Will they return? Getting private label consumers to come back: Price, promotion, and new product effects. (July 2016)

• Record Type: Journal Article
• Authors: Abril, Carmen; Sanchez, Joaquin
• Is Part Of: Journal of retailing and consumer services. Volume 31(2016)
• Page Start: 109
• Page End: 116
• Publication Date: 2016-07
• Subjects: Private labels -- Store brands -- Switching -- Hazard Model; Retail trade -- Periodicals; Service industries -- Periodicals; Customer services -- Periodicals; Commerce de détail -- Périodiques; Service à la clientèle -- Périodiques; Customer services; Retail trade; Periodicals; 658.87
• DOI: 10.1016/j.jretconser.2016.03.010
• Languages: English
• ISSNs: 0969-6989

Abstract

Abstract: Using a hazard model specification with two years of consumer panel data, this study simultaneously quantifies the effects of price gaps, non-monetary promotions, and new products on consumer switching from private labels back to manufacturer brands. The research focuses on the switching phenomena, rather than choice, such that time is a relevant variable. According to the results, non-monetary promotions and new products are more effective for recovering consumers than price gap reductions. These findings underscore the importance of understanding how consumers perceive the value of manufacturer brands. Highlights: Price, promotion and product innovation show different effects to recover private label consumers. Price is not the most efficient strategy to win back consumers from private labels. Promotions and new product introductions are more efficient strategies than price. The effectiveness of non-price strategies depend on consumers perceived value.