Short answer
When designing store brand strategies for emerging markets, prioritize building trust through consistent quality and value, while also recognizing that price sensitivity can differ significantly between retail environments.
- Field
- Innovation & Markets
- Source
- European Business Review (2015)
- Method
- Quantitative Survey and Structural Equation Modelling
- Sample
- 600 usable questionnaires
- Evidence
- Strong effect
Consumer decisions regarding store brands in emerging markets are significantly influenced by their overall attitude towards the brand, its perceived value, and the store's image, with price perception playing a more critical role in certain retail environments. This innovation & markets research insight is drawn from a 2015 study published in European Business Review. Using Quantitative survey and structural equation modelling with 600 usable questionnaires, researchers explored how this design variable affects real-world outcomes. The key design takeaway: When designing store brand strategies for emerging markets, prioritize building trust through consistent quality and value, while also recognizing that price sensitivity can differ significantly between retail environments.
Store brand choice in emerging markets is driven by perceived value and price-image, with regional variations.
Consumer decisions regarding store brands in emerging markets are significantly influenced by their overall attitude towards the brand, its perceived value, and the store's image, with price perception playing a more critical role in certain retail environments.
European Business Review · 2015
Key Findings
- 01Store brand attitude, price-image, store image, perceived value, and purchase intention all have significant direct or indirect effects on store brand choice.
- 02The influence of price-related factors on store brand choice is stronger for the 'Extra' retail chain compared to the 'Carrefour' chain.
Application
Design takeaway
When designing store brand strategies for emerging markets, prioritize building trust through consistent quality and value, while also recognizing that price sensitivity can differ significantly between retail environments.
How to apply
Before launching or refining a store brand, conduct research to understand the specific market's perception of value, price sensitivity, and the influence of the retail environment on consumer choice.
Project actions
- 01When researching consumer behaviour, consider how different aspects of a brand and its associated store influence purchasing decisions.
- 02Investigate if price sensitivity varies across different retail types or market segments within your design project.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Utilizes structural equation modelling for robust analysis of complex relationships.
- +Focuses on an under-researched emerging market context.
Limitations
A small sample size or focusing on only one type of retail outlet could limit the generalizability of your findings.
Reliability & validity
The use of structural equation modelling and a substantial sample size contribute to the reliability and validity of the findings regarding the relationships between variables. However, the context-specific nature of the study might affect external validity.
Think critically
How might cultural differences within a single emerging market, beyond just the retail chain, further influence the perceived value and price sensitivity of store brands?
Design Principles
"Perceived value and brand attitude are key drivers of consumer choice, but market-specific price sensitivities must be accounted for in product and marketing strategy."
Understanding the nuanced factors that drive store brand adoption in diverse markets is crucial for retailers aiming to expand their private label offerings. This insight allows for the development of targeted marketing strategies that resonate with local consumer perceptions and purchasing habits, ultimately impacting sales and brand loyalty.
What This Means for Your Design
When people decide whether to buy a store's own brand (like a supermarket's own brand of cereal), they think about how good they believe the brand is, how much they think it costs compared to other brands, and the overall feeling they have about the store itself. For some stores, the price is a bigger deal than for others.
How to use in your project
- 1.Reference this study when discussing consumer behaviour models and the factors influencing purchasing decisions for private label products in your design project.
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Quick Cite
Paragraph starter
Research indicates that consumer choice of store brands is influenced by a combination of factors including brand attitude, perceived value, and store image, with price perception playing a variable role depending on the retail context. For instance, in emerging markets like Brazil, price-related considerations can have a more pronounced impact on purchasing decisions within certain retail chains, suggesting a need for tailored marketing strategies.
Source
European Business Review
The influence of image and consumer factors on store brand choice in the Brazilian market
journal · 2015
View sourceQuestions About This Research
- What does the research say about store brand choice in emerging markets is driven by perceived value and price-image, with regional variations?
- When designing store brand strategies for emerging markets, prioritize building trust through consistent quality and value, while also recognizing that price sensitivity can differ significantly between retail environments. Evidence: European Business Review (2015).
- Why does "Store brand choice in emerging markets is driven by perceived value and price-image, with regional variations." matter for design?
- Understanding the nuanced factors that drive store brand adoption in diverse markets is crucial for retailers aiming to expand their private label offerings. This insight allows for the development of targeted marketing strategies that resonate with local consumer perceptions and purchasing habits, ultimately impacting sales and brand loyalty.
- How can designers apply this research?
- When designing store brand strategies for emerging markets, prioritize building trust through consistent quality and value, while also recognizing that price sensitivity can differ significantly between retail environments.
- What were the main findings?
- Store brand attitude, price-image, store image, perceived value, and purchase intention all have significant direct or indirect effects on store brand choice.. The influence of price-related factors on store brand choice is stronger for the 'Extra' retail chain compared to the 'Carrefour' chain.
- What research method was used?
- Quantitative Survey and Structural Equation Modelling with 600 usable questionnaires.
- How strong is the evidence?
- Evidence strength is rated Strong effect, based on a 2015 journal from European Business Review.
- What should I do differently in my next project?
- Before launching or refining a store brand, conduct research to understand the specific market's perception of value, price sensitivity, and the influence of the retail environment on consumer choice.
- What are the limitations?
- The study was limited to consumers in Brazil and shoppers of only two retail chains, which may limit the generalizability of findings to other emerging markets or retail contexts.