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Promotion as an element of private brand development (CROSBI ID 564734)

Prilog sa skupa u zborniku | izvorni znanstveni rad | međunarodna recenzija

Horvat, Sandra ; Gregurec, Iva ; Vranešević, Tihomir Promotion as an element of private brand development // International Journal of Management Cases, Special Issue, CIRCLE Conference 2009, Dornbirn Austria / Davies, Barry J. ; Vignali, Claudio ; Vranešević, Tihomir (ur.). 2009. str. 468-474

Podaci o odgovornosti

Horvat, Sandra ; Gregurec, Iva ; Vranešević, Tihomir

engleski

Promotion as an element of private brand development

In recent years, the significance of private brands has grown to such an extent that it can not be ignored. Private brands market share in certain countries in Europe is exceeding 40 per cent and is continuously increasing. Although, retailers have started to develop private brands in order to offer customers a cheaper alternative compared to leading manufacturers’ brands, over time their strategy has changed. They have realized that private brands can be a good mean of differentiation and thereby a source of competitive advantage, so they started to focus on improving their quality. However, despite the increase in objective quality, research on customer perception and blind tests have shown that consumers still perceive private brands as inferior compared to manufacturer brands. Those results are not surprising, taking into account the amounts manufacturers are spending on development of all aspects of their brands in order to influence customer perception. Retailers have, in recent years, also started to use this strategy in order to develop strong image of their private brands. Investments in promotion can have positive effects on customer expectations linked to performance and quality assessment of private brands. Nevertheless, it is important to focus private brand promotion on value as an element of product evaluation rather than solely on quality or price because customers tend to have more positive attitude towards private brands when assessing brand value. Positioning and promotion of private brands solely as the cheapest alternative for customers will not result in sustainable competitive advantage for their owners.

private brand; promotion

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Podaci o prilogu

468-474.

2009.

objavljeno

Podaci o matičnoj publikaciji

International Journal of Management Cases, Special Issue, CIRCLE Conference 2009, Dornbirn Austria

Davies, Barry J. ; Vignali, Claudio ; Vranešević, Tihomir

Podaci o skupu

6th International Conference for Consumer Bahaviour and Retailing Research

predavanje

16.04.2009-18.04.2009

Dornbirn, Austrija

Povezanost rada

Ekonomija