• Journal of Distribution Research
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• v.17 no.5
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• pp.113-128
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• 2012

The growth of market share of distributors' brands, also known as private brand, has accelerated in recent years. Sales volumes and market shares of private brands, as well as their appeal to consumers have steadily increased. Carrying private brands comes with numerous advantages, one of which is the relatively high gross margin, which can be 20 - 30% higher compared to manufacturer brands. Recently, many big discount stores are expanding private brand for higher sales volume. Thus, private brands play an important strategic role for retailers. The tendency of growing private brand will decrease sales revenue of both channel members, distributer and manufacturer. The disadvantage for manufacturer is obvious, especially for the manufactures who not only produce their own brands but also retailer brands competing against their own. There are also possible to weaken the brand awareness of manufacturer's brand. The purpose of this study is to explore the perception gap between retailers and manufacturers. we investigated to identify how consumers perceive private brand. In other to study the impact of private brands on distributors, we surveyed the actual condition of private brand and perception towards private brands among consumers, retailers and manufacturers. Based these analysis, we recommended proposal for private brand policies as follows: First, it need to correct imbalance between large retailer and manufacturer. second, we suggest "win-win growth policy", Third, by registering trademark right of national brand, manufacturers have a way of protecting their brands. Forth, manufacturers are encouraged to produce PNB(Private National Brand).

• Journal of the Korean Society of Clothing and Textiles
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• v.33 no.3
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• pp.343-354
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• 2009

This study examined the factors(intrinsic cues, extrinsic cues, private brands familarity, store loyalty) influencing clothing PB preference of large-scale discount stores, and investigated the differences according to the consumer's decision types. Questionaries were collected from 316 female customers in front of the discount stores and the data were analyzed by SPSS 12.0 using T-test, correlation, regression analysis and cluster analysis. The results were as follows. First of all, According to the correlation and regression analysis, the private brand preference were influenced by store loyalty and PB familiarity. Secondly, Differences are found according to the consumer's decision types. That is the price-conscions consumers regard store loyalty, PB familiarity, extrinsic cues, and PB preference more importantly than the value-conscious consumers.

• KDI Journal of Economic Policy
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• v.40 no.2
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• pp.1-21
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• 2018

The private brands (PB) of corporate retailers are booming in Korea. This paper examines the effect of the rise of PB on Korean retail and manufacturing. By utilizing both store-level data and firm-level data, I find that the expansion of PB elevates the profits of corporate retailers but does not significantly affect, and in some cases even reduces, those of subcontracting manufacturers. This occurs not only because sales of national brands (NB) decline due to the launch of similar PBs but also because the imbalance in the bargaining positions of the two parties has caused retail margins to be set high while manufacturers' operating profits are set low. The paper provides policy recommendations for fair contracts and cooperative development between retail and manufacturing companies.

• Journal of the Korean Society of Clothing and Textiles
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• v.34 no.3
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• pp.459-471
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• 2010

This study examines the exposure effects of the brand of fashion manufacturers on the brand attitude of consumers towards the private brand of fashion retailers. In addition, it investigates the exposure effects of the brand of fashion manufacturers on the brand attitude of consumers towards the private brand of fashion retailers based on the sensitivity of consumers as related to the brand. Data are analyzed by a reliability analysis, a factor analysis, the correlation analysis, t-test, and one-way ANOVA. The main results are summarized as follows. First, when the private brand of fashion retailers (Perry Jensen) was shown to customers, three groups ('PB without exposing the brands of fashion manufactures', 'PB with exposing Galaxy', and 'PB with exposing Parkland') revealed statistically significant differences in consumer purchase intentions as well as brand preferences to the PB products of fashion retailers. The group of 'PB with exposing high-sensitive Galaxy group' showed an overall higher brand attitude than the other two groups-'PB without exposing the fashion manufactures' brands' and 'PB with exposing low-sensitive Parkland'. Second, in comparison with the effects of the brand sensitivity of each group, the group with the higher brand sensitivity showed statistically significant browsing intension as well as purchase intention on both brands of fashion manufactures (Galaxy and Parkland).

• Journal of Global Scholars of Marketing Science
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• v.7
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• pp.353-374
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• 2001

Price and brand are two major attributes of products that consumer purchases. Price is important because it is often a measure of worth and quality. Some consumers purchase only well-known national brands. However, By reason of the price competition on account of new business condition and depressions, and consumers practical and rational purchasing tendency, consumers tend to purchase private brands(PB hereafter) because as consumers they expect that producers have reasonable and acceptable quality. Accordingly, The study, with intrinsic cue, extrinsic cue, familiarity anything like these cues from the study of Richardson et aI(1994, 1996), intends to present current topics we guide in retailer's promotion strategy for PB. As for investigating how quality evaluation has on effect on the private brands purchasing behavior of discount store grocery items. This study establishes a hypotheses on the basis of the quality evaluation cues of PB and literature review for purchasing behavior and collects materials for consumers about 196, and also analyzes them using a variety of SPSS/PC+package program. Therefore, the findings of this study provide the following managerial implications. 1) Retailer will successful in increasing private brand market share through dramatic improvement in package design, labeling, advertising, and branding strategies. 2) Planned Purchasers have high intention to repurchase PB because they buy them reasonably in accordance with the estimate therefore, they might have word-of-mouth effect for the evaluation of quality and recognition. They need to acknowledge benefits for PB purchases to maintain purchase like that. 3) The main consumers are housewives in their thirties and forties and they something reasonably because they have a lot of family and retailer will work out.

• 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.

• Journal of Industrial Convergence
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• v.2 no.1
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• pp.159-186
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• 2004

One of the biggest change in the distributive market recently is that the development of private brand is progress actively since consumers purchasing behavior is tend to shift to resonable and practical planned purchase from brand image or brand name. Once the development of private brands is done successfully, the independent merchandising distinguished from other distribution companies is established, store image through customer satisfaction is strengthen and volume of sales and profit are increased. However, the existing studies in this field have not dealt with this matter systematically. Therefore, the purpose of this study is to propose an integrated framework within which to view private brand proneness. Factors found to influence private brand proneness included perceived cost, with private brand, perceived value for money, store fame, perceived risk, perceived quality variation between national and private brand products. Foe empirical analysis, the data were collected from 211 consumers who purchased the private brands in discount store and department store. With the collected survey data, reliability test, factor analysis for validity test and regression analysis for hypotheses test were conducted. Most hypotheses were accepted but on hypotheses were rejected negative relation of perceived cost and private brand proneness. Research results indicate that private brand proneness is affected by perceived value, perceived fame and there are negative relation between private brand proneness and perceived quality variation.

• Journal of Distribution Science
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• v.12 no.8
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• pp.83-90
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• 2014

Purpose - Increasing sales of PB rice products can hinder the growth of domestic brands of rice, notwithstanding that the government is promoting domestic brands of rice. This analysis evaluated the influencing relationship among the variables of PB image, product credibility, and purchase intention of consumers who have never bought PB rice, to know the factors influencing consumers' decisions to purchase PB products. Research design, data, and methodology - PB products' brand image was analyzed as the factor that has a direct effect on purchase intention. The mediation effect of credibility on PB products is also analyzed, in terms of influencing the relationship between PB products' brand image and purchase intention. The analysis is performed on consumers that have not purchased a PB product and consumers who have purchased PB products from major distributors. Data is collected through questionnaires, from 389 of responders, and the AMOS 19.0 statistics package is used as a statistical tool. Results - It is proven that brand image has direct effects on the credibility of the product, and the credibility of product has a direct effect on purchase intention. However, it is revealed that brand image does not directly affect purchase intention, but that brand image indirectly affects it through the credibility of the product. Although the customers' recognition about PB image is low, the result shows that PB products' external attributes have effects on customers' purchase intention relating to the PB product. Therefore, it is important to establish the credibility of the PB product more than other products in terms of marketing. Conclusions - The following are the implications of the study. First, in a rice brand promotion, the credibility of the product should be ensured by a uniform brand image. To ensure the credibility of a product, the RPC brand and other brands should be unified, and the unified brand image should be applied to every product. Second, the package must possess a design as well as contents that could build consumers' perception of product credibility. Products' external attributes contribute to their credibility, which leads the consumers to purchase the products, including those consumers who have never bought PB rice products. Therefore, the products' credibility and sales can be reinforced by applying information about consumers' considerations when buying the PB rice product in different colors, font sizes, and packaging designs. This study is meaningful in two ways. First, it seeks to identify an NB revitalization strategy by exploring the purchasing behavior of customers who have no experience in buying PB rice products. Second, the results of previous studies about general brands are considered and applied in this study in order to investigate the influencing relationship among different factors of PB products. However, this study is a consumer awareness investigation; therefore, its results only have limited meaning to the relationship between brand image and purchase intention.

• 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.

• Journal of Distribution Science
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• v.18 no.7
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• pp.19-25
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• 2020

Purpose: This study analyzes service quality of Pivate Brand (PB) productsto provide some academic and practical implications. Research design, data, and methodology: The focus is on how service quality of No Brand, which has recently received much attention, affects brand attitude and, to confirm whether consumers' prior knowledge of PB moderates this effect. A total of 167 men and women in their 20s who have experience using No Brand were surveyed. Hypothesis was verified by using hierarchical regression analysis. Results: a) Tangibles, reliability, empathy, and assurance of service quality for No Brand have a positive effect on brand attitude; b) The moderating effect of prior knowledge is only statistically significant in the context of reliability. Conclusion: This study provides academic and practical implications for establishing differentiated PB strategies. It highlights the effects of service quality and consumer prior knowledge on brand attitude. This suggests that the sub-dimension of PB service quality has a discriminatory effect on the brand attitude of No Brand, and that consumer's prior knowledge of the product influences reliability of service quality. Therefore, consumer's prior knowledge is important in order to increase trust.