Consumer preferences for retailer brand architectures: results from a conjoint study

• Published in: International journal of retail & distribution management Vol. 34; no. 8; pp. 597 - 608
• Main Authors: Grunert, Klaus G, Esbjerg, Lars, Bech-Larsen, Tino, Brunsø, Karen, Jørn Juhl, Hans
• Format: Journal Article
• Language: English
• Published: Bradford Emerald Group Publishing Limited 01.08.2006
• Subjects: Brand awareness; Brand identification; Brand loyalty; Brands; Category management; Conjoint analysis; Consumer behavior; Consumers; Customer orientation; Food; Generic products; Manufacturers; Market segments; Price levels; Retail stores; Retailers; Retailing industry; Denmark; Customer orientation; Brand awareness; Retailers
• ISSN: 0959-0552; 1758-6690
• DOI: 10.1108/09590550610675921

Purpose - The purpose of this paper is to investigate how three dimensions of retailer brand architecture - share or retailer brands, quality of retailer brands and visibility of retailer brands - affect consumer intention to shop at storesDesign methodology approach - A conjoint analysis is conducted with a sample of 599 Danish consumers, which rated intention to shop at hypothetical new shops based on profiles derived from an orthogonal designFindings - Two segments of consumers emerge, one price conscious and one more differentiated. Consumers prefer shops with lower price levels, with dominantly manufacturer brands, with quality of retailer brands at the same level as manufacturer brands, and with good visibility of retailer brands.Research limitations implications - The results are based on the evaluation of hypothetical stores, and many additional factors affect store choice in the real world.Practical implications - Results suggest that we may be heading towards a polarized retail market, mainly divided between discount concepts and high quality retailer brand concepts.Originality value - The paper is innovative in isolating the effect of dimensions of retailer brand architecture on consumer store preference.