The Effect of Customers Loyal to National Brand on Brand Launch Strategy

Kang,, M. , & Hwang,, H. (2018). The Effect of Customers Loyal to National Brand on Brand Launch Strategy. The Journal of Distribution Science, 16(2), 47-51, https://doi.org/https://doi.org/10.15722/jds.16.2.201802.47

copy

Downloaded
Viewed

PDF Download

Abstract

Purpose - Typically, retailers will want PB(Private Brand) products to expand to the needs of low-PB loyal customers as well as existing PB(Private Brand) loyal customers. Therefore, a strategy of minimizing the share of the manufacturer brand in the distributor can be considered as a way to maximize the profit of the distributor. Research design, data, and methodology - In the previous study, the researches about the rivalry and conflict between the NB(National Brand) products and the PB products were mainly made. Previous studies did not model inter-national brand-level competition and inter-store competition. In addition, they have focused only on distributors' decisions from the manufacturer's perspective, and assume channel members have the same level of members(Choi, 1996). Results - This paper tries to apply the game theory to researches on how retailers can maximize the benefits of distributing NB(National Brand) products and PB(Private Brand) products, while distributors can also take advantage of their profits. Conclusions - It was found that providing cheap PBs did not help manufacturers and distributors. Distributors and manufacturers' profits were determined by consumers who purchased NB products that were higher in price and higher in perceived quality before providing existing PB products to consumers.

keywords: PB(Private Brand), NB(National Brand), Retailers, Manufacturers, Profit, Game Theory

Reference

Bettman, J. R. (1974). Relationship of information processing attitude structures to private brand purchasing behavior. Journal of Applied Psychology, 59(1), 79-83.

Choi, S. C. (1996). Pricing Competition in a Duopoly Common Retailer Channel. Journal of Retailing, 72(2), 117–134.

Cotterill, R., & Dhar, R. (2000). Assessing the Competitive Interaction between Private Labels and National Brands. Journal of Business, 73(1), 109-137.

Hoch, S. J., & Banerji, S. (1993). When Do Private Labels Succeed?. Sloan Management Review, 34(4), 57-67.

Hoch, S. J. (1996). How Should National Brands Think about Private Labels?. Sloan Management Review, 37(2), 89-102.

Hogan, A. B. (1996). What drives shoppers’ decisions. Supermarket News, 46(19), 50–52.

Kim, N., & Parker, M. (1999). Collusive Conduct in Private Label Markets. International Journal of Research in Marketing, 16(2), 143-155.

Krishnamurthi, L., & Raj, S. P. (1991). An empirical analysis of the relationship between brand loyalty and consumer price elasticity. Marketing Science, 10(2), 172–183.

Levy, M., & Weitz, B. A. (2006). Retailing Management. Irwin: McGraw-Hill.

10.

Miquel, S., Caplliure, E., & Aldás, J. (2002). The effect of personal involvement on the decision to buy store brands. Journal of Product & Brand Management, 11(1), 6-18.

11.

Narasimhan, C., & Wilcox, R. (1998). Private Labels and the Channel Relationship: A Cross-Category Analysis. Journal of Business, 71(4), 573-600.

12.

Raju, J., Sethuraman, R., & Dhar, S. (1995). The Introduction and Performance of Store Brands. Management Science, 41(6), 957-978.

13.

Rao, A. R., & Sieben, W. A. (1992). The Effects of Prior Knowledge on Price Acceptability and the Type of Information Examination. Journal of Consumer Research, 19(2), 256-270.

14.

Shapiro, E. (2002). Price Lure of Private Label Products Fails to Hook Buyers of Baby Food, Beer. Wall Street Journal, 13(2002), 33.

15.

Smith, D., & Sparks, I. (1993). The Transformation of Physical Distribution in Retailing: The example of Tesco plc. The International Review of Retail, Distribution and Consumer Research, 3(1), 35-64.

16.

Vaidyanathan, R., & Aggarwal, P. (2000). Strategic brand alliances: Implications of ingredient branding for national and private label brands. Journal of Product & Brand Management, 9(4), 214-228.

17.

Veloutsou, C., Gioulistanis, E., & Moutinho, L. (2004). Own labels choice criteria and perceived characteristics in Greece and Scotland: Factors influencing the willingness to buy. Journal of Product & Brand Management, 13(4), 228-241.

바로가기메뉴

Article Contents

Vol.16 No.2

The Effect of Customers Loyal to National Brand on Brand Launch Strategy

Abstract

Reference

The Journal of Distribution Science