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

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

Research output: Contribution to journalArticlepeer-review

35 Scopus citations

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.

Original languageEnglish
Pages (from-to)117-128
Number of pages12
JournalEuropean Management Journal
Volume37
Issue number1
DOIs
StatePublished - Feb 2019
Externally publishedYes

Keywords

  • Brand choice
  • Hybrid consumption
  • Latent class analysis
  • Manufacturer brands
  • Market segmentation
  • Polarized consumption
  • Private label brands

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