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Private label and manufacturer brand choice in a new competitive reality: Strategic directions and the future of brands

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  • Cuneo, Andres
  • Milberg, Sandra J.
  • Alarcon-del-Amo, Maria del Carmen
  • Lopez-Belbeze, Pilar

Abstract

The significant expansion and transformation of private label brands (PLBs) in many categories and markets worldwide have dramatically modified the competitive reality of the marketplace resulting in a new configuration of the brand landscape. This phenomenon has also contributed to the emergence of divergent brand choice patterns among consumers. By segmenting brand buyers on the basis of their brand choice behavior and psychographics, specifically lifestyles, we uncover four consumer segments purchasing different mixes of brand typologies, namely, top-tier and second-tier manufacturer brands as well as PLBs. Each segment exhibits different motives underlying its brand choice pattern. Identifying these diverse and unique brand choice patterns and the drivers of them has meaningful strategic implications for retail managers on how to incentivize PLB choice and for manufacturer brand managers on how to combat PLB growth. Finally, we discuss how the identification of consumer segments exhibiting distinct brand purchase patterns may have implications for the future of brands and brand management.

Suggested Citation

  • Cuneo, Andres & Milberg, Sandra J. & Alarcon-del-Amo, Maria del Carmen & Lopez-Belbeze, Pilar, 2019. "Private label and manufacturer brand choice in a new competitive reality: Strategic directions and the future of brands," European Management Journal, Elsevier, vol. 37(1), pages 117-128.
    • Handle: RePEc:eee:eurman:v:37:y:2019:i:1:p:117-128
    DOI: 10.1016/j.emj.2018.05.003
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    3. Eloy Gil-Cordero & Francisco Javier Rondán-Cataluña & Daniel Sigüenza-Morales, 2020. "Private Label and Macroeconomic Indicators: Europe and USA," Administrative Sciences, MDPI, vol. 10(4), pages 1-17, November.
    4. Shaobo Wu & Shiping Wen & Quan Zhou & Xinghong Qin, 2020. "Coordination of Store Brand Product’s Green Supply Chain Based on Negotiation," Sustainability, MDPI, vol. 12(9), pages 1-25, May.
    5. Wu, Lifang & Yang, Wei & Wu, Jessica, 2021. "Private label management: A literature review," Journal of Business Research, Elsevier, vol. 125(C), pages 368-384.
    6. Sbonelo Gitt Ndlovu & Shalen Heeralal, 2022. "An investigation into marketing activities role on the purchase of private label brands:A systematic review of trends in literature," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(1), pages 33-41, January.
    7. Alić Adi & Činjarević Merima & Agić Emir, 2020. "The role of brand image in consumer-brand relationships: similarities and differences between national and private label brands," Management & Marketing, Sciendo, vol. 15(1), pages 1-16, March.

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