The use of private labels to influence the customer-based brand equity of South African FMCG retailers
van der Westhuizen, Jasper Petrus
ABSTRACT The purpose of this research was to assess and evaluate the use of private label brands by South African food and grocery retailers to positively influence retailer customer-based brand equity in the fast-moving consumer goods (FMCG) industry. Brand equity and its conceptual framework consisting of multiple dimensions are drawn from the research done by Aaker (1991). In measuring brand equity from a customer’s knowledge perspective, Keller (1993) developed the concept of customer-based brand equity which focuses on customers’ brand knowledge and how it affects the various brand equity dimensions identified by Aaker (1991). A customer-based brand equity measurement scale was used to assess and evaluate customers’ cognitive and behavioural brand equity. A quantitative cross-sectional online survey was used to collect the data. The results of the GLM ANCOVA procedure indicated that there were significant differences between some retailers’ customer-based brand equity and also within and across the brand equity dimensions that evaluated customers’ knowledge and perceptions of private label brands offered by these retailers. The study further revealed that these differences are mainly centred on perceived quality and brand loyalty. The author made use of regression analysis with overall retailer brand equity as the dependent variable and four brand equity dimensions as independent variables. The study found that private label brands do influence and, to a certain extent, explain retailer customer-based brand equity. The results of the study indicate that private label brands’ loyalty, private label brands’ perceived quality and private label brands’ association significantly influence retailer brand equity. The control variables, ethnic group and household size, had a granular but nonsignificant impact on the dependent variable. Therefore, marketing managers can influence retailer brand association, perceived quality and retailer loyalty by incorporating private label brands in their brand management initiatives and promotional activities.
Customer equity -- South Africa -- Management,Consumer goods,Branding (Marketing)