2nd Semester 2016/2017
Cecile Steunebrink
S2703165
c.steunebrink@student.rug.nl
13-07-2017
Research question
What is the effect of store preference on the willingness to
pay for national brands in hard discounters, to what
extent is this moderated by brand loyalty for national
brands and what effect do store characteristics have on
Why this topic?
•
Nowadays, many hard discounters have added national brand to their
assortment.
•
Hard discounters want to differentiate themselves from other hard
discounters and to build a stronger and more sustainable relationship
with their consumers (Deleersnyder et al., 2007).
•
National brands are known as major traffic builders (Ailawadi &
Harlam, 2004).
•
Hard discounters want to move beyond a pure price-based competition
(Deleersnyder et al., 2007).
•
Some researchers have investigated store preference and willingness to
pay, but they didn’t take into account the supermarket type.
•
Bearden (1977); drivers of store preference
Research method
•
Choice-based conjoint with two categories; food and non-food.
Results
Data
•
Choice-based conjoints in My Preference Lab.
•
21 April till 28 April 2017 among Dutch consumers via social media.
•
201 respondents (74,1% females and 25,9% males).
Latent Class Segmentation
Cola category
Detergent category
1. Brand ambassadors (41%)
1. Cherry pickers (33,6%)
2. Drivers (26,6%)
2. Brand addicts (28,5%)
3. Average shoppers (22,2%)
3. Travel avoiders (28,1%)
4. National brand lovers (10,2%)
4. Likers (9,8%)
Conclusion/Discussion
Store preference
• Consumers who prefer assortment, quality of merchandise, atmosphere and friendly salespeople as more important prefer service supermarkets (in line with literature). • Consumers who prefer price as more important prefer hard discounters (in line with
literature).
• No evidence for an effect of price promotions and parking facilities on store preference (not in line with literature). Reverse effect for the location of the supermarket (not in line with literature).
Willingness to pay for national brands in hard discounters
• Importance of price significantly decrease the willingness to pay for national brands in hard discounters (only for the detergent category).
• Store preference for the hard discounter positively influence the willingness to pay for national brands in hard discounters (Coca-Cola, Pepsi and Dubro).
• Brand loyalty has a positive direct effect on the willingness to pay for Coca-Cola, Pepsi and Dubro in hard discounters. Opposite for Dreft.
• Brand loyalty (store preference HD) as a moderator has a positive effect on the
