each parent brand and the extended PL. This research focuses on how these two parent brands act as reference points to one another in the consumers' choice consideration. Specifically we seek to understand how store image and attitude towards original PL affect consumer perceptions of extended premium PL. How consumers perceive extended premium PLs could provide strategic suggestions for retailer managers with specific suggestions on whether it is more effective: to position extended premium PL similarly or dissimilarly to original PL especially on the quality dimension and congruency with store image. There is an extensive body of research on branding and brand extensions (e.g. Aaker and Keller, 1990) and more recently on PLs(e.g. Kumar and Steenkamp, 2007). However there are no studies to date that look at the upgrading and influence of original PLs and attitude towards store on the premium PL extension. This research wishes to make a contribution to this gap using the perceived fit difference between parent brands and extended premium PL as the context. In order to meet the above objectives, we investigate which factors heighten consumers' positive attitude toward premium PL extension. Research Model and Hypotheses: When considering the attitude towards the premium PL extension, we expect four factors to have an influence: attitude towards store; attitude towards original PL; perceived congruity between the store image and the premium PL; perceived similarity between the original PL and the premium PL. We expect that all these factors have an influence on consumer attitude towards premium PL extension. Figure 1 gives the research model and hypotheses. Method: Data were collected by an intercept survey conducted on consumers at discount stores. 403 survey responses were attained (total 59.8% female, across all age ranges). Respondents were asked to respond to a series of Questions measured on 7 point likert-type scales. The survey consisted of Questions that measured: the trust towards store and the original PL; the satisfaction towards store and the original PL; the attitudes towards store, the original PL, and the extended premium PL; the perceived similarity of the original PL and the extended premium PL; the perceived congruity between the store image and the extended premium PL. Product images with specific explanations of the features of premium PL, regular PL and NB we reused as the stimuli for the Question response. We developed scales to measure the research constructs. Cronbach's alphaw as measured each construct with the reliability for all constructs exceeding the .70 standard(Nunnally, 1978). Results: To test the hypotheses, path analysis was conducted using LISREL 8.30. The path analysis for verification of the model produced satisfactory results. The validity index shows acceptable results(${\chi}^2=427.00$(P=0.00), GFI= .90, AGFI= .87, NFI= .91, RMSEA= .062, RMR= .047). With the increasing retailer use of premium PLBs, the intention of this research was to examine how consumers use original PL and store image as reference points as to the attitude towards premium PL extension. Results(see table 1 & 2) show that the attitude of each parent brand (attitudes toward store and original pL) influences the attitude towards extended PL and their perceived fit moderates these influences. Attitude toward the extended PL was influenced by the relative level of perceived fit. Discussion of results and future direction: These results suggest that the future strategy for the PL extension needs to consider that positive parent brand attitude is more strongly associated with the attitude toward PL extensions. Specifically, to improve attitude towards PL extension, building and maintaining positive attitude towards original PL is necessary. Positioning premium PL congruently to store image is also important for positive attitude. In order to improve this research, the following alternatives should also be considered. To improve the research model's predictive power, more diverse products should be included in study. Other attributes of product should also be included such as design, brand name since we only considered trust and satisfaction as factors to build consumer attitudes.

• Journal of the Korean Society of Clothing and Textiles
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• v.30 no.9_10 s.157
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• pp.1400-1412
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• 2006

As PB market segments into premium market, PBs were drawing attentions in terms of creating profits as well as a means to differentiate building up store identity. The purpose of this study makes a comparative study on the difference of consumer attitude formation process in discount store and home-shopping distribution channel which are recently on the upswing. This paper investigated the consumer's attitude formation on the private apparel brand. Subjects of this study were consumers in their $20s{\sim}40s$ who are main customer groups of PBs. The data were analyzed by Structural Equation Modeling and Multi-Group Analysis of Amos 5.0 to verify the difference of the path between store PB and premium PB. Following are the results of the study. Consumer attitude formation path on PB grades showed statistically noticeable difference. In discount store PB, store evaluation didn't directly influence on consumer attitude formation but showed indirect effect. On the other hand, in home shopping premium PB case, product evaluation directly influenced on consumer attitudes with store evaluation. Hedonic attitude dimension connected with behavioral attitude(purchase intention) revealed difference in path. Also consumer's evaluation on variables in model turned out to be different according to brand grade.

• The Journal of the Korea Contents Association
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• v.14 no.11
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• pp.398-410
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• 2014

The purpose of this study is threefold. Firstly, what are some attributes of brands that affect perceived authenticity of brands? Secondly, how do the product characteristics such as public goods and private goods change the impacts of attributes on the perceived authenticity of brands? Thirdly, does the perceived authenticity influence consumers' brand attitude and mediate the relationship between brand attributes and the brand attitude? With regard to the role of authenticity in performance of marketing, the authors examined the relationship between the perceived authenticity and brand attitude. The study expands understanding of the relationship between brand attributes and authenticity while at the same time answering the call for further studies on the role of the perceived authenticity in improving brand attitude. The finding also demonstrates that the influence of attributes could be different depending on product categories.

• The Journal of the Korea Contents Association
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• v.14 no.8
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• pp.110-121
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• 2014

As the Korean market is becoming increasingly diverse, it is imperative that marketers targeting the Korean market understand the consumers with various racial and cultural backgrounds. The current study investigated the effects of the endorser race (White vs. Black) on the attitudes toward the ad and brand while varying the experimental context (private vs. public) and product type (high involvement-rational vs. low involvement-emotional) with White participants. Impression management was included as a covariate. The results showed that when the endorser was White and the product was an automobile, participants indicated more positive attitudes toward the ad in the private context than in the public context. When the endorser was Black, the context had no significant effects on the attitudes. The implications of these findings for the Korean market are discussed.

• Journal of Distribution Science
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• v.16 no.1
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• pp.7-15
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• 2018

Purpose - This study aimed to identify the impact of consumers' perception of the value of discount store PB products on brand loyalty and repurchase intention and simultaneously check whether consumers showed a different position depending on gender difference and age. Research design, data, and methodology - For data collection, total of 174 valid copies of questionnaire were obtained for analysis. And simple regression, multiple regression and hierarchical moderated regression analysis was conducted for hypothesis verification and implication Results - It was found that functional, social and emotional value perceived by consumers had a positive impact on brand loyalty and repurchase intention. And it was found that consumers who were in a relatively lower age group were positive, in the relation between emotional value and repurchase intention only. Conclusions - It was suggested that consumers accept discount store PB products positively overall. Therefore, discount stores must not only need to develop their strengths in various parts of PB product beyond consumer's positive perception but also make efforts to raise the social awareness of the use of PB products. And they have to promote consumer decision making by concentrating on emotional factors take a different approach to consumers in a higher age group.

• Journal of Distribution Science
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• v.21 no.2
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• pp.103-110
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• 2023

Purpose: The high-end and variety of recently released items are driving the growth of the distribution industry, which is the purpose of private brand (PB) products. Because PB shortens the distribution process and lowers marketing expenses, such as those associated with various commercials, more people will buy PB while paying lower retail prices. The goal of this study is to make the case that PB can be positioned successfully by determining the influence and direction of each individual constituent concept on how product and store attributes (perceived price, image of retail store) affect the perceived value of PB and the legitimacy of retailers. Research design, data and methodology: The gathered data were examined using PLS-SEM using Smart PLS 3.0 in order to analyze the research model of this study. Internal consistency was verified to demonstrate the measurement model's dependability, and extensive validity analysis, discriminant validity, and analysis were performed to verify the validity. Conclusion: This researcher attempted to gather diverse understandings and viewpoints on PB trends in addition to understanding the existing state of PB products. It is meant to be a unique and successful plan in the PB Brands' marketing strategy. By understanding the brand's value proposition aspects, it is hoped to determine how PB influences brand attitudes based on the findings of this study.