Consequences to brand image play a crucial role in determining the success of the launch. Manufacturers need to pay particular attention to the price positioning and the quality perception of the national brand with respect to private labels. Firstly, we examine the research background and acknowledge the type of consumers as a control variable. Then, two independent variables price positioning and quality perception are examined. We find evidence for pricing constraints and construct pricing strategies that affect brand image positively and negatively.
Most commonly used are the free-standing inserts (FSIs) existing of newspaper inserts and fliers that come with magazines (Pieters, Wedel & Zhang, 2007).
Supermarkets make regular use of feature advertising to inform consumers about the availability, price and promotions of the assortment. It is known to increase store traffic and sales, though research is scant on short and long run effects (Bodapati & Shrinivasan, 2006).
Retailers advertise their own store brands and unbranded products next to the manufacturers’ brands.
The branded products in feature advertising are able to recall associations with consumers and this stimulates considering alternatives such as the store brands. For discounters, this is a very convenient way to attract attention to their own PLs. However, context effects and promotional effects have indicated that cooperative advertising is not the best option for manufacturers. If a discounter is to promote the NB through feature advertising, consumers associations to both context products and store image are transferred to the associations with the well known brand.
The Dissertation on Symbolism: Branding and Advertising
Introduction: I will mainly focus on symbolic traits with relations to advertising but in order to do so we must first look at the Brand perspective. The symbolic values of branding are very strong and come in on many levels. In order to understand and further investigate this topic, it is important to first define the meaning of symbolic and symbolism. The Oxford dictionary definition for symbol ...
Although the store image of the discounter could improve by doing this, the possible reduction of quality perception can lead to a decrease in brand image of the NB. On the upper side, research of Cotterill and Putsis (2000) examining market share and price setting behaviour, find that when retailers practice feature advertising and display promotion for their PLs, this has an interesting effect on the price equation. Prices of national brands are found to actually be higher, thereby increasing profitability. 4. 4 Chapter Summary
Context effects that influence perception of quality and brand image of the NB exist of the surrounding products, display and store image. If consumer’s expectations are disconfirmed this might lead to a revaluation of the brand. The price competitive format of discounters does not reinforce confidence in merchandise quality. As a result the NB is negatively influenced by products that are perceived to be lower in quality. Displaying NBs and PLs separately could be a beneficial strategy to avoid this. Also, distinctive and innovative packaging can set the NB apart.
Feature advertising incorporates many of the negative context effects for NBs, however it can have positive effects on the price level of NBs. Chapter 5Conclusions 5. 1 Conclusion This paper has investigated the influence of price positioning and quality perception on the brand image of NBs for introduction in the discounter segment. Brand image plays an important role in both determining the price at discounters and signaling quality. Both are intrinsically related to each other and have implications for pricing and marketing strategies at discounters for brand manufacturers.
First of all, Price positioning was discussed. Price serves as an important reference for consumers to evaluate the benefits of the product and a positive price gap between NBs and PLs is considered to capture these benefits best. This limits possibilities for price setting behavior. In particular, the price of the NB should be higher than PLs, but marginally lower than the price charged at traditional retailers. Managers need to understand that conforming to consumer expectations is a large part of maintaining positive brand image.
The Review on Country of origin, consumer’s Perception and Brand Image
Introduction The impact of country of origin (COO) on the consumer’s perception of products has been one of the most widely studied areas of international marketing. Increasing globalization of today’s business has resulted in unprecedented problems for manufacturers, marketers, and consumers (L. Y. Lin & Chen, 2006). The country of origin (where a product is made) touches both ...
