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Discount venture brands: Self-congruity and perceived value-for-money?

Lookup NU author(s): Dr Yulia Dzenkovska

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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY-NC-ND).

Abstract

Grocery retailers have begun to target price conscious consumers with a new type of budget brand, called discount venture brands. These brands are exclusive to the retailer but, unlike traditional private-label brands, do not display retailer branding at all. Sharing the same price point as economy private-label brands, the aim of discount venture brands is to attract customers with an overall look-and-feel that is not explicitly premium, yet is more attractive than that of conventional budget brands. Drawing on the self-congruity literature, the authors explore two questions: (1) whether customers perceive discount venture brands to offer greater value-for-money than conventional budget brands; and (2) whether such perceptions translate to customer impressions about the retailer brand? Results from a scenario-based experiment involving 505 participants suggest that, in comparison with conventional budget brands, discount venture brands may be less conducive to engendering favorable value-for-money perceptions; in short, discount venture brands may be less effective than conventional budget brands. This finding can be explained with a concept called self-congruity. Overall, we show that self-congruity acts as an indirect-only mediator of the path between the type of a brand and value-for-money perceptions of the brand. Particular findings are that self-congruity has a positive effect on value-for-money perceptions associated with conventional budget brands, discount venture brands, and the retailers selling those brands. However, for consumers with a preference for brands with a budget price point, self-congruity appears to be higher for conventional budget brands than discount venture brands; and this difference in self-congruity is more pronounced when shopping for others than when shopping for oneself.

Publication metadata

Author(s): Baker T, Chari S, Daryanto A, Dzenkovska J, Ifie K, Lukas B, Walsh G

Publication type: Article

Publication status: Published

Journal: Journal of Business Research

Year: 2020

Volume: 116

Pages: 412-419

Print publication date: 01/08/2020

Online publication date: 30/07/2019

Acceptance date: 19/07/2019

Date deposited: 10/12/2019

ISSN (print): 0148-2963

Publisher: Elsevier

URL: https://doi.org/10.1016/j.jbusres.2019.07.026

DOI: 10.1016/j.jbusres.2019.07.026

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