Supermarket Pricing Model Impact on Private Label Brands Versus National Brands among Millennial Consumers
Marketing Management/ Strategy/ Branding
National Brands (NBs) and private label brands (PLBs) play a vital role in manufacturing and retailing strategies. Market share growth of PLBs over the past few decades continues to level the playing field; altering go-to-market strategies for both NB and PLB manufacturers and retailers. A quantitative examination compared purchase data between NB versus PLB using panel data from 100,000 households. Consumer metrics; trip conversion, buyer conversion, and dollar loyalty served as dependent variables interacting with a multivariate grouping of branding (NB vs. PLB), grocery pricing model (Hi-Lo vs. EDLP vs. Hybrid) and age-cohort (Millennial vs. Generation X). A MANOVA provided findings to support significance levels <.001 in buyer conversion and dollar loyalty scores, when comparing NB vs. PLB across grocery pricing model. Results support previous studies aligning purchase propensity for NB at Hi-Lo retailers while PLB has higher mean scores for buyer conversion and dollar loyalty at EDLP retailers.
Copyright Statement / License for Reuse
Digital Commons@Georgia Southern License
Hendrix, Jeffrey and Caraballo, Vinny, "Supermarket Pricing Model Impact on Private Label Brands Versus National Brands among Millennial Consumers" (2017). Association of Marketing Theory and Practice Proceedings 2017. 32.
About the Authors
Dr. Jeffrey Hendrix received a Doctorate of Business Administration (DBA) from Capella University in 2016. Jeffrey has led multiple business units responsible for all transactions between manufacturer supplier and the largest retailer in the world, Walmart. Serving as Senior Director or Vice President Team Leader for Hostess Cakes, Snyder’s-Lance, Pfizer Consumer Healthcare and Ebro Riviana Foods, Jeffrey has experience in go to market strategies across several consumer product goods (CPG), from both a domestic and international perspective. Additionally, Jeffrey has held responsibilities for selling and marketing National Brand and Private Label Branded sales for the past 25 years.
Dr. Vinny Caraballo, received his Doctor of International Business Administration (DIBA) from Nova Southeastern University. He is currently the CEO of the Global Targeting advisory firm and the lead faculty member for Capella University’s Doctor of Business Administration (DBA) specialization in Marketing; and Global Operations and Supply Chain Management. He has published 3 books and multiple journal article in innovation and marketing. He has led and trained multicultural teams on several continents in innovation management, leadership, and sales development for some of the world’s premiere technology and professional services firms. Additionally, he has developed market expansion and brand building plans for numerous consumer oriented firms.