• 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.

• Journal of Distribution Research
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• v.12 no.4
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• pp.109-125
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• 2007

Even though private brands have low cost advantages to national brands, consumers perceive the qualities of private brands lower than the qualities of national brands. To overcome such perceptions of consumers, alliances between private brands and national brands should be tried. This study investigates the effects of consumers' attitude for private brands and national brands on the evaluation of brand alliance between private and national brands, especially when national brands are used as ingredient brands of the private brand. We also study the moderating effects of consumers' price sensitivity and quality sensitivity on this brand alliance evaluation. Additionally, we try to provide some guidelines for successful brand alliances between private and national brands.

• Journal of the Korean Operations Research and Management Science Society
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• v.37 no.4
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• pp.1-18
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• 2012

With the enormous growth and various applications of private brands, national brand manufacturers are confronted with a dilemmatic situation. That is, paradoxically, some manufacturers have come to produce private brands of retailers which are potential competitors to their own brands. This study reveals why manufacturers with their own brands let themselves do the consignment production of retailers' private brands although those private brands may become strong competitors of their own brands and then investigates the condition in which manufacturers may benefit from such consignment production. Through an analysis of a game theoretical model assuming a monopoly market, the present study presents the theoretical backgrounds and provides new insights about consignment production of manufacturer with its own brand for retailer's private brand. First, such consignment production can play a role in mitigating the loss in the consignee manufacturer's own brand sales caused by the private brand in the competitive environment. Second, the effectiveness of such role is affected by the quality of the private brand produced under consignment. In other word, only if the consignee manufacturer keeps the quality of the private brand low, the manufacturer can maintain the benefit from its own brand. In addition, a consigner retailer needs to consider the final objective of launching its private brand, when it chooses its consignee manufacturer of the brand. Finally, a manufacturer with its own brand may consider consignment production as not merely an unavoidable option compelled by a retailer's power but a reasonable strategic choice to reduce the risk from competition.

• Journal of the Korean Society of Clothing and Textiles
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• v.24 no.5
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• pp.628-639
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• 2000

The purpose of this study is to propose a model of private brands proneness form-ation considering the six private brands proneness-related variables simultaneously. Since the theoretical framework is based on previous research in various areas, it serves as an integrative one. Data were collected via intercept surveys conducted at nine regional branches of two major department stores situated in Seoul. Participants(n=1,120), who had previously purchased women's private brand apparel, were asked to complete a questionnaire during two weeks from March 15, 1999 to March 28, 1999. LISREL and SPSS PC+ were used to test the model and analyze its variables. The fitness of the model show the reasonable fit between all indices(RMSR=.036, GFI=.99, AGFI=.92, and NFI=.95). The proposed model supports all the hypothesized relationships. Private brands proneness increases as perceived money value of products, familiarity, positive store image of private brands, and satisfaction of individuals' differentiated needs increase. Furthermore, perceived money value of products increase as perceived risk of private brand purchase and perceived quality variation between private brand products and manufacture's products decrease.

• Journal of Distribution Research
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• v.17 no.5
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• pp.113-128
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• 2012

The growth of market share of distributors' brands, also known as private brand, has accelerated in recent years. Sales volumes and market shares of private brands, as well as their appeal to consumers have steadily increased. Carrying private brands comes with numerous advantages, one of which is the relatively high gross margin, which can be 20 - 30% higher compared to manufacturer brands. Recently, many big discount stores are expanding private brand for higher sales volume. Thus, private brands play an important strategic role for retailers. The tendency of growing private brand will decrease sales revenue of both channel members, distributer and manufacturer. The disadvantage for manufacturer is obvious, especially for the manufactures who not only produce their own brands but also retailer brands competing against their own. There are also possible to weaken the brand awareness of manufacturer's brand. The purpose of this study is to explore the perception gap between retailers and manufacturers. we investigated to identify how consumers perceive private brand. In other to study the impact of private brands on distributors, we surveyed the actual condition of private brand and perception towards private brands among consumers, retailers and manufacturers. Based these analysis, we recommended proposal for private brand policies as follows: First, it need to correct imbalance between large retailer and manufacturer. second, we suggest "win-win growth policy", Third, by registering trademark right of national brand, manufacturers have a way of protecting their brands. Forth, manufacturers are encouraged to produce PNB(Private National Brand).

• Journal of Distribution Research
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• v.8 no.1
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• pp.21-46
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• 2003

Despite importance of private brands in the retail industry, not many studies have been performed on factors affecting consumers' attitude formation toward private brands. This study tries to understand attitude formation toward private brands from the perspective of image congruence. Focusing on three types of image congruence-image congruence between a private brand and a consumer's self, image congruence between a store and a product category used for a private brand, and image congruence between a store and a consumer's self - this study explores relationships and effects of these three types of image congruence on attitudes toward private brands. According to results, image congruence between a private brand and a consumer's self has the strongest effect among three types of image congruence. Image congruence between a store and a product category also has a significant positive effect on attitudes toward private brands. Effects of image congruence between a store and a consumer's self on attitudes toward private brands were opposite to the hypothesized direction, and explanations about the unexpected result are provided.

• Journal of Distribution Research
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• v.4 no.2
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• pp.59-74
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• 1999

Private brands play an important role in formulating the marketing strategies of fashion goods. Merchandisers of Korean department stores are now realizing that the effective marketing of private brands can increase customers store loyalty as well as store profitability. Thus, it is important to better understand customer's decision making processes underlying the purchase of private brand apparels. However, Little research had been undertaken to examine integrated factors influencing purchases of private brand apparel. Therefore, the objective of this study is to propose a model of purchasing intentions of private brand apparel. This study pays attention to (1) perceived value, (2) familarity, (3) store image, (4) differenciated needs, (5) perceived risk, and (6) perceived quality variation of private brand. The proposed model supports all hypotheses presented in the paper. Purchase intentions of private brand increased as perceived money, familiarity, positive store image of private brands, and satisfaction of individuals differentiated needs increase. Furthermore, perceive value of private brand increased as perceived risk and quality variation of private brand increased.

• The Research Journal of the Costume Culture
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• v.27 no.2
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• pp.81-97
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• 2019

This study investigated how the image congruity of social commerce and fashion brand types affects purchase intention and how trust and price sensitivity moderate this relationship. National brands, private brands, and non-brands were used as brand types in the present study. The online survey method was used to gather the data, and 232 data samples were analyzed. The results of the research were as follows. Consumers perceived greater image congruity between social commerce and non-brands, followed by private brands and national brands. The significant perception differences were examined by comparing the mean values. There was a significant positive effect of image congruity of social commerce and non-brands on purchase intention. However, insignificant effects were found for image congruity between social commerce and private brands and national brands. In addition, trust and price sensitivity positively predicted social commerce purchase intention. A significant moderating effect of trust was found on the relationship between purchase intention and image congruity of social commerce and non-brands. A moderating effect of price sensitivity was found on the relationship between purchase intention and image congruity of social commerce and private brands. The findings of the present study offer valuable insights into social commerce concerning implementing diverse fashion brands as well as academic and practical implications.

• KDI Journal of Economic Policy
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• v.40 no.2
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• pp.1-21
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• 2018

The private brands (PB) of corporate retailers are booming in Korea. This paper examines the effect of the rise of PB on Korean retail and manufacturing. By utilizing both store-level data and firm-level data, I find that the expansion of PB elevates the profits of corporate retailers but does not significantly affect, and in some cases even reduces, those of subcontracting manufacturers. This occurs not only because sales of national brands (NB) decline due to the launch of similar PBs but also because the imbalance in the bargaining positions of the two parties has caused retail margins to be set high while manufacturers' operating profits are set low. The paper provides policy recommendations for fair contracts and cooperative development between retail and manufacturing companies.

• Journal of Global Scholars of Marketing Science
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• v.15 no.2
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• pp.49-69
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• 2005

This study is to investigate causal relationship among store image, private brand image and purchase intentions through comparing national distributors with local distributors in Pusan city. More specifically, the objective of this study can be explained as follows; First, what store image have an effect on private brand image. Second, individual store image and their private brand image have different effects. Last, store image and private brand image influence purchase intention of private brands. The results of this study suggests a positive relationship between consumers' perceptions of individual private brands and their associated store image dimensions and purchase intentions toward private brands. A key implication of this research suggests it is desirable for retailers to build up a positive consumer's perceptions of private brand by improving store image. Especially, it is suggested that through the development of specific features of store images, retailers are to manage private brands.