An Empirical Study Of The Dilution Effect Of Private Brand On Retail Brand

In an increasingly competitive market, retail enterprises gradually expand their operation range into production to make a breakthrough in their market achievement. Private brands, which can be considered as the extension of retail brands, emerge as the times demand. A successful private brand can make a contribution towards retail brands, while an unsuccessful one might not only make the retail enterprise suffer losses on manpower and material resources, even also lead to retail brand dilution, namely, cause consumer confusion and reduce their loyalty to the brand. More recently, PB have seen enormous growth in the increasing competitive market. Scholars do a large number of researches on the development of PB. However, There is lack of literatures systematically analyzing the negative impact of private brand on retail brand. In this paper, we will discuss the relationship between private brand and retail brand from consumers' viewpoint and explore the factors of private brand which lead to retail brand dilution effects by empirical research.Firstly, This paper has provided review of PB and brand dilution literature and analyzed the situation of some retail enterprises, then offered a conceptual framework that can be used to understand consumer evaluations of retail brand dilution. Secondly, 270 effective samples have been collected, which oriented to consumers in Guangzhou, Shenzhen and Huizhou who have heard of private brand. At the same time, by using SPSS.11.5, the paper carries out a normal distribution inspection of the original data and does a correlation analysis of each variable, because of a significant correlation between each variable,partial correlation analysis has been done as well. Lastly, the conceptual model is modified according to research result, and advice about how to develop a private brand has been presented.The theoretical and practical value of the paper lies in the following: At first, relationship among private brand, retail brand and consumers have been discussed from the viewpoint of brand-relation and build up a relatin model of the product attribute and non-product attribute of private brand and retail brand. And then, this paper analyze the dilution effect of private brand on retail brand from the angel of brand extension and probe into its influencing factor through empirical study. At last, by using ordinary correlation method and partial correlation method, this study make a preliminary discussion of how product attribute and non-product attribute of private brand dilute retail brand.