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A Cross Validation of Consumer-Based Brand Equity (CBBE) with Private Labels in Spain

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Abstract

In recent years a number of Consumer-Based Brand Equity (CBBE) models and measurement scales have been introduced in the branding literature. However, examinations of brand equity in Private Labels (PL) are rather limited. This study aims to compare the validity of the two prominent CBBE models those introduced by Yoo and Donthu (2001) and Nam, Ekinci, and Whyatt (2011). In order to test the models and make this comparison, the study collected data from 236 respondents who rated private labels in Spain. A list of 30 different fashion and sportswear PL was introduced to respondents. These brands do not make any reference to the retail store in which they are sold. Research findings suggest that the extended CBBE model introduced by Nam et al. (2011) and Ciftci, Ekinci, and Whyatt (2014) is more reliable and valid than Yoo and Donthu’s model for assessing PL. Theoretical contributions and managerial implications are discussed.

Keywords

  • Consumer-based brand equity
  • Customer satisfaction
  • Service quality
  • Private labels

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Correspondence to Sebastián Molinillo .

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Appendices

Appendix 1: Scales and factor loadings (Yoo & Donthu, 2001)

Scales   Measurement Factor loadings
Perceived quality PQ1 The likely quality of this brand is extremely high 0.68
PQ2 The likelihood that this brand would be functional is very high 0.92
Brand awareness BA1 I can recognize this brand among other fashion or sportswear brands 0.74
BA2 I am aware of this brand 0.84
BA3 Some characteristics of this brand come to my mind quickly 0.58
Brand loyalty BL1 I consider myself to be loyal to this brand 0.75
BL2 This brand would be my first choice 0.84
BL3 I will not buy from other fashion or sportswear brands if this brand is available in the store 0.86
Overall brand equity BE1 It makes sense to buy this brand instead of any other, even if they are the same 0.80
BE2 Even if another fashion or sportswear brand has the same features as this brand, I would prefer to buy this brand 0.93
BE3 If another fashion or sportswear brand is not different from this brand in any way, it seems smarter to purchase this brand 0.86

Appendix 2: Scales and factor loadings (Nam et al., 2011; Ciftci et al., 2014)

Scales   Measurement Factor loadings
Brand awareness BA1 I can recognize this brand among other fashion or sportswear brands 0.76
BA2 I am aware of this brand 0.78
BA3 Some characteristics of this brand come to my mind quickly 0.63
Physical quality PHQ1 This brand offers products of very good quality features 0.79
PHQ2 This brand offers products of consistent quality 0.72
PHQ3 This brand offers very durable products 0.76
PHQ4 This brand offers very reliable products 0.82
Staff behaviour SB1 Employees who are selling this brand are competent in doing their jobs 0.83
SB2 Employees who are selling this brand are helpful 0.95
SB3 Employees who are selling this brand are friendly 0.90
Brand identification BI2 If a story in the media criticizes this brand, I would feel embarrassed 0.95
BI3 When someone criticizes this brand’s products, it feels like a personal insult 0.88
Lifestyle congruence LC1 This brand’s products reflect my personal lifestyle 0.85
LC2 This brand’s products are totally in line with my lifestyle 0.92
LC3 This brand’s products support my lifestyle 0.93
Ideal self-congruence IC1 The typical customer of this brand has an image similar to how I like to see myself 0.82
IC2 This brand has an image similar to how I like to see myself 0.94
IC3 This brand has an image which represents how I would like others to see me 0.81
Consumer satisfaction CS2 Worse than I expected – Better than I expected 0.68
CS3 Worse than similar brands I purchase – Better than other brands I purchase 0.71
CS4 Terrible – Delighted 0.81
Brand loyalty BLN1 I will recommend this brand to someone who seeks my advice 0.92
BLN2 Next time I will purchase a product from this brand again 0.79

Appendix 3: Results of the hypotheses testing (Yoo & Donthu, 2001)

  Relationships SPC t-value
H1 Perceived quality → Overall brand equity 0.20 3.00**
H2 Brand awareness → Overall brand equity 0.08 1.14
H3 Brand loyalty → Overall brand equity 0.69 9.66***
Variance explained (R2)  
Overall brand equity 0.71

** p < 0.01, *** p < 0.001

Appendix 4: Results of the hypotheses testing (Nam et al., 2011; Ciftci et al., 2014)

  Relationships SPC t-value
H1 Physical quality → Consumer satisfaction 0.50 5.05***
H2 Staff behaviour → Consumer satisfaction 0.05 0.69
H3 Brand identification → Consumer satisfaction 0.14 1.91*
H4 Lifestyle congruence → Consumer satisfaction −0.06 −0.60
H5 Ideal self-congruence → Consumer satisfaction 0.04 0.36
H6 Brand awareness → Consumer satisfaction 0.05 0.55
H6 Consumer satisfaction → Brand loyalty 0.23 2.90**
H7a Physical quality → Brand loyalty 0.32 3.61***
H7b Staff behaviour → Brand loyalty −0.03 −0.53
H7c Brand Identification → Brand loyalty −0.07 −1.21
H7d Lifestyle congruence → Brand loyalty 0.09 1.10
H7e Ideal self-congruence → Brand loyalty 0.05 0.69
H7f Brand awareness → Brand loyalty 0.41 4.83***
Variance explained (R2)  
Consumer satisfaction 0.33
Brand loyalty 0.62

Note SPC Standardized path coefficient; * p < 0.05, ** p < 0.01, *** p < 0.001

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Molinillo, S., Ekinci, Y., Japutra, A. (2015). A Cross Validation of Consumer-Based Brand Equity (CBBE) with Private Labels in Spain. In: Martínez-López, F., Gázquez-Abad, J., Sethuraman, R. (eds) Advances in National Brand and Private Label Marketing. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-20182-5_12

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