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Lourenço, Carlos J.S. & Gijsbrechts, Els (2013). The impact of national brand introductions on hard-discounter image and share-of-wallet. International Journal of Research in Marketing. 30 (4), 368-382
Export Reference (IEEE)
C. J. Lourenço and E. Gijsbrechts,  "The impact of national brand introductions on hard-discounter image and share-of-wallet", in Int. Journal of Research in Marketing, vol. 30, no. 4, pp. 368-382, 2013
Export BibTeX
@article{lourenço2013_1716041325999,
	author = "Lourenço, Carlos J.S. and Gijsbrechts, Els",
	title = "The impact of national brand introductions on hard-discounter image and share-of-wallet",
	journal = "International Journal of Research in Marketing",
	year = "2013",
	volume = "30",
	number = "4",
	doi = "10.1016/j.ijresmar.2013.04.005",
	pages = "368-382",
	url = "http://www.sciencedirect.com/science/article/pii/S0167811613000736"
}
Export RIS
TY  - JOUR
TI  - The impact of national brand introductions on hard-discounter image and share-of-wallet
T2  - International Journal of Research in Marketing
VL  - 30
IS  - 4
AU  - Lourenço, Carlos J.S.
AU  - Gijsbrechts, Els
PY  - 2013
SP  - 368-382
SN  - 0167-8116
DO  - 10.1016/j.ijresmar.2013.04.005
UR  - http://www.sciencedirect.com/science/article/pii/S0167811613000736
AB  - Hard-discounters (HDs) such as Aldi and Lidl are increasingly introducing national brands (NBs) into their private label (PL) dominated assortments. While there is evidence that this enhances sales in the categories where such NBs are added, little is known about how it affects consumers' overall perceptions of the HD and consequently its share of the customers' wallet. Using a unique data set that combines longitudinal informa- tion on a HD's perceptions, with that chain's assortment composition, we investigate the impact of NB intro- ductions on the chain's overall value and assortment image, and spending share. We show that introductions of NBs, in particular category leaders, may significantly contribute to a more favorable perception of the HD store. For positive value-image effects to materialize, HDs must offer these NBs at low-enough prices to maintain a reasonable price gap with the current private label offer. For the NB entry to enhance the HD's assortment perception, it must come with a sufficiently deep product line. However, there are limits to this approach. Introductions gradually lose effect as the share of NBs at the HD goes up. More importantly, ill-selected NB additions may backfire on the HD. Listing NBs that are not category-leaders, at prices too far above its private labels, deteriorates the HD's favorable value positioning — cutting into its core competitive advantage, and leading to notable reductions in share-of-wallet. We discuss the academic and managerial implications of these findings.
ER  -