Factors influencing consumer behaviour towards store brand: a meta-analysis

Xiaojun Fan

Fudan University and Nanjing University of Finance and Economics

Yi Qian

Northwestern University

Pei Huang

Fudan University

Introduction

The creation and maintenance of a store brand, also called a private label or private brand, is one of the most important activities for supermarket retailers. This is because the store brand is the only brand that is available exclusively at the retailer’s store (Hansen et al. 2006). A well-developed store brand not only contributes directly to retailer profitability, but also has positive indirect effects, such as better bargaining power with the manufacturer (Mills 1995) and building store loyalty (Corstjens & Lal 2000). Store brands are one of the most interesting phenomena in North American and European markets. According to the Private Label Manufacturers Association (PLMA), nearly one in four products bought in US supermarkets last year was a store brand, and market share rose to all-time record highs of 18.7% dollar share and 23.7% unit share. Throughout Europe, store brands have increased to record levels. They account for at least 40% of all products sold in Switzerland (53%), Spain (42%), the UK (47%), Slovakia (44%) and Germany (41%), and one in every three products sold in Belgium (38%) and France (35%) (PLMA 2010).