National brands versus store brands

: a study on perceived value, brand equity, and willingness to pay

Abstract

Global instability due to the COVID-19 pandemic and ongoing international conflicts, along with high inflation rates, have impacted prices and led to increased price sensitivity among consumers. Store brands now account for 37% of European grocery sales, posing a challenge to national brands. Thus, this dissertation investigates the consumers’ willingness to pay for national versus store brands and the mediating role of perceived value and brand equity. In specific, two product categories were explored, namely chocolate and toilet paper, which possess more hedonic and utilitarian attributes, respectively. Therefore, a 2x4 factorial design with two independent variables, one with two levels (hedonic, utilitarian) and one with four levels (National Brand, Continente, Pingo Doce, Lidl), was set up. The stimuli were applied to an online survey and randomly presented to 289 respondents. Findings suggest no significant difference in willingness to pay between national and store brands. Although national brands have a higher perceived value, store brands have developed brand equity over time. However, both variables, perceived value and brand equity, do not mediate the relationship between brand type and willingness to pay. Furthermore, product type moderates two of the three above-described relationships. This thesis contributes to filling the gap in the literature regarding the competition between national and store brands by having a deeper look at the factors under investigation and providing a current perspective on the topic. From a managerial viewpoint, this research helps to identify consumer preferences, refine brand positioning, and create focused marketing strategies for greater profitability.

Date of Award	26 Jun 2023
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Paulo Romeiro (Supervisor)