Multiple store brands: An empirical investigation of consumer perception

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Velez, Jorge
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University of Guelph

For years, supermarkets have been using store brands to attract price-sensitive consumers. Recently, supermarkets have introduced premium store brands in the same product category to compete with national brands. This has not caught the attention of researchers. Thus, the central purpose of this study was to investigate the role of multiple store brands and consumer perception about them. This objective was accomplished by selecting ketchup as a product category and by collecting primary data from shoppers across three supermarket chains in southwestern Ontario. The survey was conducted by shopper intercept method. The results revealed four equal sized segments in the market place: Loyals, Switchers, Price-Hunters, and Indifferents. It was discovered that packaging is an important attribute when buying ketchup; consumers prefer the traditional red color and few are willing to try a different color. The introduction of the premium store brand, in the market brought to supermarkets significant extra market share and it comes mainly from the national brand market share and marginally from its store brand peer. These findings may provide useful information for both supermarkets and manufacturers.

store brands, premium store brand, consumer perception, loyals, switchers, price-Hunters, indifferents, packaging