Customers' Attitudes toward Supermarket Brands in Glasgow

Pages: 9 (1871 words) Published: June 6, 2014

Module Code: PM504-3T

Class Group: 13

Module Title: Research Project

Assessment Title: Literature Review

Assignment Title: Customers’ attitudes toward Supermarket brands in Glasgow

Tutor Name: Hartog Simon

Student ID: 2110948

Date of Submission: May 29, 2014

Customers’ attitudes toward Supermarket brands in Glasgow

Introduction

In an increasingly competitive environment, companies would better to be customer oriented. After all, the underpinning of the marketing concept is that identification and satisfaction of customer needs leads to the improvement of customer retention (Sivadas and Baker, 2000; Kremer and Viot, 2012). However, In order to narrow the scope, this literature review will focus on the reasons (risks related to products and brand positioning) affecting customers’ attitude, which impacts toward store brands. However, the strategies of improving attitudes of consumers will not be presented. Current studies have mainly focused on internal factors, for example management model and brand image (Anselmsson and Bondesson, 2012; Rao and Monroe, 1989; Kremer and Viot, 2012; Martínez and Montaner, 2008). Nevertheless, very few studies have commented on the impact of external factors to store brands such as consumers’ attitudes and consumers’ patronize frequency (Zielke and Dobbelstein, 2007). For the purpose of examining, the consequences have been found from customers’ attitudes of store brands in previous literatures in order to provide a framework for the following research. Firstly this literature review will examine the factors influence customers’ attitude. Secondly, analyzing how these factors impact customers’ attitude. Lastly the consequence of customers’ attitudes on store brands will be discussed.

The factors impact consumers’ attitude

The attitudes of consumers toward store brands would be impacted by various factors such as risks related to products and brand positioning (Semeijn et al., 2004). Dunn et al. (1986) and Semeijn et al. (2004) claim that the attitude of consumers will be influenced by the risks related to a product group. Frequently, financial, functional and social risks are distinguished. To be specific, financial risk could be defined as the potential financial loss resulting from a negative commodity purchasing. Namely, customers would not be willing to buy the expensive products relative to consumers’ income. This buying behavior may cause economic loss for them. For example, the economic loss will be higher for commodities like desk lamp than for bread (Zielke and Dobbelstein, 2007; Semeijn et al., 2004).

Besides, functional risks could result from a low product quality. These risks are related to the importance of product function. For instance, there could be a certain risk that the shower gel will not clean the body. Consumers would concern the quality of merchandise and become hesitate before they buy the product. Therefore, functional risks with commodity will influence consumers’ attitude toward brands (Dunn et al., 1986; Martínez and Montaner, 2008).

Thirdly, Zielke and Dobbelstein (2007) suggest that social risks could represent a possible loss of image or reputation resulting from the purchase or use of certain products. These risks mainly exist with products that are consumed in public or provided to visitors. Social risks will impact the attitude on customers’ choice directly due to the reputation of products. These notions provided by the authors can be generalized towards consumers in Glasgow. However the assumptions about risks in different product groups are only based on theoretical arguments. Thus in the following research the risks of distinct products will be examined to verify whether these risks exist.

Another element is the positioning of store brand, regarding cost and quality. Huang et al. (2004) assert that a big price gap on new brands compared to the leading national brands influencing the disposition to...

References: ACNielsen (2005). A review of growth trends around the world. Retrieved May 15th 2014 from: www2.acnielsen.com/reports/documents
Anselmsson, J
Dunn, M.G., Murphy, P.E., and Skelly, G.U. (1986). Research note: The influence of perceived risk on brand preference for supermarket products. Journal of Retailing, 13(2), 18-24.
Herbig, P. and Milewicz, J. (1995). The relationship of reputation and credibility to brand success. Journal of Consumer Marketing, 12(4), 5-10.
Huang, J.H., Lee, B.C. and Ho, S.H. (2004). Consumer attitude toward gray market goods. International Marketing Review, 21(6), 598-614.
Kremer, F. and Viot, C. (2012). How store brands build retailer brand image. International Journal of Retail and Distribution Management, 40(7), 528-543.
Larkin, Y. (2013). Brand perception, cash flow stability, and financial policy.Journal of Financial Economics, 110(1), 232-253.
Loudon, D.L. and Della B.A.J. (1993). Consumer behavior: Concepts and applications. New York: McGraw-Hill.
Martínez, E., and Montaner, T. (2008). Characterisation of Spanish store brand consumers. International Journal of Retail and Distribution Management, 36(6), 477-493.
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Rao, A.R. and Monroe, K.B. (1989). The effect of price, brand name, and store name on buyers ' perceptions of product quality: an integrative review. Journal of Marketing Research, 66(6), 351-357.
Semeijn, J., Van Riel, A.C., and Ambrosini, A.B. (2004). Consumer evaluations of store brands: effects of store image and product attributes. Journal of Retailing and Consumer Services, 11(4), 247-258.
Sivadas, E. and Baker, P.J.L. (2000). An examination of the relationship between service quality, customer satisfaction, and store loyalty. International Journal of Retail and Distribution Management, 28(2), 73-82.
Zielke, S., and Dobbelstein, T. (2007). Customers ' willingness to purchase new store brands. Journal of Product and Brand Management, 16(2), 112-121.
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