Study
Innovation & MarketsHigh ImpactStrong effect

Retailer brand architecture significantly influences consumer shopping intentions

The way a retailer structures its brand offerings, specifically the proportion of retailer brands, their perceived quality relative to manufacturer brands, and their visibility, directly impacts consumers' likelihood to shop at a store.

International Journal of Retail & Distribution Management · 2006

01

Key Findings

  • 01Consumers prefer stores with lower price levels.
  • 02Consumers prefer stores that predominantly feature manufacturer brands.
  • 03Consumers prefer stores where the quality of retailer brands is perceived to be equal to the quality of manufacturer brands.
  • 04Consumers prefer stores with high visibility of retailer brands.
02

Application

Design takeaway

Designers and strategists in the retail sector should prioritize a brand architecture that clearly communicates value, quality parity with established brands, and prominent visibility for their own product lines.

How to apply

When developing new retail concepts or re-evaluating existing ones, conduct conjoint analysis to test different brand architecture configurations and their impact on target consumer segments.

Project actions

  • 01When researching consumer preferences, consider using conjoint analysis to understand trade-offs between different product or service features.
  • 02Clearly define the attributes and levels you will test in your conjoint study to ensure meaningful results.
03

Method & Evidence

AimTo determine how the share, quality, and visibility of retailer brands influence consumer intention to shop at retail stores.
MethodConjoint analysis
ProcedureParticipants rated their intention to shop at hypothetical new stores, where store profiles were constructed based on variations in the share of retailer brands, the quality of retailer brands compared to manufacturer brands, and the visibility of retailer brands.
Sample599 participants
ContextRetail and distribution management

Variables

IV["Share of retailer brands","Quality of retailer brands (relative to manufacturer brands)","Visibility of retailer brands"]
DVConsumer intention to shop at stores
CV["Price levels","Hypothetical store context"]
04

Strengths & Limitations

Strengths

  • +Employs a robust statistical method (conjoint analysis) to isolate the impact of specific brand architecture dimensions.
  • +Utilizes a large sample size for statistical power.

Limitations

Hypothetical scenarios may not fully capture the complexity of real-world purchasing decisions, which can be influenced by factors like personal experience, impulse buys, and immediate needs.

Reliability & validity

The use of conjoint analysis with a large sample size enhances the reliability of the findings. However, the validity might be limited by the hypothetical nature of the stimuli, as real-world purchasing decisions involve more complex factors.

Think critically

How might the findings regarding a preference for manufacturer brands be reconciled with the growing trend of successful private label brands in certain market segments?

05

Design Principles

"Consumer preference for retail environments is a function of perceived value, brand equity, and clear communication of product quality and availability."

Understanding these dimensions of brand architecture is crucial for retailers aiming to optimize their market positioning and attract specific consumer segments. It informs strategic decisions about product assortment, private label development, and in-store marketing efforts.

06

What This Means for Your Design

How a store presents its brands (how many are its own, how good they seem compared to others, and how easy they are to see) really matters to shoppers.

How to use in your project

  • 1.Reference this study when discussing how brand architecture and product positioning influence consumer behaviour in your design project.
07

Add to My Project

08

Quick Cite

(2006). Consumer preferences for retailer brand architectures: results from a conjoint study. International Journal of Retail & Distribution Management. https://doi.org/10.1108/09590550610675921 Retrieved from https://designdex.org/study/45a0ae09-61c1-4a72-98fe-3836f2be8abf/retailer-brand-architecture-significantly-influences-consumer-shopping-intentions

Paragraph starter

Research indicates that consumer intentions to shop at a retail establishment are significantly influenced by its brand architecture, specifically the proportion of retailer brands, their perceived quality relative to manufacturer brands, and their visibility within the store environment. This suggests that strategic decisions regarding private label development and in-store merchandising can directly impact market appeal and consumer engagement.

09

Source

International Journal of Retail & Distribution Management

Consumer preferences for retailer brand architectures: results from a conjoint study

journal · 2006

View source

Questions about this research

What does the research say about retailer brand architecture significantly influences consumer shopping intentions?
Designers and strategists in the retail sector should prioritize a brand architecture that clearly communicates value, quality parity with established brands, and prominent visibility for their own product lines. Evidence: International Journal of Retail & Distribution Management (2006).
Why does "Retailer brand architecture significantly influences consumer shopping intentions" matter for design?
Understanding these dimensions of brand architecture is crucial for retailers aiming to optimize their market positioning and attract specific consumer segments. It informs strategic decisions about product assortment, private label development, and in-store marketing efforts.
How can designers apply this research?
Designers and strategists in the retail sector should prioritize a brand architecture that clearly communicates value, quality parity with established brands, and prominent visibility for their own product lines.
What were the main findings?
Consumers prefer stores with lower price levels.. Consumers prefer stores that predominantly feature manufacturer brands.. Consumers prefer stores where the quality of retailer brands is perceived to be equal to the quality of manufacturer brands.. Consumers prefer stores with high visibility of retailer brands.
What research method was used?
Conjoint analysis with 599 participants.
How strong is the evidence?
Evidence strength is rated Strong effect, based on a 2006 journal from International Journal of Retail & Distribution Management.
What should I do differently in my next project?
When developing new retail concepts or re-evaluating existing ones, conduct conjoint analysis to test different brand architecture configurations and their impact on target consumer segments.
What are the limitations?
The study relies on hypothetical store evaluations, and real-world store choice is influenced by numerous other factors not included in the model.
Is there evidence that brand architecture affects design outcomes?
Consumers are drawn to stores that offer lower prices, a strong presence of well-known manufacturer brands, and retailer brands that match the quality of these manufacturer brands, coupled with good in-store visibility for the retailer's own brands. Understanding these dimensions of brand architecture is crucial for re Source: International Journal of Retail & Distribution Management (2006).
Where does this brands research apply?
Retail and distribution management It sits within innovation & markets research on designdex.org.

Related research topics

brand architecture design research · evidence on brand architecture · does brand architecture improve design outcomes · brands studies for designers · brand architecture and brands findings · innovation & markets research evidence