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Competition for memory retrieval between private label and national brands

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  • Nenycz-Thiel, Magda
  • Sharp, Byron
  • Dawes, John
  • Romaniuk, Jenni

Abstract

Perceptions of private label brands (PLBs) reside in consumer memory along with national brands (NBs). When a consumer engages in a choice situation, both PLBs and NBs rely on links to retrieval cues in consumer memory to give them a chance of purchase. This study examines the underlying competition between NBs and PLBs across different retrieval cues. The findings show that PLBs link to the same attributes as NBs and so compete with NBs for retrieval. However, while any brand typically competes most with the brands more commonly associated with any specific cue, the study finds evidence of PLB sub-categorization. That is, if a consumer elicits one PLB for a certain cue, he/she has four times the propensity to elicit other PLBs than elicit a NB for that same cue. This heightened propensity suggests that when a consumer learns that one PLB has a particular quality, the consumer generalizes that quality to other PLBs. Therefore, retailers should realize that the image of competitor retailers' PLBs affects the image of their own PLBs.

Suggested Citation

  • Nenycz-Thiel, Magda & Sharp, Byron & Dawes, John & Romaniuk, Jenni, 2010. "Competition for memory retrieval between private label and national brands," Journal of Business Research, Elsevier, vol. 63(11), pages 1142-1147, November.
    • Handle: RePEc:eee:jbrese:v:63:y:2010:i:11:p:1142-1147
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    2. Eloy Gil Cordero & Francisco Javier Rondan Cataluña & Manuel Rey Moreno, 2016. "Influence of macroeconomic indices on European private labels," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 17(6), pages 1237-1251, November.
    3. Rubio, Natalia & Villaseñor, Nieves & Yagüe, María Jesús, 2017. "Creation of consumer loyalty and trust in the retailer through store brands: The moderating effect of choice of store brand name," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 358-368.
    4. Giang Trinh & Cam Rungie & Malcolm Wright & Carl Driesener & John Dawes, 2014. "Predicting future purchases with the Poisson log-normal model," Marketing Letters, Springer, vol. 25(2), pages 219-234, June.
    5. Abril, Carmen & Sanchez, Joaquin, 2016. "Will they return? Getting private label consumers to come back: Price, promotion, and new product effects," Journal of Retailing and Consumer Services, Elsevier, vol. 31(C), pages 109-116.
    6. Manuel Alonso-Dos-Santos & René Quilodrán Ulloa & Álvaro Salgado Quintana & Diego Vigueras Quijada & Pablo Farías Nazel, 2019. "Nutrition Labeling Schemes and the Time and Effort of Consumer Processing," Sustainability, MDPI, vol. 11(4), pages 1-10, February.

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