Association of Marketing Theory and Practice Proceedings 2017
 

Document Type

Conference Proceeding

Conference Track

Marketing Management/ Strategy/ Branding

Publication Date

2017

Abstract

In recent years, private-label brands have become a well-established part of the global retail environment, often possessing significant market share. This study examines: (1) the proportion or percent (purchase share) of consumers’ monthly purchases for (a) private-label brands of grocery and household products in general and (b) the Great Value (Walmart, U.S.) and Migros (Turkey) private-label brands in particular; (2) the potential effects of gender, income, age, and household size on consumers’ monthly purchase shares of private-label brands; (3) if the effects of these demographic factors have similar associations in the U.S. and Turkey; (4) if consumer awareness, perceived quality, and degree of loyalty for retailer and specific private-label brand differ by consumer purchase behavior (share) of private-label brands, and (5) if these relationships follow similar patterns in the U.S. and Turkey.

To address the research questions, after conducting a series of pretests in both countries, an online survey was conducted among Migros and Great Value shoppers in the two respective countries, producing 203 usable surveys in Turkey and 369 usable surveys in the United States.

The overall results by the distributions of purchase shares for both the Walmart and Migros brands indicate that private-label brands are becoming an important share of grocery and household goods purchases, and both the Migros and Great Value brands in their respective markets have similar levels of acceptance. However, the purchase shares of private labels in general are significantly different in the two countries, where private-label brands in general have higher levels of market penetration and acceptance in the United States than in Turkey.

Concerning the impact of consumer demographics in Turkey and the United States, the study found mixed results. For example, gender and family size did not have any statistically significant effect on consumer purchase behavior for either brand. Age significantly differed in purchase preferences for the Migros private-label brand, but not for the Great Value brand. Also, income significantly differed in purchase preferences for the Great Value brand, but not for the Migros brand. Finally, the results of the study show that consumer perceptions of brand awareness, quality, and degree of loyalty for the Migros and Great Value brands are impacted significantly by purchase behavior, as measured by share of overall grocery and household good purchases.

About the Authors

Musa Pinar (Ph.D., Mississippi State University) is a Professor of Marketing at Valparaiso University. His research interests include service quality, market orientation, gender effect in sales field and tourism, ethical issues in franchising, brand ecosystem, brand orientation, and brand equity in banking, higher education, and sports league branding. He has published in various academic journals and presented papers in national and international conferences and has received several best paper awards at several conferences.

Tulay Girard (Ph.D., Florida Atlantic University) is a Professor of Marketing at Pennsylvania State University, Altoona. Her research focuses on product classes, retailer attributes, perceived risk, Internet security/privacy, logo design and testing, brand equity in banking, higher education, soccer league, and private-label branding. Her publications can be found at www.tulaygirard.com. She received several best paper awards and grants.

Nilay Bıçacıoğlu (PhD candidate, Dokuz Eylül University, Turkey) is a Research Assistant at Dokuz Eylül University, Turkey. Her primary research areas include international and cross-cultural marketing and entrepreneurial and small business marketing. Secondary areas include product and brand management and customer experience management. She has published in various marketing journals such as Journal of Brand Management, Journal of Retailing and Consumer Services and Journal of Marketing Communications.

İlayda İpek (MBA, Middle East Technical University) is a Research Assistant in Marketing and a doctoral candidate at the Faculty of Business of Dokuz Eylül University, Turkey. Her research interests focus on international marketing, brand management, and consumer behavior. Her articles have appeared in Journal of Consumer Behavior, Journal of Retailing and Consumer Services, and Journal of Marketing Communications.

Paul Trapp (Ph.D., University of Illinois) is an Associate Professor of Marketing at Valparaiso University. His research areas are consumer behavior, brand ecosystem, brand management, and branding in higher education. He has published in several academic journals and his papers have been presented at national and international conferences.

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