Abstract
This chapter aims to review the role of store brands in the global retail industry, thus describing the overview of store brands; store brands and national brands; store brands and consumer buying behavior; store brands and store image; store brands and perceived risk; store brands and perceived quality; store brands and price; store brands and marketing channel; store brands and shelf space allocation; and the importance of store brands in global retail industry. The utilization of store brands is required for modern retail organizations that seek to serve suppliers and consumers, improve business performance, reinforce competitiveness, and gain continuous effectiveness in the global retail industry. The chapter argues that applying store brands has the potential to enhance business performance and reach strategic goals in the global retail industry.
TopBackground
Earlier store brand studies in the 1960s and 1970s were mostly focused on profiling store brand prone customers in terms of shopping habits, socioeconomic factors and personality characteristics (Dick, Jain, & Richardson, 1997). Originally, store brands had a clear orientation to price, which is the main motivation for their purchase (Burt, 2000). The evolution of store brands can be recognized in terms of a strategy adopted by the retail industry with the aim of competing with national brands (Bergès, Hassan, & Monier-Dilhan, 2013). Industry reports confirm that the market share of store brand increases around the world reaching the significant levels across Europe and North America (Kumar & Steenkamp, 2007). The increased globalization of economic activities has created opportunities for retailers in the emerging markets, especially in BRIC nations (Brazil, Russia, India, and China). Firms in the emerging markets should recognize the importance of brand management (Kasemsap, 2014a).
Key Terms in this Chapter
Perceived risk: The consumer's level of uncertainty regarding the outcome of a purchase decision, especially in case of high priced item.
Retail: The activity of selling goods to the public, usually in shops.
BRAND: The unique design, sign, symbol, words, or a combination of these items, employed in creating an image that identifies a product and differentiates it from its competitors.
Store Brand: A product that has the name of the store where individual buy it, rather than the name of the company that made it.
National Brand: A product with a particular brand name that is available all over the country, rather than just in one area.
Perceived Quality: The consumer's opinion of a product's ability to fulfill the individual's expectations.
Consumer Buying Behavior: The process by which individuals search for, select, purchase, use, and dispose of goods and services, in satisfaction of their requirements.
Price: The amount of money for which something is sold.