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The most striking attributes of ‘processing inputs’ is the ability to function in both the business and consumer markets, with tremendous success. To this effect, the literature also suggests hybrid brands seem to function within the business and consumer market; hence they play a part within the retail. Therefore, retailers use different techniques to draw customer attention to their store for more sales and profitability. The following section will evaluate the different branding techniques used by retailers in brand building towards customer attraction.

According to Davies and Ward (2005) branding has now become an important part of business concern in the different product and service sector. Further, Ailawadi and Keller (2004) offers, a retail brand recognises the retailers goods and services and differentiates them competitors. Retailers have continued to play an important part in branding, taking the role of point of contact between brands and consumers. The branding strategies used in retailing offers a different range of components and tools to draw customer attention in making purchase.

Manufacturers and consumers offer value to brands through partnership, where the brand plays an important role to the retailer and consumer. Perusing the

branding literature in the early days of industrialisation indicates the lack of focus on the reseller as part of the branding process. Hence, an incomplete picture of branding is presented within the academic and practical viewpoint. As brands reach the retail, the brand manager will not have control of the brand due to overwhelming influence of price incentives from competitors. Companies are now functioning as marketers to the consumer, end user and the business sector. In business marketing the reseller is regarded as customer to the manufacturer not the final consumer. Therefore the reseller is strategic to manufacturers brand success as the reseller will use all the tools available to ensure purchase, loyalty and profit.

Brand building is an important aspect to consider by both the manufacturer and retailer (Wileman and Jary, 1997). Like the manufacturer, developing a strong brand is the ultimate goal of a retailer. Branding at this level is expected to generate consumer loyalty and preference while differentiating itself among competitors in the retail chain. Conversely, the similarities between the manufacturer and retail branding techniques vary. Corstjens and Corstjens (1995) offered retail brands face a major challenge of creating a satisfactory balance between various segments. Hence, market segmentation is far easier in the manufacturer sector than the retailers. However, the retailer has advantages in terms of segmentation like, direct customer contact, point of purchase control, and access to information on shopping behaviour over the manufacturer (Wileman and Jary, 1997).

In addition, Wileman and Jary (1997) offered that within the retailer category, there is a market share competition across a wide price range in their area of coverage. Further, to gain competitive advantage in retail, price cannot be ignored.

According to Corstjens and Corstjens (1995) price is the most important factor to consider in retail as ignoring the price difference can be detrimental to competition. Retailers are far more conscious than manufacturers in the way a positive customer’s perception to price in the market.

Moreover, store location is an important factor to consider in the retail brand success (Berman et al. 1995; Corstjens and Corstjens, 1995;Ailawadi and Keller, 2004). Further, Corstjens and Corstjens (1995) asserts selecting retail location is based on distance and convenience the customer is willing to take. Thus, the retailer target is centred on the coverage area of the customers to allow switching from competing stores. This explains the motive behind acquiring other retailers by the big retailers due to the stores physical coverage and connection with customers. Manufacturers on the other hand attain other brands to capture the customer mind space.

Similarly, Ailawadi and Keller (2004) pointed out that unlike product brands, retailer brands are multi-sensory where rich consumer experience is often relied on to build equity. Ailawadi and Keller also point to various brand image developments that retailers attempt to build like, merchandising, product assortments, credit and pricing policy and emphasising quality of service through unique associations. Wileman and Jary (1997) added attributes of retail brand are prone to change as to manufacture brand. They further suggest the retail brand to have multiple attributes unlike the manufacturer brands that relates with products and services concurrently in the retail. The views expressed by Corstjens and Corstjens and Wileman and Jary suggests developing a strong and flexible branding strategy may pose a challenge to retailers who, considering the dynamic business nature are involved with the everyday business of dealing with goods and services.

An effective means of brand differentiation in retailing is to have the retailer own brands which will create differential advantage (Nandan and Dickinson, 1994;

Corstjens and Corstjens, 1995; Ailawadi and Keller, 2004). This strategy allows the retailer to offer different merchandise exclusive to the store. Corstjens and Corstjens (1995) offered two different types of store labels, the first is type-I own label used to gain control of the supply chain by the retailer and retailers can influence negotiations when dealing with manufacturers. The generic brands which are more like commodity based labels aimed to satisfy basic needs of customers. They are usually made as ‘look alike’ to the manufacturer brands. The

second type of own label consist of brands that pull customers to the store by retailers. These brands which are made to compete with the manufacturer brands through building customer loyalty. This type of own label combines the merchandise offered with the store into the same unit. Example of such retailers is Next, Gap, Brooks, Talbots and Body shop (Ailawadi and Keller, 2004).

Branding efforts by retailers relies on different brand identity elements like, packaging, name, symbol and advertising. The literature has offered several attributes to influence retailer image in the area of merchandise (assortment, brand, quality, price), store (location, environment, name and atmosphere), service (personnel, quality and levels) and promotion (advertising, public relations, in-store) (Mazursky and Jacoby, 1986;Bloemer and De Ruyter, 1998;Ailawadi and Keller, 2004). To understand the role of retailers to the branding process with their links to manufacturers, this review will look at relevant literature to shed light on retail branding.

2.4.1 Merchandising Influence

In the study of store image attributes to examine consumer behaviour in retail, Thang and Tan (2003) conducted a survey study of six department stores in Singapore where they identified several attributes influencing consumer store choice. Merchandising appeared as the most influencing factor, since store visit involves purchase of different items, extensive display of merchandise offers a wider consumer choice while reducing switch to other stores. Similarly, they found accessibility to be the next important factor. They pointed out that due to the stores location to several facilities located within walking distance, customers find it easy to reach the stores. Likewise, they assert the next influencing factor to be reputation with preference for reputable stores in which consumers link their purchase value and quality to store reputation. They further highlighted in-store service stressing the point that stores that offer good service always encourage repeat purchase and leave a good perception.

This is supported by Bitner et al. (1994) and Reynolds and Beatty (2000) who show the influence of store services on consumer purchase behaviour. Store

atmosphere is found to offer a significant factor to influence consumer choice.

Their results which supports that of Donovan and Rossiter (1982) and Sherman et al. (1997), suggest a pleasant atmosphere will encourage store visit which will lead to preference and encourage a relaxed shopping mood. Promotion is the last influencing factor. Their findings indicate that store promotions improve store awareness, build relationship with customers and increase visit. This helps in attracting customers with incentives to help build affiliation.

2.4.2 Store Promotions

Price signifies the consumer expenditure in monetary terms that leads to a purchase of goods and services. It has been suggested by Brown (1969) where he interviewed several respondents to investigate the quality levels and service offerings as indicators of price perception in supermarket in-store shelf pricing in five different cities. Their findings indicate non-price indicators such as quality levels and service offering do influence consumer price perceptions. As a result of this consumers may not have a true perception of the real price offered by the retailers. This finding is supported by Dickson and Sawyer (1990) who prove that consumers are diverse in their price and price promotions perceptions in stores.

However, Monroe and Lee (1999) demonstrate that a brands’ general price perception is developed by consumers the expensive nature of brands can also be determined as consumers locate brands in stores.

The price format in retail is also found to influence store choice and shopping behaviour. In their study to understand shopping behaviour relationship by drawing data from two large supermarkets, the everyday low price (EDLP) and promotion pricing store (HILO) in the U.S., Bell and Lattin (1998) found preference for EDLP from large basket shoppers while HILO stores are preferred more by the small basket shoppers. They further illustrate that large basket shoppers enjoy pricing across the board of several product categories; hence they do not enjoy price deals of individual products. Small basket shoppers lower the basket price by taking advantage of price variations in the store. The findings of Ho et al. (1998) supports this who show that HILO stores have average price with

lower purchase quantity and offers more strategies to encourage store visits.

Whereas, in the EDLP store shopping frequency decreases while high revenue is generated per unit. They also found there is no dominant format for pricing among the two types of stores.

Retail price promotions have been shown to encourage customers to switch store.

Kumar and Leone (1988) and Walters (1991) investigate the impact of retail price promotions on patterns of consumer purchase with their competing retailers. They found that price promotion has the highest influence on brand substitute; this is followed by displays and featuring. The results further show retail price promotions and brand promotions leads to brand switch by consumers within the store. High market share brands get higher sales against low share competitors in which they added can assist manufacturers and retailers in building an effective price promotion strategy especially at the point of purchase. They however posit that consumers will unlikely monitor weekly promotions in stores so as to gain good bargains.

Similarly, Bucklin and Lattin (1992) found retail promotions do not necessarily influence a customer in making store choice decisions, although they indirectly influence the purchase. Consumers being random shoppers buy from different stores. Their study shows that consumers may be influenced to make purchase in an unplanned store as against their regular store. Therefore, stores with pleasing atmosphere might have higher promotions effect due to longer stay, which will lead to promotions awareness and unplanned purchase.