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.

How strong is the evidence?

Evidence strength is rated Strong effect, based on a 2006 journal from International Journal of Retail & Distribution Management.

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.

Short answer

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.

Field: Innovation & Markets
Source: International Journal of Retail & Distribution Management (2006)
Method: Conjoint analysis
Sample: 599 participants
Evidence: Strong effect

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. This innovation & markets research insight is drawn from a 2006 study published in International Journal of Retail & Distribution Management. Using Conjoint analysis with 599 participants, researchers explored how this design variable affects real-world outcomes. The key 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.

Study

Innovation & MarketsHigh ImpactStrong effect

Retailer brand architecture significantly influences consumer shopping intentions

International Journal of Retail & Distribution Management · 2006

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.

Application

Design takeaway

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.

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"]

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?

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.

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.

Add to My Project

Quick Cite

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.

Source

International Journal of Retail & Distribution Management

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

journal · 2006

View source

Related studies

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.