The benefits of manufacturers brand to retailers

Abstract

Purpose – The purpose of this paper is to investigate how manufacturers' brands benefit retailers and how these benefits affect retailer evaluations of the brand. Design/methodology/approach – The researchers develop a conceptual framework, from a literature review and qualitative interviews, which outlines the benefits of manufacturers' brands for retailers. A series of hypotheses tests the effects of these brand benefits on retailer brand attitudes. Data are collected using a survey of supermarket category buyers and analysed with structural equation modelling in order to validate this framework. Findings – Manufacturers' brands deliver four benefits to retailers: financial, manufacturer support, meeting customers' expectations and brand equity. Financial benefits and customer expectations have a stronger effect on retailer satisfaction with the brand compared to manufacturer support and brand equity. Retailer satisfaction with the brand is an antecedent to the retailer assessment of brand performance as well as trust and commitment of the brand. An alternative model shows that brand equity influences retailer commitment to the brand and that financial benefits affect retailer performance assessment of the brand. Practical implications – Manufacturers should think of their brands as channel resources when dealing with retail buyers, and need to consider how to best utilise these four brand benefits to encourage channel support. Originality/value – This study proposes a conceptual model and measures the influence of manufacturer brand benefits on longer term retailer attitudes towards the brand, which research has not previously addressed.