IDEAS home Printed from https://ideas.repec.org/a/eee/ijrema/v30y2013i4p368-382.html
   My bibliography  Save this article

The impact of national brand introductions on hard-discounter image and share-of-wallet

Author

Listed:
  • Lourenço, Carlos J.S.
  • Gijsbrechts, Els

Abstract

Hard-discounters (HDs) such as Aldi and Lidl are increasingly introducing national brands (NBs) into their private label (PL) dominated assortments. While there is evidence that this enhances sales in the categories where such NBs are added, little is known about how it affects consumers' overall perceptions of the HD and consequently its share of the customers' wallet. Using a unique data set that combines longitudinal information on a HD's perceptions, with that chain's assortment composition, we investigate the impact of NB introductions on the chain's overall value and assortment image, and spending share.

Suggested Citation

  • Lourenço, Carlos J.S. & Gijsbrechts, Els, 2013. "The impact of national brand introductions on hard-discounter image and share-of-wallet," International Journal of Research in Marketing, Elsevier, vol. 30(4), pages 368-382.
  • Handle: RePEc:eee:ijrema:v:30:y:2013:i:4:p:368-382
    DOI: 10.1016/j.ijresmar.2013.04.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0167811613000736
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ijresmar.2013.04.005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gustav Feichtinger & Alfred Luhmer & Gerhard Sorger, 1988. "Optimal Price and Advertising Policy for a Convenience Goods Retailer," Marketing Science, INFORMS, vol. 7(2), pages 187-201.
    2. Sanjay K. Dhar & Stephen J. Hoch, 1997. "Why Store Brand Penetration Varies by Retailer," Marketing Science, INFORMS, vol. 16(3), pages 208-227.
    3. Sharad Borle & Peter Boatwright & Joseph B. Kadane & Joseph C. Nunes & Shmueli Galit, 2005. "The Effect of Product Assortment Changes on Customer Retention," Marketing Science, INFORMS, vol. 24(4), pages 616-622, July.
    4. Deleersnyder, B. & Dekimpe, M.G. & Steenkamp, J.E.B.M. & Koll, O., 2007. "Win-win strategies at discount stores," Other publications TiSEM 34fbe624-0ee7-4c52-b640-7, Tilburg University, School of Economics and Management.
    5. David R. Bell & James M. Lattin, 1998. "Shopping Behavior and Consumer Preference for Store Price Format: Why “Large Basket” Shoppers Prefer EDLP," Marketing Science, INFORMS, vol. 17(1), pages 66-88.
    6. Mantrala, Murali K. & Levy, Michael & Kahn, Barbara E. & Fox, Edward J. & Gaidarev, Peter & Dankworth, Bill & Shah, Denish, 2009. "Why is Assortment Planning so Difficult for Retailers? A Framework and Research Agenda," Journal of Retailing, Elsevier, vol. 85(1), pages 71-83.
    7. Hildebrandt, Lutz, 1988. "Store image and the prediction of performance in retailing," Journal of Business Research, Elsevier, vol. 17(1), pages 91-100, August.
    8. Gijsbrechts, E. & Campo, K. & Nisol, P., 2005. "Beyond Promotion-Based Store Switching : Antecedents and Consequences of Systematic Multiple-Store Shopping," Discussion Paper 2005-76, Tilburg University, Center for Economic Research.
    9. Alba, Joseph W, et al, 1994. "The Influence of Prior Beliefs, Frequency Cues, and Magnitude Cues on Consumers' Perceptions of Comparative Price Data," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 21(2), pages 219-235, September.
    10. Sloot, Laurens M. & Verhoef, Peter C., 2008. "The Impact of Brand Delisting on Store Switching and Brand Switching Intentions," Journal of Retailing, Elsevier, vol. 84(3), pages 281-296.
    11. ter Braak, Anne & Deleersnyder, Barbara & Geyskens, Inge & Dekimpe, Marnik G., 2013. "Does private-label production by national-brand manufacturers create discounter goodwill?," International Journal of Research in Marketing, Elsevier, vol. 30(4), pages 343-357.
    12. Gijsbrechts, Els & Campo, Katia & Nisol, Patricia, 2008. "Beyond promotion-based store switching: Antecedents and patterns of systematic multiple-store shopping," International Journal of Research in Marketing, Elsevier, vol. 25(1), pages 5-21.
    13. Biswas, Abhijit & Wilson, Elizabeth J. & Licata, Jane W., 1993. "Reference pricing studies in marketing: A synthesis of research results," Journal of Business Research, Elsevier, vol. 27(3), pages 239-256, July.
    14. Marc Vanhuele & Shuba Srinivasan & Koen Pauwels, 2010. "Mindset Metrics in Market Response Models: An Integrative Approach," Post-Print hal-00528411, HAL.
    15. J. Miguel Villas-Boas & Russell S. Winer, 1999. "Endogeneity in Brand Choice Models," Management Science, INFORMS, vol. 45(10), pages 1324-1338, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Marcel Lichters & Paul Bengart & Marko Sarstedt & Bodo Vogt, 2017. "What really matters in attraction effect research: when choices have economic consequences," Marketing Letters, Springer, vol. 28(1), pages 127-138, March.
    2. van der Plas, Joep & Dekimpe, Marnik G. & Geyskens, Inge, 2024. "Mind the gap: National brands’ sensitivity to price and line-length differentials at hard discounters versus conventional retailers," Journal of Retailing, Elsevier, vol. 100(2), pages 199-216.
    3. Celine Bonnet & Zohra Bouamra-Mechemache & Gordon J Klein, 2022. "National brands in hard discounters: market expansion and bargaining power effects," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 49(5), pages 1113-1145.
    4. Chenarides, Lauren & Gomez, Miguel I. & Richards, Timothy J. & Yonezawa, Koichi, 2021. "Retail Markups and Discount Store Entry," 2021 Annual Meeting, August 1-3, Austin, Texas 313348, Agricultural and Applied Economics Association.
    5. Lauren Chenarides & Miguel I. Gómez & Timothy J. Richards & Koichi Yonezawa, 2024. "Retail Markups and Discount-Store Entry," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 64(1), pages 147-181, February.
    6. Prediger, Maciel & Huertas-Garcia, Rubén & Gázquez-Abad, Juan Carlos, 2019. "Store flyer design and the intentions to visit the store and buy: The moderating role of perceived variety and perceived store image," Journal of Retailing and Consumer Services, Elsevier, vol. 51(C), pages 202-211.
    7. Hökelekli, Gizem & Lamey, Lien & Verboven, Frank, 2017. "The battle of traditional retailers versus discounters: The role of PL tiers," Journal of Retailing and Consumer Services, Elsevier, vol. 39(C), pages 11-22.
    8. Inge Geyskens & Barbara Deleersnyder & Marnik G. Dekimpe & Didi Lin, 2024. "Do consumers benefit from national-brand listings by hard discounters?," Journal of the Academy of Marketing Science, Springer, vol. 52(1), pages 97-118, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dekimpe, Marnik G. & Gielens, Katrijn & Raju, Jagmohan & Thomas, Jacquelyn S., 2011. "Strategic Assortment Decisions in Information-Intensive and Turbulent Environments," Journal of Retailing, Elsevier, vol. 87(S1), pages 17-28.
    2. Bauer, Johannes C. & Kotouc, Alexander J. & Rudolph, Thomas, 2012. "What constitutes a “good assortment†? A scale for measuring consumers' perceptions of an assortment offered in a grocery category," Journal of Retailing and Consumer Services, Elsevier, vol. 19(1), pages 11-26.
    3. González-Benito, Óscar & Martos-Partal, Mercedes, 2012. "Role of Retailer Positioning and Product Category on the Relationship Between Store Brand Consumption and Store Loyalty," Journal of Retailing, Elsevier, vol. 88(2), pages 236-249.
    4. Hökelekli, Gizem & Lamey, Lien & Verboven, Frank, 2017. "The battle of traditional retailers versus discounters: The role of PL tiers," Journal of Retailing and Consumer Services, Elsevier, vol. 39(C), pages 11-22.
    5. Inge Geyskens & Barbara Deleersnyder & Marnik G. Dekimpe & Didi Lin, 2024. "Do consumers benefit from national-brand listings by hard discounters?," Journal of the Academy of Marketing Science, Springer, vol. 52(1), pages 97-118, January.
    6. Kathleen Cleeren & Frank Verboven & Marnik G. Dekimpe & Katrijn Gielens, 2010. "Intra- and Interformat Competition Among Discounters and Supermarkets," Marketing Science, INFORMS, vol. 29(3), pages 456-473, 05-06.
    7. Zhang, Qin & Gangwar, Manish & Seetharaman, P.B., 2017. "Polygamous Store Loyalties: An Empirical Investigation," Journal of Retailing, Elsevier, vol. 93(4), pages 477-492.
    8. Hoffman, Angela & Senkler, Heike, 2011. "Interformat price competition of multi-product retailers: Evidence for German grocery retailing," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114533, European Association of Agricultural Economists.
    9. Guyt, Jonne & Gijsbrechts, Els, 2018. "On consumer choice patterns and the net impact of feature promotions," International Journal of Research in Marketing, Elsevier, vol. 35(3), pages 490-508.
    10. Marleen Hermans & Néomie Raassens & Kathleen Cleeren, 2024. "What is the impact of a conflict delisting on firm value? An investigation of the role of conflict and firm characteristics," Journal of the Academy of Marketing Science, Springer, vol. 52(1), pages 240-259, January.
    11. Kumar, Ashish & Trivedi, Minakshi & Bezawada, Ram & Sridhar, Karthik, 2012. "A comparative analysis of differential consumer response across supermarket and specialty store in the candy category," Journal of Retailing and Consumer Services, Elsevier, vol. 19(6), pages 561-569.
    12. Beatrice Luceri & Sabrina Latusi & Elisa Martinelli, 2014. "L?acquirente cross-format: modelli di mobilit? nel rocery," MERCATI & COMPETITIVIT?, FrancoAngeli Editore, vol. 2014(3), pages 19-39.
    13. Gázquez-Abad, Juan Carlos & Martínez-López, Francisco J. & Sethuraman, Raj, 2021. "What factors moderate the effect of assortment reduction on store switching? Insights and implications for grocery brands," Journal of Business Research, Elsevier, vol. 133(C), pages 98-115.
    14. Yonezawa, Koichi & Richards, Timothy J., 2016. "Competitive Package Size Decisions," Journal of Retailing, Elsevier, vol. 92(4), pages 445-469.
    15. Juan A. Mañez & Rafael Moner Colonques & Jose J. Sempere-Monerris & Amparo Urbano, 2016. "Brand price differentials in retail distribution: product quality and service quality," Applied Economics, Taylor & Francis Journals, vol. 48(59), pages 5749-5760, December.
    16. ter Braak, Anne & Deleersnyder, Barbara, 2018. "Innovation Cloning: The Introduction and Performance of Private Label Innovation Copycats," Journal of Retailing, Elsevier, vol. 94(3), pages 312-327.
    17. Carlos Lourenco & Els Gijsbrechts, 2022. "Details and Big Pictures: Consumer Use of Actual Prices and Price Images When Choosing a Store," Working Papers Department of Economics 2022/02, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    18. Sethuraman, Raj & Gázquez-Abad, Juan Carlos & Martínez-López, Francisco J., 2022. "The effect of retail assortment size on perceptions, choice, and sales: Review and research directions," Journal of Retailing, Elsevier, vol. 98(1), pages 24-45.
    19. Hense, Jonas & Hübner, Alexander, 2022. "Assortment optimization in omni-channel retailing," European Journal of Operational Research, Elsevier, vol. 301(1), pages 124-140.
    20. Richards, Timothy J. & Chenarides, Lauren & Çakir, Metin, 2022. "Dollar Store Entry," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322100, Agricultural and Applied Economics Association.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ijrema:v:30:y:2013:i:4:p:368-382. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/international-journal-of-research-in-marketing/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.