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

Article

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. https://doi.org/10.1057/s41262-016-0003-7
Article Title

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

ERA Journal ID35933
Article CategoryArticle
Authors
AuthorChimhundu, Ranga
Journal TitleJournal of Brand Management
Journal Citation23 (5), pp. 24-40
Number of Pages17
Year2016
PublisherSpringer
Place of PublicationUnited Kingdom
ISSN1350-231X
1479-1803
Digital Object Identifier (DOI)https://doi.org/10.1057/s41262-016-0003-7
Web Address (URL)http://link.springer.com/article/10.1057%2Fs41262-016-0003-7
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.

Keywordsstore brands; manufacturer brands; grocery retailing; merchandising; power; FMCG
ANZSRC Field of Research 2020350605. Marketing management (incl. strategy and customer relations)
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Byline AffiliationsSchool of Management and Enterprise
Institution of OriginUniversity of Southern Queensland
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