Marketing store brands and manufacturer brands: role of referent and expert power in merchandising decisions

Chimhundu, Ranga (2016) Marketing store brands and manufacturer brands: role of referent and expert power in merchandising decisions. Journal of Brand Management, 23 (5). pp. 24-40. ISSN 1350-231X

Abstract

The purpose of this article is to explore the use of power in the merchandising of store brands and manufacturer brands in a highly concentrated fast-moving consumer goods (FMCG) retail environment where grocery retailers wield
phenomenal power over manufacturers. The study employed in-depth interviews and in-store category observation in five product categories and triangulated the results of the two study methods and the five categories. While grocery retail chains own the point of sale and market their own store brands alongside competing manufacturer brands, despite having the balance of power over manufacturers in a highly concentrated grocery retail environment,it is not necessarily coercive power that drives merchandising practice for store and manufacturer brands. Indeed, referent and expert bases of power play a key role. Consistent with rational business judgement,what is best for the consumer and the business is what largely gets factored into merchandising policy. Little research has specifically scrutinised the merchandising patterns of store and manufacturer brands in a highly concentrated FMCG retail environment using specific sources of power as a theoretical base. This article further suggests a relevant theoretical framework for store and manufacturer brand merchandising practice in a highly concentrated FMCG retail environment.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Permanent restricted access to Published version, in accordance with the copyright policy of the publisher.
Faculty / Department / School: Current - Faculty of Business, Education, Law and Arts - School of Management and Enterprise
Date Deposited: 22 Feb 2017 00:52
Last Modified: 22 Feb 2017 00:52
Uncontrolled Keywords: store brands; manufacturer brands; grocery retailing; merchandising; power; FMCG
Fields of Research : 15 Commerce, Management, Tourism and Services > 1505 Marketing > 150503 Marketing Management (incl. Strategy and Customer Relations)
Socio-Economic Objective: E Expanding Knowledge > 97 Expanding Knowledge > 970115 Expanding Knowledge in Commerce, Management, Tourism and Services
Identification Number or DOI: 10.1057/s41262-016-0003-7
URI: http://eprints.usq.edu.au/id/eprint/30379

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