Pursuing the Value-Conscious Consumer: Store Brands versus National Brand Promotions:

TLDR: In this article, the authors identify psychographic and demographic traits that potentially drive usage of store brands and national brand promotions and develop a framework and structural equation model to study the association of these traits with store brand and National Brand promotion usage.

Abstract: The objective of this article is to determine whether national brand promotions and store brands attract the same value-conscious consumers, which would aggravate channel conflict between manufacturers and retailers. The authors identify psychographic and demographic traits that potentially drive usage of store brands and national brand promotions. They then develop a framework and structural equation model to study the association of these traits with store brand and national brand promotion usage. The authors find that though demographics do not influence these behaviors directly, they have significant associations with psychographic characteristics and therefore are useful for market targeting. Most important, usage of store brands and usage of promotions, particularly out-of-store promotions, are associated with different psychographics. Store brand use correlates mainly with traits related to economic benefits and costs, whereas the use of out-of-store promotions is associated mainly with tr...