private label imitation of a national brand: implications ...1).pdf · counterfeit products are...
TRANSCRIPT
Anocha Aribarg, University of Michigan
(Co-authors: Neeraj Arora, University of Wisconsin; Ty Henderson,
University of Texas and Youngju Kim, Korea University)
Based on paper published in
Private Label Imitation of a National Brand:
Implications for Consumer Choice and Law
Brand Imitation ≠ Counterfieting
Counterfeit products are fake replicas of the real product.
These replicas would bear the exact same brand name as the
real product.
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Legal Aspects of Brand Imitation
Brand Confusion
Brand source and affiliation
Survey-based measurement
Initial Interest Confusion
The brand captures the consumer’s early attention
Helps gain crucial credibility during initial stages of search
No well established method to measure it
5
Research Questions
From the legal standpoint …
Can Initial Interest Confusion be assessed?
Can we help develop better metrics to quantify “harm”?
From the theoretical standpoint, how does brand imitation
impact the consumer choice process?
Effects on brand consideration and brand preference?
Spill-over effects on other brands not being imitated?
Important moderating factors?
6
Our Methodology
We use a combination of discrete choice experiments and
statistical modeling
A hierarchical Bayes consider-then-choose model
Separates brand consideration from brand preference
Allows for heterogeneity across individuals
Helps quantify shifts in brand share
Choice experiments were conducted among Usamp online
panel’s participants.
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Pilot Study
Consumers use brand name, label design, and package shape
to judge similarity (Hupman and Zaichkowsky 1995; Miceli and
Pieters 2009; Ward et. al. 1986; Warlop and Alba 2004)
Focus on:
hand sanitizer (Purell)
bottled water (FIJI)
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Example: Attributes for Hand Sanitizer
Name Label Design Package Shape
High
Similarity
Low
Similarity
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Attributes and Levels: Hand Sanitizer
Attribute Study 1A Levels
Brand Purell
Germ-X
Private label
-Cleanse (Low similarity)
-Purify (High similarity)
Aloe Original
With Aloe
Price: Top-tier brand (Purell) $4.25
$4.00
$3.75
Middle-tier brand (germ-X) $3.75
$3.50
$3.25
Private label $3.25
$3.00
$2.75 11
Conjoint Choice Experiments
Twelve choice tasks
Across tasks, the brands were shown in the same position but aloe and
price levels were varied.
Low Similarity Condition High Similarity Condition
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Attributes and Levels: Bottled Water
Attribute Study 1B Levels
Brand FIJI
Aquafina
Private label
-Splash (Low similarity)
-MAUI (High similarity)
Low Plastic Regular bottle
Low plastic bottle
Price: Top-tier brand $1.39
$1.29
$1.19
Middle-tier brand (Aquafina) $1.19
$1.09
$0.99
Private label $0.99
$0.89
$0.79 15
How Consumers View the Category
How do you view these three brands?
Each brand in its own category
Two brands in one category and one brand in the other category
All three brands in one category
For the participants that checked the second option (two brands in one category), we asked how they categorized all three possible combinations of brand pairs. Which two brands are in one category?
FIJI & Aquafina
FIJI & MAUI
Aquafina & MAUI
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Study 2 & 3: Moderating Factors
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Study 2 Study 3
Low
Similarity
High
Similarity
Absence of the Imitated Brand PL Offered by Well-known Retailer
Net Effect on Share: Well-known Retailer
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Some evidence of “reactance” towards well-known retailers.
Summary of Results
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Brand imitation positively affects brand consideration (initial
interest confusion) and preference for the imitating private
label.
Brand imitation changes how consumers view products in the
category.
May harm other national brands not being imitated.
Harm quantified by share shift and share equalizing price cut
Brand imitation can backfire when its is carried on by a
reputable retailer.
Legal and Managerial Implications
Legal Implications: Beyond “brand confusion”– a process level understanding of brand
consideration and brand preference
Our proposed approach helps demonstrate the presence of “initial
interest confusion”: The legal system does not quite know how to
quantify it
We quantify harm in terms of (i) decline in brand premium the
imitated brand can charge (or WTP) and (ii) brand share loss for the
imitated brand
Brand managers: Brand imitation can adversely affect all national brands, even those
that are not being imitated.
Brand imitation may not be a good strategy for a reputable retail
brand
Using “Compare to” is a fair and honest way to inform consumers
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