• Title/Summary/Keyword: NB(National Brand)

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

  • Kang, Min-Jeong;Hwang, Hee-Joong
    • Journal of Distribution Science
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    • v.16 no.2
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    • pp.47-51
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    • 2018
  • 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.

A Study on the Impact of Attraction and Compromise Effects on Choice Probability of Private Brands (유인 및 타협효과가 유통업체 브랜드(PB)의 선택확률에 미치는 영향에 관한 연구)

  • Choi, Young-Min
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.16 no.3
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    • pp.1806-1814
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    • 2015
  • The strategy of distributors using a PB(Private Brand) inferior to existing PB to increase choice probability of PB arouses difficulty in terms of cost. Therefore, the aim of this study is to verify incentive and compromise effects of PB using two realistic experimental methods. Looking at the verification results, incentive and compromise effects occurred to show increase in choice probability of PB when a new GB(Generic Brand) was added to NB(National Brand) and PB of a manufacturer. In specific during experiment 1, choice probability of PB, the target, was changed when decoy brand was introduced even if there is a large difference in preference and choice probability of the competitor and target due to characteristics of NB and PB. In experiment 2, incentive effect appeared when PB of competitor was positioned as an inferior alternative to increase choice probability of the company's PB. Strategic implications on the study results, limits of this study, and future directivity were proposed.

The Strategies of Manufacturers and Retailers for Customer Acquisition and Retention Using Scanner Panel Data (스캐너 패널 데이터를 이용한 유통업체와 제조업체간의 고객확보 및 유지 전략에 관한 연구)

  • Lee, Seung-yon;Son, Jungmin
    • Knowledge Management Research
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    • v.12 no.3
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    • pp.73-96
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    • 2011
  • Recent market saturation makes the local retailers consider an attempt to innovate the market with the retailer's brand. This is the retailers' efforts to expand the market control through the enhancement of private brands. As the competition among manufacturers extends to the competition between manufacturers and retailers, the marketing knowledges of manufacturers need to be diversified to the ones that can be applied to the manufacturers and retailers due to their bilateral competition. This research concentrates on the customer acquisition strategy (attack strategy) and customer retention strategy (defense strategy) in the place of both sides of manufacturers and retailers. Also this research targets to develop the differential marketing strategies for target market's National Brand(NB)/Private Brand(PB) purchase by analyzing individual customer's purchase probability on repurchase and switch-purchase of NB and PB. This study is based on the data of frequently consumed product, tomato ketchup on scanner panel from the ERIM data of University of Chicago, USA. This study compares and analyzes the NB and PB repurchases and switch-purchase of 4 types. The comparisons provide the informations that which factors should be managed for the attack strategy, the defense strategy, and the differential marketing strategies both for manufacturers and retailers. This research is expected to contribute on cumulating the industrial knowledges of retailers' and manufacturers' survival strategy, expecially focusing on the effect of marketing factors and consumer-characteristic factors.

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The Influence of Consumer's Shopping Value and Brand Alliances on Purchasing Behavior for Apparel Products of Internet Private Brand (쇼핑가치와 상표제휴가 인터넷 쇼핑업체의 PB의류제품 구매행동에 미치는 영향)

  • Hwang, Sun-Jin;Kim, Hee-Jung
    • Journal of the Korean Society of Clothing and Textiles
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    • v.32 no.2
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    • pp.247-258
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    • 2008
  • The purposes of this study were to investigate influences of consumer's shopping value, brand alliances and apparel product involvement on purchasing behavior. The subjects of 172 hedonic shopping value and 208 utilitarian shopping value were chosen to participated for data collection. The data was analyzed by factor analysis, cluster analysis, and ANOVA. The main results of study were summarized as follows: 1. When an Internet Private Brand(PB) did not form brand alliance with a National brand(NB), utilitarian shopping value consumers did not differ in preference irrespective of whether product involvement was high or not. However, when the PB formed brand alliance with well-known NB, they showed higher preference for the high involvement apparel product than the low involvement product. 2. When an Internet PB did not form brand alliance with well-known NB, the utilitarian shopping value consumers' word-of-mouth intention did not differ between the high involvement apparel product and low involvement apparel product. 3. It was revealed that when an Internet PB did not form brand alliance, the utilitarian shopping value consumers showed higher intention to purchase than that of the low involvement product.

The Effects of Perceived Quality Factors on the Customer Loyalty: Focused on the Analysis of Difference between PB and NB (지각된 품질요인이 고객충성도에 미치는 영향: PB와 NB간의 차이분석)

  • Ye, Jong-Suk;Jun, So-Yon
    • Journal of Distribution Research
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    • v.15 no.2
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    • pp.1-34
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    • 2010
  • Introduction As consumers' purchase behavior change into a rational and practical direction, the discount store industry came to have keen competition along with rapid external growth. Therefore as a solution, distribution businesses are concentrating on developing PB(Private Brand) which can realize differentiation and profitability at the same time. And as improvement in customer loyalty beyond customer satisfaction is effective in surviving in an environment with keen competition, PB is being used as a strategic tool to improve customer loyalty. To improve loyalty among PB users, it is necessary to develop PB by examining properties of a customer group, first of all, quality level perceived by consumers should be met to obtain customer satisfaction and customer trust and consequently induce customer loyalty. To provide results of systematic analysis on relations between antecedents influenced perceived quality and variables affecting customer loyalty, this study proposed a research model based on causal relations verified in prior researches and set 16 hypotheses about relations among 9 theoretical variables. Data was collected from 400 adult customers residing in Seoul and the Metropolitan area and using large scale discount stores, among them, 375 copies were analyzed using SPSS 15.0 and Amos 7.0. The findings of the present study followed as; We ascertained that the higher company reputation, brand reputation, product experience and brand familiarity, the higher perceived quality. The study also examined the higher perceived quality, the higher customer satisfaction, customer trust and customer loyalty. The findings showed that the higher customer satisfaction and customer trust, the higher customer loyalty. As for moderating effects between PB and NB in terms of influences of perceived quality factors on perceived quality, we can ascertain that PB was higher than NB in the influences of company reputation on perceived quality while NB was higher than PB in the influences of brand reputation and brand familiarity on perceived quality. These results of empirical analysis will be useful for those concerned to do marketing activities based on a clearer understanding of antecedents and consecutive factors influenced perceived quality. At last, discussions about academical and managerial implications in these results, we suggested the limitations of this study and the future research directions. Research Model and Hypotheses Test After analyzing if antecedent variables having influence on perceived quality shows any difference between PB and NB in terms of their influences on them, the relation between variables that have influence on customer loyalty was determined as Figure 1. We established 16 hypotheses to test and hypotheses are as follows; H1-1: Perceived price has a positive effect on perceived quality. H1-2: It is expected that PB and NB would have different influence in terms of perceived price on perceived quality. H2-1: Company reputation has a positive effect on perceived quality. H2-2: It is expected that PB and NB would have different influence in terms of company reputation on perceived quality. H3-1: Brand reputation has a positive effect on perceived quality. H3-2: It is expected that PB and NB would have different influence in terms of brand reputation on perceived quality. H4-1: Product experience has a positive effect on perceived quality. H4-2: It is expected that PB and NB would have different influence in terms of product experience on perceived quality. H5-1: Brand familiarity has a positive effect on perceived quality. H5-2: It is expected that PB and NB would have different influence in terms of brand familiarity on perceived quality. H6: Perceived quality has a positive effect on customer satisfaction. H7: Perceived quality has a positive effect on customer trust. H8: Perceived quality has a positive effect on customer loyalty. H9: Customer satisfaction has a positive effect on customer trust. H10: Customer satisfaction has a positive effect on customer loyalty. H11: Customer trust has a positive effect on customer loyalty. Results from analyzing main effects of research model is shown as

    , and moderating effects is shown as
    . Results This study is designed with 16 research hypotheses, Results from analyzing their main effects show that 9 of 11 hypotheses were supported and other 2 hypotheses were rejected. On the other hand, results from analyzing their moderating effects show that 3 of 5 hypotheses were supported and other 2 hypotheses were rejected. H1-1: (SPC: Standardized Path Coefficient)=-0.04, t-value=-1.04, p>. 05). H1-2: (${\Delta}\chi^2$=1.10, df=1, p> 0.05). H1-1 and H1-2 are rejected, so it is prove that perceived price is not a significant decision variable having influence on perceived quality and there is no significant variable between PB and NB in terms of influence of perceived price on perceived quality. H2-1: (SPC=0.31, t-value=3.74, p<. 001). H2-2: (${\Delta}\chi^2$=3.93, df=1, p< 0.05). H2-1 and H2-2 are supported, so it is proved that company reputation is a significant decision variable having influence on perceived quality and, in terms of influence of company reputation on perceived quality, PB has relatively stronger influence than NB. H3-1: (SPC=0.26, t-value=5.30, p< .001). H3-2: (${\Delta}\chi^2$=16.81, df=1, p< 0.01). H3-1 and H3-2 are supported, so it is proved that brand reputation is a significant decision variable having influence on perceived quality and, in terms of influence of brand reputation on perceived quality, NB has relatively stronger influence than PB. H4-1: (SPC=0.31, t-value=2.65, p< .05). H4-2: (${\Delta}\chi^2$=1.26, df=1, p> 0.05). H4-1 is supported, but H4-2 is rejected, Therefore, it is proved that product experience is a significant decision variable having influence on perceived quality and, on the other hand, there is no significant different between PB and NB in terms of influence of product experience on product quality. H5-1: (SPC=0.24, t-value=3.00, p<. 05). H5-2: (${\Delta}\chi^2$=5.10, df=1, p< 0.05). H5-1 and H5-2 are supported, so it is proved that brand familiarity is a significant decision variable having influence on perceived quality and, in terms of influence of brand familiarity on perceived quality, NB has relatively stronger influence than PB. H6: (SPC=0.91, t-value=19.06, p< .001). H6 is supported, so a fact that customer satisfaction increases as perceived quality increases is proved. H7: (SPC=0.81, t-value=7.44, p<. 001). H7 is supported, so a fact that customer trust increases as perceived quality increases is proved. H8: (SPC=0.57, t-value=7.87, p< .001). H8 is supported, so a fact that customer loyalty increases as perceived quality increases is proved. H9: (SPC=0.08, t-value=0.76, p> .05). H9 is rejected, so it is proved influence of customer satisfaction on customer trust is not significant. H10: (SPC=0.21, t-value=4.34, p< .001). H10 is supported, so a fact that customer loyalty increases as customer satisfaction increases is proved. H11: (SPC=0.40, t-value=5.68, p< .001). H11 is supported, so a fact that customer loyalty increases as customer trust increases is proved. Implications Although most of existing studies have used function, price, brand, design, service, brand name, store name as antecedent variables for perceived quality, this study used different antecedent variables in order to analyze and distinguish purchase group PB and NB through preliminary research. Therefore, this study may be used as preliminary data for a empirical study that is designed to be helpful for practical jobs. Also, this study is made to be easily applied to any practical job because SEM(Structural Equation Modeling), most strongly explaining the relation between observed variable and latent variable, is used for this study. This study suggests a new strategic point that, in order to increase customer loyalty, customer's perceived quality level should satisfied for inducing customer satisfaction, customer trust, and customer loyalty. Therefore, after finding an effective differentiating factors in perceived quality in order to increase customer loyalty through increasing perceived quality, this factor was made to be applied to PB and NB. Because perceived quality factors which is recognized as being important by consumers is different between PB and NB, this study suggests how to efficiently establish marketing strategy by enhancing a factor. Companies have mostly focused on profitability in terms of analyzing customer loyalty, but this study included positive WOM(word of mouth). Hence, this study suggests that it would be helpful for establishing customer loyalty when consumers have cognitive satisfaction and emotional satisfaction together. Limitations This study used variables perceived price, company reputation, brand reputation, product experience, brand familiarity in order to determine whether each constituent factor has different influence on perceived quality between purchase group PB and NB. These characteristic variables are made up on the basis of the preliminary research, but it is expected that more precise research result would be obtained if additional various variables are included in study. This study selected a practical product that is non-durable, low-priced and bestselling product in a discount store through the preliminary research because it can be easily estimated by consumers. Therefore. generalization of study would be more easily obtained if more various product characteristics is included. Regarding a sample used in this study, it was only based on consumers who purchase products in a large-scale discount store located in Seoul and in the capital area. Accordingly, this sample has some geographical limitation, If a study is expanded by including more areas, more representative research results may be produced. Because this study is only designed to analyze consumers who purchase a product in a large-scale discount store, some difference may be found according to characteristics of each business type. In other words, there is certainly some application limitation, so research result from this study may not be applied to other business types. Future research may have fruitful results if it adjusts a variable to each business type.

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  • A Study on Factors Affecting PB(Private Brand) Products Preference (PB제품의 구매선호도 영향요인)

    • Park, Yeung-Kurn;Kim, Chang-Wan
      • Journal of Global Scholars of Marketing Science
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      • v.9
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      • pp.189-201
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      • 2002
    • Objectives of this study were: First, the purpose of this study is to develope the factors affecting private brand based on past researches and to review effects of the consumer perception factors affecting private brand preference. Second, to set up research model specifying relationships among price perception, information search and experience, Quality perception and private brand preference. Third, to test hypotheses derived from the research model of this study and to attempts to explain how to have the effect the private brand preference. Marketing implications of this study were: As a result LISREL analysis, price perception, informations search and experience, quality perception increase and enhance private brand preference. Limitations of this study were: Data collection methods used in this study were questionable for the lack of general analysis in the difference of preference between characteristics of purchaser and characteristics of non-purchaser exactly because our sample was only limited to Changwon, Masan and Jinhae. So future study has to include samples in other regions.

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    A Study on Consumer's Preference on Private Brand and National Brand by Characteristics (유통업체 브랜드(PB)와 제조업체 브랜드(NB) 상품의 속성별 소비자 선호 분석)

    • Hwang, Seong-Hyuk;Ku, Ja-Seong
      • Journal of Distribution Research
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      • v.13 no.4
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      • pp.47-70
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      • 2008
    • The purpose of this study is to find out characteristic of a product which has the most influence when consumer makes a purchase, and analyze if actual consumers make a purchase with recognition of the brand difference between PB and NB brands using conjoint analysis. As a result, the main factor which consumers consider when they purchase a product is the quality but the factor for brands (NB or PB) do not have an effect on their purchasing. The reason why consumers little consider a factor for PB or NB is that they do not have much knowledge of PB and they recognize the PB as a "me-too" product of NB. Therefore, retailers should develop more differentiated product in order to be recognized by consumers.

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    Consumer Attitude Formation on Private Apparel Brand (유통업체 의류 상표에 대한 소비자 태도 형성)

    • Choi, Mi-Young;Rhee, Eun-Young
      • Journal of the Korean Society of Clothing and Textiles
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      • v.30 no.8
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      • pp.1210-1221
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      • 2006
    • The strength of the PB(Private Brand) is that it can eliminate intermediary in the distribution channel and thoroughly control the quality under its own name. This study has developed traditional studies on private brand proneness in approaching data processing and empirical point of view of a consumer's attitude buildup process on PB through 'recognition-attitude-action(behavioral attitude)'. The subjects of this study are consumers in their $20s{\sim}40s$ who are main customer groups of PBs. A screening process has taken place to select consumers with purchasing experiences of retailor PBs. The data is analyzed by 'Structural Equation Modeling' of Amos 5.0 to verify consumer attitude formation model on private apparel brand. The results generated from this study are as follows: First, the proposed consumer attitude model on private apparel brand consists of store evaluation, experiential product evaluation, cognitive product evaluation, hedonic attitude, utilitarian attitude and purchase intention. Second, not only positively influence on utilitarian attitude but hedonic attitude can arouse positive emotional reaction of a consumer. Third, the store evaluation is ahead of the product evaluation because PB is more related to the image of a store. The influence of the store on PB is relatively stronger when compared with NB.

    A Study on the Determinants of the Perceived Value and Preference toward the Private Brand of the Discount Store (할인점 PB제품에 대한 소비자의 지각적 가치와 선호도의 선행요인에 관한 연구)

    • Kim, Chong-Eui;Han, Dong-Yeo;Kim, So-Ree
      • Proceedings of the Korean DIstribution Association Conference
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      • 2006.05a
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      • pp.35-56
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      • 2006
    • The objective of this research is to identify the factors affecting the quality perception of consumer about the private brand and to investigate how the monetary utility of the private brand affects the consumer's preference. The main finding can be summarized in three points. The consumer's usage experience with PB have a positive but store image has no significant effect on the quality perception of PB. The perceived quality and monetary utility of PB has a significant effect on the quality perception while the perceived quality has stronger effect. The competitiveness of the national brand in the same store, post-usage attitude, the perceived quality, and perceived value have significant effect on the preference toward PB but monetary utility does not. The perceived effect has the strongest effect. This result suggests that even the value-seeking consumers prefer PB only when the perceived quality exceeds a certain limits. This study provides the strategic implications for retail managers and theoretical implication for the researcher studying PB.

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    The Operation of Domestic Women's Apparel Fashion Designer - Focusing on Brand type and Fashion Merchandising Process -

    • Lee, Eun-A;Kwon, Hae-Sook
      • Journal of Fashion Business
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      • v.10 no.3
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      • pp.87-99
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      • 2006
    • For comprehending the duties of fashion designer, Sharon(1989) has suggested to look at the procedure how the goods are being produced. The purpose of this research is to identify the task of domestic fashion designer by comparing and analyzing one's work range and performing level in the fashion merchandising process according to the brand types which one is involved in. The preliminary research for the questionnaire was conducted with 5 chief designers of woman's apparel manufactures in Seoul. They were asked to judge if designer's tasks fit to their carry-out operations in the pre-fixed questionnaire which had been done based on preliminary researches and literatures related with fashion merchandising process. The contents of research questionnaire are 11 questions to understand the general characteristics of companies and the participated subjects, and 42 questions to understand the designers' operations. For the selection of NB, among 503 domestic female apparel brands that were in 'Korean Textile Fashion yearbook (2002-2003), the companies that were located in Seoul and possible for cooperation by researcher's personal relationship were selected. For DB, cooperation was requested for brands that were located in Seoul among the 137 brands that participates on Domestic Collection. For GB, 50 stores were selected at random or by personal relationship among 32 GB shops such as Freya Town, Doosan Tower, New Zone, and so on. Total 300 questionnaire distributed to the designers, 192 copies were used for final data analysis. For data analysis, descriptive statistics and ANOVA, Sceffe test were used using SPSS V. 11 1. The participated fashion designers operated 41 categories of suggested 42 categories in the fashion merchandising process. 2. The ranges and contents of tasks in the fashion merchandising process that fashion designers mainly carry-out are very different according to the brand types and showed much different level of task carry-out. Only in the categories of 'fashion trend information' and 'design ideation', all three brand type showed the highest level of task performance. And the design related tasks presented common higher level of performance than the other tasks in all brand types. In order to comprehend the operation of fashion designer, various approaching methods are required according to various apparel manufactures' characteristics.


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