by : Hui-Chu Chen
Published by : Journal of Management and Marketing Research (Volume 8 - September, 2011)
ABSTRACT
As a result of the 2008 global economic recession, consumers have less income and have turned to less expensive brands and retail stores. This study examines the relationships of consumer demographics, shopping behavior, and the marketing activities (mix) that influence customer-based brand equity. A sample of 435 hypermarket shoppers is classified by low, middle, and high income segments. Using comparative (ANOVA) and causal (multiple regression) statistical analysis, the findings are similar for low and high income groups and some differences with middle income shoppers.
Keywords: Brand equity, marketing strategy, consumer incomeINTRODUCTION
With the 2008 global recession, corporate profits have declined that has resulted from less consumer spending. Unemployment increased, and many who continued as employed earned less income. Between 2007 and 2009, household income declined 4.1 percent (Brackey, Williams, & Maines, 2010). The consequences has been more price-sensitive consumers who once shopped at upscale retail stores and purchased luxury products, but has switched to discount, low-priced retail stores, e.g., Wal-Mart. During the first year of the recession, Wal-Mart experienced a 9.8 percent increase in profits and a 7.5 percent rise in revenues (Bustillo & Zimmerman, 2008).
During the same time, some families have even discontinued purchasing health insurance (Brackey et al., 2010). As well, “Middle class households reined in spending mainly on discretionary items. On average, from 2007 to 2009, they cut spending 20.1% on alcoholic beverages, 15.2% on clothing, and 9.5% on restaurants and other food away from home. They also spent less on some groceries, cutting back on items such as fresh milk and cream, as well as seafood” (Murray, 2010a, p. A4). The economic recession from December 2007 to June 2009 (18 months) was the longest since World War II and the most severe with a loss of 21 percent of Americans’ net worth (Murray, 2010b). In order to compete, retailers have used very aggressive discounting strategies (Holmes, 2010).
Furthermore, price-sensitivity has had a long-term impact. Retailers are mounting efforts to increase private (store) brands. This strategy is “to take advantage of recession-pinched consumers’ increasing desire to buy cheaper store brands rather than more expensive brand-name products” (Zimmerman, 2009, p. B3). Carrefour, the second largest retailer to Wal-Mart, has experienced the impact of the “recession-pinched” consumers with having high prices and losing market share. Carrefour has refocused its strategy with Carrefour Discount private brands, and changed the “quality for all” slogan to “The positive is back” (Passariello, 2010). . ... . . (baca_selengkapnya)
Artikel lengkap dikompilasi oleh/hubungi :
Kanaidi, SE., M.Si (Penulis, Peneliti, PeBisnis, Trainer dan Dosen Marketing Management).
Kanaidi, SE., M.Si (Penulis, Peneliti, PeBisnis, Trainer dan Dosen Marketing Management).
e-mail ke : kana_ati@yahoo.com atau kanaidi@poltekpos.ac.id
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