Natascha Loebnitz, Stephan Zielke and Klaus G. Grunert
This study aims to investigate the impact of social risk and inter-tier brand competition across traditional retailers and discounters on consumers' purchase intentions in the UK.
Abstract
Purpose
This study aims to investigate the impact of social risk and inter-tier brand competition across traditional retailers and discounters on consumers' purchase intentions in the UK.
Design/methodology/approach
The authors conduct a 2 (social risk) × 3 (brand type) × 2 (retailer type) between-subjects design (n = 309; UK) experiment employing a Qualtrics online panel in the UK.
Findings
The study shows that while premium private labels (PPLs) are on par with national brands, discounter's PPLs outperform mainstream retailer's PPLs. Furthermore, consumers appear to purchase standard private labels and PPLs for themselves when shopping at a discounter but turn to national brands when shopping for socially risky situations.
Research limitations/implications
While Tesco's premium (Tesco Finest*) and standard private label (Tesco Everyday Value) explicitly make reference to the retailer's name, for Lidl's premium (Deluxe) and standard private label (e.g. Milbona), the discounter's name is not visible. This is something this study did not control for.
Practical implications
Given that Lidl has opened its first US store in 2017 with ambitious expansion plans, our findings provide in particular practical guidelines for how to promote PPLs in countries where the discounter landscape is less saturated than in Germany.
Originality/value
This study provides insights into the understanding of the influence of social risk on purchasing intentions of premium private labels vs standard private labels vs national brands offered by mainstream retailers or discounters in the UK.
Details
Keywords
Natascha Loebnitz, Stephan Zielke and Klaus G. Grunert
The purpose of this paper is to investigate situational factors (i.e. social risk) and negative emotions (e.g. shame and guilt) on consumers’ purchase intentions for premium…
Abstract
Purpose
The purpose of this paper is to investigate situational factors (i.e. social risk) and negative emotions (e.g. shame and guilt) on consumers’ purchase intentions for premium private labels (PPLs) vs national brands (NBs) at discounter (Lidl) in the UK, and the underlying process of this effect.
Design/methodology/approach
The authors conduct a 2 (social risk) × 2 (brand type) between-subjects design experiment employing a Qualtrics online panel in the UK.
Findings
The study shows that NBs still have the edge over PPLs when consumers shop for socially risky situations, which is due to higher product expectations of NBs, and a moderated mediation shows that this effect is more pronounced among consumers that feel negative emotions when shopping at Lidl.
Research limitations/implications
This study included leading NBs, which differ in terms of price compared to selected PPLs. Researchers should include pricing information as an additional factor and investigate Lidl’s options to deal with negative emotions in the online setting.
Practical implications
The results help brand managers to understand consumer reactions toward PPLs vs NBs at the discounter in UK.
Originality/value
NBs have recently joint rather than fight discounters’ product assortment, this study contributes to understand the moderating impact of negative emotions and product expectations as the driving force in consumers’ purchasing decision.