Relationship Between Store Loyalty And Store Positioning

Submitted By malikeh2288
Words: 5875
Pages: 24
Open Document
Mark Lett (2011) 22:297–313 DOI 10.1007/s11002-010-9126-x

Store brand and store loyalty: The moderating role of store brand positioning
Mercedes Martos-Partal & Óscar González-Benito

Published online: 2 October 2010 # Springer Science+Business Media, LLC 2010

Abstract 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–quality 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–quality 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. Keywords Store brand . Generic brand . Brand loyalty . Store loyalty . Store brand positioning A trend characterizing the retail industry in recent years has been the fast growth of store brands, especially among non-durable consumer goods. According to the Private Label Manufacturers Association (PLMA 2009), Europe leads the international scene in terms of market share; in Spain for example, the market share of private-label brands reached 34% in 2008. North America also has experienced significant growth, though it remains far below the European level. Store brands account for one of every five items sold in US supermarkets, drug chains, and mass merchandisers, which equals more than $65 billion in sales, and further increases are
M. Martos-Partal (*) : Ó. González-Benito Dpto. de Administración y Economía de la Empresa, Campus Miguel de Unamuno, Universidad de Salamanca, 37007 Salamanca, Spain e-mail: mmartos@usal.es Ó. González-Benito e-mail: oscargb@usal.es

298

Mark Lett (2011) 22:297–313

expected in coming years. Not only are consumers more prone to buy store brands during economic downturns, but many of them, once they try a store brand, keep buying even when the bad economic times are over (Lamey et al. 2007). This competitive scenario accordingly has generated significant research interest (Sethuraman 2006). Early studies focused on the profile of store brand buyers, but the growing availability of panel and scanner data has enabled researchers to undertake more normative studies. A particularly important research line considers the determinants of store brands’ performance, compared with national brands’ performance (e.g., Bonfrer and Chintagunta 2004; Dhar and Hoch 1997; Hoch and Barneji 1993; Sethuraman 1995). The underlying intuition behind such research assumes that greater store brand share leads to better retailer performance, based largely on the store brand’s potential to improve retailer performance at a manufacturer’s expense. On the one hand, the profit margins for store brands generally are higher than those for national brands. Ailawadi and Harlam (2004) corroborate this assertion, though they also find that the per unit net median profits are not necessarily higher, because store brands charge lower prices than do manufacturer brands. Therefore, retailers’ efforts to shift demand for manufacturer brands into demand for store brands may not lead to greater profitability in the product category. On the other hand, store brands may enhance the bargaining power of retailers and enable them to obtain better contract conditions with suppliers; some studies offer empirical support for this assertion (Ailawadi and Harlam 2004; Mills 1995; Narasimhan and Wilcox 1998). A complementary research
Show More

Related Documents: Relationship Between Store Loyalty And Store Positioning

Leonardo Da Vinci: A Renaissance Man

Leonardo Da Vinci arguably one of the most famous examples of what a Renaissance man is. If anything the phrase Renaissance man came from Da Vinci. Da Vinci was known as a painter, sculptor, architect, inventor, military engineer, and draftsman. He was way past in time when it came to his ideas. Born on April 15, 1452 Da Vinci was a man of many talents. He was trained to be a painter and sculptor his two most famous paintings were the Mona Lisa and the Last supper. Although he only completed a handful…

Words 362 - Pages 2

Leonardo Da Vinci: The Renaissance Man

Leonardo Da Vinci was probably one of the most important artists of the Renaissance. He was born on April 15, 1452 and until today he is known as the "Renaissance Man" because of all of his contributions to the development of various things. He is most famously known for painting the "Monalisa" and "The Last Supper", but he also had a big part in advances in medicine since was a writer, mathematician, artist and inventor. The Vitruvian Man is probably his most famous anatomy drawing, inspired by…

Words 266 - Pages 2

Leonardo Da Vinci: The Last Supper And The Vitruvius Man

Leonardo Da Vinci was an Italian artist in the renaissance period. The Renaissance was a period in European history, from the 14th to the 17th century, regarded as the cultural bridge between the middle Ages and modern history. Leonardo da Vinci was a polymath interested in inventing, painting, sculpting, mathematics, architecture, literature, and much more. He has been called the father of paleontology, iconology and architecture. He is known as one of the greatest painters of all time and is credited…

Words 990 - Pages 4

Leonardo Da Vinci Accomplishments

Leonardo Da Vinci a man who changed the world, a man who will always live in history. Many people thought his ideas were crazy and that his inventions were not possible. Da vinci helped to study the inside of the human body and to create helicopters, tanks and parachutes, important inventions that are used in today’s era. He changed the word of art by creating one of the best paintings in history like “The Mona Lisa” and “The Last Supper. ” Even now, mostly everyone has “The Last Supper” in their…

Words 1122 - Pages 5

Leonardo Da Vinci Accomplishments

Leonardo da Vinci was born on April 15, 1452, in Vinci Italy. His was most noted as an artist, due to the “Last Supper” and the “Mona Lisa” painting. However, he was also an architect, inventor and a scientist. For this reason, his is considered by many to be one of the most talented and intelligent people of all time. Leonardo’s works such as “Virgin of the rocks”, “The Last Supper” and the “Mona Lisa”, have greatly influenced inumerous amounts of artists, which as a result made Leonardo the leading…

Words 912 - Pages 4

Renaissance Man Research Paper

nourishment” (Leonardo Da Vinci). The European Renaissance began in Florence, Italy and occurred between the fourteenth and seventeenth century, approximately 1300-1600 AD (Encyclopedia Britannica). The Renaissance was a time the emphasized humanism, an inward focused philosophy that claims men are self-sufficient, consequently minimizing the need for a God. Out of the humanist movement spawned the idea of the Renaissance Man. The main focus of the Renaissance Man is that “a man can do all things if…

Words 889 - Pages 4

Why Does Da Vinci Need To Know Human Anatomy

Leonardo Da Vinci is a well known artist that was very good at painting. He was well known for being able to catch detail in people's’ bodies and being able to paint really good paintings. Leonardo Da Vinci was a really great painter because he knew human anatomy. In the writing, Art of Painting, he explains that painters need to know human anatomy in order to paint human bodies correctly. They need to know human anatomy in order to show age in their paintings and to show details throughout nature…

Words 564 - Pages 3

Da Vinci Art

Leonardo da Vinci Brandon Mosley Mississippi College Art Appreciation MWF 10am Fall 2014 Leonardo da Vinci is personally one of my favorite artists, and something really cool about him is that was not only just an amazing artist, but also a scientist and an inventor. He is internationally known as the artist of many famous works such as the Mona Lisa, The Last Supper, and also Virgin on the Rocks. In my opinion this man is perhaps the greatest artist to ever live. Leonardo da Vinci…

Words 634 - Pages 3

Essay on Leonardo Da Vinci

Leonardo Da Vinci's Biography Leonardo’s story Leonardo da Vinci the leading artist and intellectual of the Italian Renaissance who's known for his enduring works "The Last Supper" and "Mona Lisa” during the 1480s. Born on April 15, 1452, in Vinci, Italy. Leonardo da Vinci was concerned with the laws of science and nature, which greatly informed his work as a painter, sculptor, inventor and draftsmen. His Idea like the "Virgin of the Rocks," "The Last Supper," "Leda and the Swan" and "Mona Lisa"…

Words 826 - Pages 4

Leonardo Da Vinci Accomplishments

Leonardo Da Vinci was a Renaissance man with tremendous talent known for his contributions in literature, fine arts, mathematics, science, and inventory. Leonardo was born on April 15, 1452, and died on May 2, 1519. Da Vinci was born in Tuscany which is in present-day Italy. His parents were Ser Piero and Caterina, but because Da Vinci was born out of wedlock, he was raised by his father and stepmother. Leonardo grew up in the home of his uncle and grandparents. Leonardo had an artistic ability…

Words 793 - Pages 4