The use of private labels to influence the customer-based brand equity of South African FMCG retailers
Date
2015
Authors
van der Westhuizen, Jasper Petrus
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
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.
Description
MBA 2015
Keywords
Customer equity -- South Africa -- Management,Consumer goods,Branding (Marketing)