CHAPTER 7: CONCLUSION
In the past, private label was a moniker for consumer products that were lower priced and lower value. Retailers fostered them as they represented a growth engine because of high returns in terms of margins and profitability on a relatively small investment.
As the industry continues to advance, there is increased acknowledgement that this approach to private label management may allow for near-term gain, but can have a detrimental impact on a retailers’ long-term success.
There has been a rapid shift in mindset about the role and requirements for today’s private label brands. Retailers are evolving to a new definition and greater focus for these proprietary offerings to elevate their stature and influence on the
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Statistically significant difference in perceptions of three groups.
• They are considered cheap and trendy.
• Statistically significant difference in perceptions of three groups in terms of quality of private label brands. They are perceived to have acceptable quality.
• Respondents perceive private label brands as of average variety as compared to national brands
• In terms of innovation too respondents perceive private label brands as almost similar to national brands.
• No statistically significant difference in terms of complaint handling.
• Significant difference in terms of exchange facilities. Respondents perceive private label brands have better exchange facilities than national brands.
• Does not stand for high status.
NATIONAL BRANDS
• Three groups agree that national brands are highly priced as compared to private label brands.
• National brands don’t give value for money. National brands are not cheap and trendy.
• National brands stand for high status.
• National brands stand for high quality.
• Respondents are not willing to compromise on quality if the brand in case is national
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• Not working respondents do not see private label as cheap and trendy offering whereas working and business perceive them as cheap and trendy.
• Not working people perceive private label brands offering higher variety as compared to national brands. Working people believe they offer similar variety as of national brands and business group feels private label offers less variety as compared to national brands.
• Working and business group perceive that private labels have more innovative products than national brands.
• Not working respondents perceive status implication of private brands at par with national brands whereas working and business feel they don’t stand for high status.
• Not working and business groups feel complaints are better handled by private label as compared to national brands.
NATIONAL BRANDS
• The three groups perceive national brands to be highly priced as compared to private labels. They are not perceived as value for money. The difference is statistically significant.
• Not working and business respondents feel that national brands are high quality whereas working group feel the quality is at par with private
Today’s society is full of products that have numerous varieties. But, little do customers know about the time before when there was one type of each product. In Malcolm Gladwell’s “Ketchup Conundrum” article, he offers many different situations providing an explanation on how some products came to be, and how some name brands made their way into the business world. Consumers are lucky today that there is almost any variety of product to fit their wants or needs.
-Store brand name enables product to be accepted and adopted more easily by consumers because of brand recognition
Companies realize what people need and they take it as sources to produce commodities. However, companies which have famous brands try to get people’s attention by developing their products. Because there are several options available of commodities, people might be in a dilemma to choose what product they looking for. In fact, that dilemma is not real, it is just what people want. That is what Steve McKevitt claims in his article “Everything Now”. When people go shopping there are limitless choices of one product made by different companies, all choices of this product basically do the same thing, but what makes them different is the brand’s name. Companies with brands are trying to get their consumers by presenting their commodities in ways which let people feel impressed, and that are some things they need to buy. This is what Anne Norton discussed in her article “The Signs of Shopping”. People are often deceived by some famous brands, which they will buy as useless commodities to feel they are distinctive.
A customer’s response falls in two categories, judgment and feelings. Consumers are constantly making judgments about a brand. These judgments fall into four categories: quality, credibility, consideration, and superiority (Keller, 2001). Customers judge a brand based on its actual and perceived quality, and customers judge credibility using the perception of the company’s expertise, trustworthiness, and likability. To what extent is the brand seen as “competent, innovative, and a market leader,” “dependable and sensitive to the interest of customers,” and “fun, interesting, and worth spending time with” (Keller,
According to consumer research conducted by GFM, both consumers and retailers regarded socks as a product category, which was hard for companies to achieve product differentiation. In fact, most companies in this market like Chipman-Union manufactured unbranded socks for private label merchandise, because it was extremely hard to get consumers' brand awareness, and to make them recognize the product features. As a result, there were only two companies which manufactured branded socks : Burlington and Interwoven.
marketplace no matter what the product is when a company begins sacrificing at the customers expense people take notice quickly. This is when the buyer thinks they would be willing to give a little more in the price to be happy about their purchase. This is when Papa John steps in and reminds us all that they have been number one three years in a row in customer satisfaction. People take notice of the decisions that other people make. If they see an empty Papa Johns box in the trash of their next door neighbor they will take notice.
Pricing. Our product is priced lower than our competitors in our industry. Even though our competitors have a different kind of product compared to us.
Threat of substitutes in market as best quality is not always a priority for some customers as they are price sensitive.
[1] Aaker, D.A. and Jacobson, R. (1996) Building Strong Brands. New York: The Free Press.
This is based on the fact, that the small market volume does not enable brands a dynamic development of its positioning. At the opposite extreme, there are markets, which are constantly subjected to change in customers’ needs and preferences. The increasing heterogeneity of this kind of markets represents a challenging aspect for a positioning and requires high individualization (cf. Feddersen 2013, p. 54).
Simon, C.J., & Sullivan, M. W. (1993). “The measurement and determinants of brand equity: A financial approach”. Marketing Science, 12(1), 28-52.
“Linked to a brand, its name is the symbol that adds to or subtract from the value provided by a product or service.” (Aeler, 1991) Like country of origin, brand equity is also one of the reasons why some people want to have a well-known brands in the whole world. Sometimes it is not all about the price anymore because in today’s generation brand is more important than
in this segment are often brand conscious and enjoy the latest fads and trends. They...
...& MAKLAN, S. 2007. The role of brands in a service-dominated world. Journal of Brand Management, 15, 115-122.
From the study it is clear that people often purchase branded products since they are aware of the brand performance or perhaps they have a good past experience about the brands. This makes customer’s become loyal with the specific brand.