Betting exclusively for private labels: Could it have negative consequences for retailers? [Apuesta exclusiva por las marcas privadas: ¿podría tener un impacto negativo para los minoristas?]

Abstract

Private labels have experienced significant growth in Spain in recent years. The size and composition of product assortments has been impacted by the development of own retail brands, in many cases discarding national brands. Some retailers experienced problems arising from these decisions, being forced to reintroduce some of these brands, suggesting the need to have extensive knowledge about the expected consequences of these decisions on brand management, both in terms of volume of sales and image. In this paper, we analyze the relationship between different consumer attitudinal variables and a number of variables related to consumer perception of the store and purchasing behavior, in assortments composed exclusively of private labels. By means of an experiment based on an online survey, the model's causal relationships are established using structural equations to conclude that the image of stores that only offer their own brand is mainly configured by price consciousness and the attitude toward the private label. The private label purchase intention is strongly influenced by the store image and a favorable attitude toward the brand, and loyalty strategies should be aimed at securing a clear perception of providing real value. © 2017 ESIC & AEMARK