IJRDM Paper
IJRDM Paper
branding research
Introduction
When we discuss research into retail branding, the natural starting point is the
retail product brand – invariably referred to as the “private brand”, the “store
brand” or the “retail brand”. Private brands have generated a vast body of research
on both sides of the Atlantic over the past forty years. In a recent review article,
Hyman et al (2010) generated 73 articles published since 1990, simply through a
key word search in the Business Source Premier database. Whilst such an approach
is likely to underestimate the total volume of material, this figure is nonetheless
impressive. The authors also comment on the variety within this body of work in
terms of the origin of the article (ie USA or not), the product categories investigated,
the research methods used (eg sample frames, sample sizes and types of panel
data), and the analytical tools employed.
One obvious criticism of key word searches of electronic databases is that they are
dependent on the choice of terminology (and journal inclusion). Indeed, in the above
study the authors used the composite term “private label brand”, presumably to
extend the scope of their search. Without wishing to rehearse the terminology
debate covered in most retail marketing textbooks it is evident from the focus of
several early studies that the definition of the “subject” has caused some concern (eg
Schutte, 1969; Morris, 1979; Simmons and Meredith, 1984; Martell, 1986; de
Chernatony & McMillan, 1988). This extended discussion around terminology,
which was often based on product features such as quality composition, price
position, packaging and naming, implies that a certain degree of variety and/or
evolution is hidden by the umbrella term “retail brand”. This is an important issue
in retail (product) brand research as the national setting, the timing of the study and
even the choice of retail company may mean that cross study comparisons may not
be considering like with like. The “retail brand” in one study and in one context may
not be directly comparable with the “retail brand” in another.
In the remainder of this paper we will first consider the broad themes found within
existing research focused upon the retail (product) brand, before exploring an
extension of the research focus to incorporate a more holistic view of branding in
retailing, which involves the retailer as a store and as an organisation. We conclude
with a few comments on the future direction of research.
It is perhaps not surprising that the initial focus for research was the identification
of private brand consumers. Various attempts have been made to determine the
characteristics of those prone to purchase these products (eg Frank and Boyd, 1965;
Myers, 1967; Rao, 1969; and Burger and Schott, 1972). However, these studies –
whether exploring private brand consumers in general or having a specific focus on
generic brand consumers (eg Granzin 1981; McEnally and Hawes, 1984; Rosen,
1984; Wilkes and Valencia, 1985; Szymanski and Busch, 1987) – have generally
failed to determine consistent consumer profiles. This theme has persisted within
the literature since private brands first appeared and has been explored in many
national contexts (eg Richardson et al, 1996; Ailawadi et al, 2001; Baltas, 2003;
Bonfrer and Chintagunta, 2004; Zielke and Dobbelstein, 2007; Baltas and
Argouslidis, 2007; Mártinez and Montaner, 2008), and via a variety of approaches
including the use of human personality research (Whelan and Davies, 2006). It is
now accepted that that a wide range of customers with different demographic,
socio‐economic, lifestyle and value profiles purchase private brand products.
Closely aligned to this theme is a second stream of research which took the retail
brand product as the object, and sought to identify the product attributes which
were of greatest interest to consumers (eg Baltas, 1997; Baltas et al, 1997; Gonzales
Mieres et al, 2006; Grunert et al, 2006; Glynn and Chen, 2009). As the retail brand
has evolved over time, the actual and perceived quality gap with national brands
declined (Hoch and Banerji 1993; Quelch and Harding 1996), as has the price
differential between the two, and other largely marketing related factors have come
into play. Consequently, the focus in the research into product attributes has
become more multi‐dimensional, moving away from considerations of the price‐
quality relationship to encompass perceived risk, presentational issues (shelf space,
packaging cues and positioning) and product category and retail format
considerations.
As the sales of retail brands have grown and as they began to dominate certain
product categories and move into others, academic research also sought to explain
their growth (eg Davies et al, 1986; Fitzell, 1993; 2003; Hoch, 1996; Dhar and Hoch,
1997; Dunne and Narasimham, 1999; Burt, 2000; Kumar and Steenkamp, 2007
Lamey et al, 2007), and why retailers sold these products (Mills, 1995; Steenkamp
and Dekimpe, 1997; Steiner, 2004). Several motives were identified including the
potential of private brands to: generate higher margins (Hoch & Banerji, 1993) and
improve category profitability (Bontemps et al, 2008; Raju et al, 1995; Putsis and
Cottrill, 1999); lower the financial risk of new product launch; provide a source of
differentiation from competitors either through positioning or availability
(Richardson et al 1994; Davies 1990; Sudhir and Talukdar, 2004; Scott Morton and
Zettelmeyer, 2004; Liu and Wang 2008;); engender greater store and retailer loyalty
(Steenkamp & Dekimpe, 1997; Cortjens and Lal, 2000; Binninger, 2008); improve
retailer image; and allow a wide range of product options to be offered to meet the
differing needs and values of customer groups (Sayman et al, 2002; Anselmsson and
Johansson, 2007)
There has been less of a focus, certainly in terms of the volume of published output,
on the role of suppliers in retail brand growth and particularly the implications of
retail brands for relationships between retailers and suppliers. Research exploring
the channel perspective has focused on changing power relationships in the channel
and the specifics of procuring private brands (Shaw et al 1992; Bhasin et al, 1995;
Collins and Burt, 1999; Cotterill and Putis, 2001; Scott‐Morton and Zettelmeyer,
2004; Oubiña et al, 2006; Johansson and Burt, 2004; Tarzijan, 2004)
The emerging view of the retail brand as a wider concept than simply a product
brand was discussed in the Journal of Retailing special issue of 2004. In the position
paper introducing the issue, Ailawadi and Keller (2004) recognise a broader concept
of branding in retailing. They acknowledge that retailer brands are more multi‐
sensory than product brands and discuss the linkages with retail image in
particular. The private brand is relegated to an (albeit) important part of the brand
portfolio offered by retailers, and they argue that it is the image of the retailer held
by customers that is the basis of retail brand equity.
If trust comes from a retail name, where do customers get their impressions of the
retail brand from? Steiner (2004) provides an interesting historical context to
national and private brand competition, and quotes from the work of Braithwaite,
published in the late 1920’s. She observed that advertising and reputation
contributed more than quality to the price differential between leading advertised
national brands and unadvertised national brands and private labels. Although
private labels were cheaper they “do not however dispense with reputation
altogether as a factor in marketing, For the reputation of these large shops
themselves, is one of the means by which they are able to secure volume and rapidity of
turnover” (Braithwaite, 1928 in Steiner, 2004). In short, trust (or reputation)
emerges from consumer interactions with stores and the retail company itself.
When we talk about brands in retailing as customers we generally refer to a specific
(named) company or a store – we rarely say “I am going to the superstore”, “to the
convenience store” or “to the clothes shop”. As consumers we have often decided
which retailers or groups of retailers to visit before we start a shopping trip, on the
basis of pre‐existing conceptions and past experiences of those stores, and
interactions with the retailer through the store. It has long been recognised that
retailers create an image or reputation in the minds of the consumers and it would
be remiss in an article of this nature not to mention Martineau (1958) and the idea
of the personality of the store (!). The store is a crucial – and unique – element in
retailer branding. It is the place where the customer experiences the retailer and to
many the store is the retail product (Floor, 2006). The store as the “brand” is
probably easier to relate to in several non‐ food sectors where the product on offer
is 100% store brand (eg IKEA, Zara, Next, the Gap etc).
More recently, other studies have explored the link between store image and the
store brand. In Canada, Collins‐Dodd and Lindley (2003) concluded, perhaps not
surprisingly, that store image is more complex and dynamic than product
associations, and suggested that the store name on a store brand was in effect a
form of brand extension, and that positive store attributes could be leveraged to
increase awareness of and build positive perceptions of store brands. “A strong
relationship between store and store brand image is the fundamental requirement for
a successful differentiation strategy.” In a similar vein, Semeiijn et al (2004) claimed
a direct and linear relationship between store image and attitudes towards store
brands for three Dutch grocery chains and a selection of products chosen to
represent different levels and types of consumer risk. The authors claimed that
their research suggested that “developing, nourishing and sustaining a store image
can create differentiation and positioning relative to other chains and see profitable
store brands”. Finally in a different setting, the department store, Vahie and Paswan
(2006) found that store atmosphere and store quality positively influenced
consumer perceptions of store brand quality, although it was also noted that
congruence between national brands and store image could have a negative
influence on store brand quality perceptions. The authors emphasised that the
subject of their study, clothes, are a higher involvement and higher price type of
purchase compared to routinely purchased groceries, and carry a greater degree of
social risk.
The growing attention paid to the retail store as the embodiment (or the source) of
the brand in retailing brings us back to further issues around terminology and
conceptualisations. Ailawaldi & Keller (2004) quite correctly make the case for a
greater integration of mainstream branding concepts into retail brand research “Our
contention is that branding and brand management principles can and should be
applied to retail brands. Even though there has not been much academic research on
retail branding per se, a lot of work has been done on retailer actions and consumer
perceptions of retailer image that has direct relevance to branding” But as they,
themselves suggest, this generally entails taking store image as a proxy for retailer
brand image.
This developing of the brand concept in retailing brings us into the area of corporate
branding. Mårteson (2006) in yet another attempt to understand the determinants
of satisfaction and loyalty in retailing defines corporate image as store image.
Although she concludes that the key factor for customers is the store as a brand, so
“retailers must be good at retailing”, she also makes another important observation
about the holistic nature of branding in retailing. “A coherent look and feel that
reflects the values of the corporate brand is assumed to have a positive impact on the
store brands carrying the corporate name”
In some of the generic work on corporate brands, retailers are often cited as
examples of strong corporate brands, so it is not surprising that the role of
corporate branding – or at least elements of corporate branding – in retailing is
starting to attract attention. The relational nature of corporate branding makes
retailing an obvious candidate for consideration. For example, Mitchell (1999) in a
discussion on Brand Reality identifies a series of relationships between retailers and
consumers which he classifies as communication linkages, experience links and
emotional links – images and associations – with consumers, all of which are
claimed to deliver extra added value, communicate something about the brand, and
learn from the customer in real time.
Burt and Sparks (2002) note that the basic features of corporate branding are all
inherently applicable in retailing – although they caution that the nature of retailing
and the scope and intensity of relationships with stakeholders may pose potential
challenges of consistency to retail corporate branding. Further challenges may arise
from the often raised tension between costs and service as productivity gains are
sought in retailing, and added dimension of retail internationalisation. Despite this,
Tarnovskaya et al (2008), explore the role of corporate branding in market driving,
specifically in an international retailing context with IKEA in Russia, and argue that
a strong corporate brand may both provide competitive advantage and determine
approaches and activities in new international markets.
The significance of corporate branding has certainly been recognised by the retail
industry itself. Burghausen and Fan (2002) explored how executives at seven UK
retailers considered and thought about corporate branding in their own
organisations. There was a growing awareness of the corporate brand as a holistic
process and the role of the corporate brand as a strategic reference point for all
activities and behaviours, although the respondents stressed that the corporate
brand was not static and that it would evolve and change over time. However, the
respondents also tended to place a specific emphasis in their views upon the
centrality of the customer – which is perhaps not surprising given the management
mantra of the past few decades. The importance of core corporate values was
recognised as a reference point for the organisation, but these were often expressed
in terms of customer relevant values, similarly the importance of relational
networks within corporate branding was acknowledged, but again these were
primarily articulated in respect of customer outcomes.
The Future ?
In the Journal of Retailing special issue Ailawaldi & Keller (2004) suggested a
research agenda encompassing three themes (1) the development and application of
traditional branding theory to retailer branding, specifically the concepts of brand
personality, experiential marketing, and brand architecture; (2) the role of private
labels in building retailer equity through issues such as category considerations,
private brand tiers and positioning, branding (naming) options and brand
extension, and the response of manufacturers; and (3) the measurement of brand
equity, which presents several serious challenges. We would suggest that further
work into corporate branding in retailing and the relationship to the store brand
and product brand would clearly fit into theme (1) and contribute to themes (2) and
(3).
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