Springer Proceedings in Business and Economics Juan Carlos Gázquez-Abad Francisco J. Martínez-López Irene Esteban-Millat Juan Antonio Mondéjar-Jiménez Editors National Brands and Private Labels in Retailing First International Symposium NB&PL, Barcelona, June 2014 Springer Proceedings in Business and Economics For furthervolumes: http://www.springer.com/series/11960 ThiSisaFMBlankPage Juan Carlos Ga´zquez-Abad (cid:129) FranciscoJ.Mart´ınez-Lo´pez (cid:129) IreneEsteban-Millat (cid:129) Juan Antonio Monde´jar-Jime´nez Editors National Brands and Private Labels in Retailing First International Symposium NB&PL, Barcelona, June 2014 Editors JuanCarlosGa´zquez-Abad FranciscoJ.Mart´ınez-Lo´pez DepartmentofEconomyandBusiness DepartmentBusinessAdministration UniversityofAlmeria UniversityofGranadaBusinessSchool FacultyofBusinessandEconomics Granada,Spain Almeria,Spain and MarketingGroup OpenUniversityofCatalonia Barcelona,Spain IreneEsteban-Millat JuanAntonioMonde´jar-Jime´nez EstudiosdeEconom´ıayEmpresa FacultaddeCienciasSociales OpenUniversityofCatalonia UniversidadCastillalaMancha Barcelona,Spain Cuenca,Spain ISSN2198-7246 ISSN2198-7254(electronic) ISBN978-3-319-07193-0 ISBN978-3-319-07194-7(eBook) DOI10.1007/978-3-319-07194-7 SpringerChamHeidelbergNewYorkDordrechtLondon LibraryofCongressControlNumber:2014942262 ©SpringerInternationalPublishingSwitzerland2014 Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpart of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation,broadcasting,reproductiononmicrofilmsorinanyotherphysicalway,andtransmissionor informationstorageandretrieval,electronicadaptation,computersoftware,orbysimilarordissimilar methodologynowknownorhereafterdeveloped.Exemptedfromthislegalreservationarebriefexcerpts inconnectionwithreviewsorscholarlyanalysisormaterialsuppliedspecificallyforthepurposeofbeing enteredandexecutedonacomputersystem,forexclusiveusebythepurchaserofthework.Duplication ofthispublicationorpartsthereofispermittedonlyundertheprovisionsoftheCopyrightLawofthe Publisher’s location, in its current version, and permission for use must always be obtained from Springer.PermissionsforusemaybeobtainedthroughRightsLinkattheCopyrightClearanceCenter. ViolationsareliabletoprosecutionundertherespectiveCopyrightLaw. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publicationdoesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexempt fromtherelevantprotectivelawsandregulationsandthereforefreeforgeneraluse. While the advice and information in this book are believed to be true and accurate at the date of publication,neithertheauthorsnortheeditorsnorthepublishercanacceptanylegalresponsibilityfor anyerrorsoromissionsthatmaybemade.Thepublishermakesnowarranty,expressorimplied,with respecttothematerialcontainedherein. Printedonacid-freepaper SpringerispartofSpringerScience+BusinessMedia(www.springer.com) Preface Theglobaleconomiccrisishasstronglymodifiedconsumers’purchasingbehaviour. In particular, consumers’ brand preferences for National Brands (NBs) and Private Labels (PLs) have dramatically changed. Thus, the global economic slump has acceleratedthegrowthofPLsatthesametimeastheunderlyinglong-termshiftin power moves frommanufacturers toretailers.Inthepast, PL sales spiked duringa recessionbutquicklyreturnedtonormallevelsatthefirstsignofanupturn.However, thistimePLsremainstatic. PLs in the consumer packaged goods industry have experienced an intense worldwide surge in availability and market share in recent years. In this regard, PLs have been introduced to over 90 % of all consumer packaged goods categories. PLs already account for 56.9 % of the total consumer packaged goods (CPG) consumption in the UK (49.2 % value share), 49.6 % in Germany (37.7%valueshare),49.5%inSpain(40.4%valueshare),and22.9%intheUSA (18.5%valueshare). There are many reasons for retailers to increase the presence of their brands. Three aspects can be highlighted: (1) higher retail margins on PLs, (2) leverage with national brands and (3) higher consumer store loyalty. There is significant evidence to support the first two reasons; the fact that PLs generate high margins for retailers has been acknowledged in both business and academic press. In the academic context, previous literature reports average gross retailer PL margins of up to 30 % and even higher. Also, a retailer’s PL percentage margins are high on average,althoughsuchmarginsvaryconsiderablyacrosscategories.Manufacturer and retailer power, along with category concentration, are category-level aspects influencingaretailer’smarginintermsofbothPLsandNBs. The ‘new landscape’ in which NBs and PLs compete offers new exciting opportunities for researchers to discover different aspects underlying this new framework.ItiswiththisgoalinmindthatthisFirstInternational Symposiumon AdvancesinNationalBrands&PrivateLabelsinRetailing(IS-NB&PL2014)has been launched and organized. Although there are some conferences including sessionsrelatedtothetopic,thissymposiumisbelievedtobethefirstinternational v vi Preface forum to present and discuss original, rigorous and significant contributions specificallyonNBandPLissues. Each paper submitted to NB&PL 2014 has gone through a stringent peer review process by members of the Programme Committee, which comprises 36internationallyrenownedresearchersfrom13countries. A total of 18 papers have been accepted, and they address diverse areas of application such as assortment decisions, dual-brand manufacturers, positioning, branding, consumer preferences, online context, economiccrisis,review oflitera- ture, PL share, PL trends and PL innovation, among others. A wide variety of theoreticalandmethodologicalapproacheshavebeenused. We believe that this first international symposium has achieved the aim set initially:toencourage,promoteandpublishhigh-qualitycontributionsonnational brands and private labels that can aid retailers and manufacturers in dealing with a wide range of issues. Nonetheless, we hope that this is only the first of many futureeditionswhichwillhelptostrengthenthispromisingresearchfield. Finally, we wish to acknowledge the support of our sponsors: the Ramo´n Areces Foundation (with backing from El Corte Ingle´s) and the Universitat ObertadeCatalunya.WewouldalsoliketothankIRIWorldwide(Spanishoffice) for helping us put together the panels of professionals to discuss several topics at the conference. Last but not least, we would like to thank all the contributing authors, members of the Programme Committee and the rest of the Organizing Committeefortheirhighlyvaluableworkinenablingthesuccessofthisfirstedition of NB&PL; it would not have been possible without you all. Thank you for your generouscontribution. Almer´ıa,Spain JuanCarlosGa´zquez-Abad Granada,Spain FranciscoJ.Mart´ınez-Lo´pez Barcelona,Spain IreneEsteban-Millat Cuenca,Spain JuanA.Monde´jar-Jime´nez Organization Conference Chair JuanCarlosGa´zquez-Abad—UniversityofAlmer´ıa(Spain) Program Chair Francisco J. Mart´ınez-Lo´pez—University of Granada / Open University of Catalonia(Spain) Organizing Committee RafaelAnayaSa´nchez,UniversityofMalaga(Spain) FernandoDelaPrieta,UniversityofSalamanca(Spain) IreneEsteban-Millat,UniversitatObertadeCatalunya(Spain) Rube´nHuertasGarc´ıa,UniversityofBarcelona(Spain) Roc´ıoAguilarIllescas,UniversityofMalaga(Spain) Mar´ıaPujolJover,UniversitatObertadeCatalunya(Spain) Sebastia´nMolinilloJime´nez,UniversityofMalaga,Spain JuanAntonioMonde´jarJime´nez,UniversityofCastillalaMancha(Spain) ElisabetRuizDotras,UniversitatObertadeCatalunya(Spain) FranciscoRejo´n-Guardia,UniversityofGranada(Spain) vii viii Organization Programme Committee NawelAmrouche,LongIslandUniversity(USA) Jose´ J.Beristain,UniversityoftheBasqueCountry(Spain) EnriqueBigne´,UniversityofValencia(Spain) JamesBrown,WestVirginiaUniversity(USA) IoannisE.Chaniotakis,UniversityoftheAegean(Greece) Liwen(Brandon)Chen,CityUniversityofHongKong(China) AlexanderChernev,NorthwesternUniversity(USA) ChanChoi,RutgersBusinessSchool(USA) Ge´rardCliquet,Universite´ deRennes1(France) GiuseppeColangelo,CatholicUniversityofMilan(Italy) RonaldW.Cotterill,UniversityofConnecticut(USA) BarbaraDeleersnyder,TilburgUniversity(Netherlands) CharlesGengler,CityUniversityofNewYork(USA) J.TomasGomez-Arias,SaintMary’sCollegeofCalifornia(USA) OscarGonza´lez-Benito,UniversityofSalamanca(Spain) CsillaHorva´th,RadboudUniversity(TheNetherlands) EugeneJones,TheOhioStateUniversity(USA) LienLamey,KatholiekeUniversiteitLeuven(Belgium) MercedesMartos-Partal,UniversityofSalamanca(Spain) DirkMorschett,UniversityofFribourg(Switzerland) MartinNatter,GoetheUniversityFrankfurtamMain(Germany) MagdalenaNenycz-Thiel,UniversityofSouthAustralia(Australia) MichaelPepe,SienaCollege(USA) WilliamP.Putsis,UniversityofNorthCarolinaatChapelHill(USA) NataliaRubio-Benito,AutonomousUniversityofMadrid(Spain) FionaScottMorton,YaleUniversity(USA) RandallShannon,MahidolUniversity(Thailand) IanClarkSinapuelas,SanFranciscoStateUniversity(USA) JayI.Sinha,TempleUniversity(USA) YaronTimmor,ArisonSchoolofBusiness(Israel) RodolfoVa´zquez-Casielles,UniversityofOviedo(Spain) GianfrancoWalsh,FriedrichSchillerUniversityofJena(Germany) Mar´ıaJesu´sYagu¨eGuille´n,AutonomousUniversityofMadrid(Spain) JieZhang,UniversityofMaryland(USA) CristinaZiliani,UniversityofParma(Italy) PilarZorrilla,UniversityoftheBasqueCountry(Spain) Contents PartI StrategicDecisions EstimationofProductCategorySales’Responsiveness toAssortmentSize. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 JuanCarlosGa´zquez-AbadandFranciscoJ.Mart´ınez-Lo´pez TheCompetitionEffectsofLookalikePrivateLabelProducts. . . . . . . . 17 PaulW.DobsonandLiZhou HowAssortmentCompositionAffectsConsumers’Intentions toBuyPL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 JuanCarlosGa´zquez-AbadandFranciscoJ.Mart´ınez-Lo´pez PartII Branding ToBrand,NottoBrandorBoth?ConsequencesforDual-Brand Firms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 NicolasOchoaandJulioCervin˜o DefensiveStrategyAgainstaPrivateLabel:BuildingBrandEquity. . . 53 S.ChanChoi AllHailtheBrand!WhyBrandGravitasReallyDoesMatter. . . . . . . . 61 JustinBenekeandEmmaTrappler SpanishFoodPrivateLabelsDivergentPositioningandCommon Drivers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 RafaelMaran˜o´nandMar´ıaPuelles ix