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Customer-Based Brand Equity Creation for Online Grocery Stores

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Customer-Based Brand Equity Creation for Online Grocery Stores ECONOMICS DOI: 10.22616/rrd.26.2020.029 CUSTOMER-BASED BRAND EQUITY CREATION FOR ONLINE GROCERY STORES *Miglė Šontaitė-Petkevičienė Vytautas Magnus University, Lithuania *Corresponding author’s email: [email protected] Abstract Given the growing worldwide tendencies of online shopping and increasing popularity of online grocery shopping, building customer-based brand equity for online grocery stores is gaining its popularity among business owners and marketers. Building good customer-based brand equity is considered to be one of the crucial goals for online businesses that leads to successful competition and good customer experience. The aim of this research is to determine customer-based brand equity dimensions for online grocery stores. To reach the aim, this paper adopts analysis and synthesis of scientific and practical literature in the field of customer-based brand equity and empirical research of three stages: field analysis, expert interviews and customer survey. 33 dimensions of customer-based brand equity for online grocery stores grouped in 8 dimension clusters were generated from the field analysis and expert interviews. Generated dimensions were provided for the evaluation during the customer survey. Empirical research proved 31 valid dimensions of customer-based brand equity for online grocery stores evaluated as very relevant, relevant and of average relevance. Main drivers of customer-based brand equity for online grocery stores that proved to be very relevant are: saving time, good price, fresh products, quality of service, and reputation of retail chain behind. Key words: customer-based brand equity, brand equity, branding, customer behaviour, e-commerce, retail. Introduction interpretation of scientific and practical literature. The construct of customer-based brand equity has After the presentation of theoretical insights, research gained a wide interest from theory as well as practice. methodology is outlined, following with empirical Creation of customer-based brand equity has become research findings. Finally, conclusions are stated. one of the most important tendencies in branding and Given the intensified competition in the retail management of business organizations. In addition, industry and booming popularity of online groceries online retailers are coming to realize that they have shopping, a better understanding of customer-based much to learn in this area and that customer-based brand equity is strategically important for online brand equity is particularly appealing in the online grocery stores. Consumer-based brand equity receives shopping. Despite the fact that Lithuania and other EU significant attention from the academic and business countries are living in the world of booming popularity communities (Cifci et al., 2016); however, a review of of online grocery shopping, customer-based brand customer-based brand equity literature demonstrates equity creation for online grocery stores is quite a new that: (a) despite the rich literature on customer-based topic. It is argued that this field lacks knowledge and brand equity, lack of consensus on its conceptualization tools to build value for customers. Consequently, the and operationalization remains; (b) most of the studies question is not whether online grocery stores should focus on a limited number of customer-based brand build customer-based brand equity but how it should equity facets, thus failing to provide a more holistic be done. view of the customer-based brand equity process; (c) This paper focuses on dimensions of customer- there is a scarcity of studies that integrate key consumer based brand equity for online grocery stores. The behavioural outcomes into the customer-based purpose of this research is to answer the question brand equity formation process (Chatzipanagiotou, how to build customer-based brand equity for online Christodoulides, & Veloutsou, 2019). Anselmsson, grocery stores. The object of the research is customer- Burt & Tunca (2017) draw attention to the fact that based brand equity for online grocery stores. The aim retailers are amongst the world’s strongest brands, but of this research is to determine customer-based brand little is known about retailer customer-based brand equity dimensions of online grocery stores. equity. They argue that current operational models The objectives of the paper are as follows: to are too abstract for understanding the uniqueness of analyse theoretical conceptualizations of customer- the retail industry and too simplistic to understand the based brand equity and its creation; to identify interrelationships among the dimensions in the retailer customer-based brand equity dimensions for online brand equity building process. grocery stores by using field analysis and expert Various authors agree that consumer-based brand interviews; to evaluate the relevance to customer- equity provides a number of positive outcomes based brand equity dimensions of online grocery for organizations. Consumer-based brand equity is stores by using customer survey method. essential for driving customer equity, differentiating The paper consists of both theoretical and brands, assessing brand performance and gaining empirical analysis. The research methods used in the competitive advantage in the marketplace (Cifci et paper include logical analysis, generalization and al., 2016). Keller, Aperia & Georgson (2012) argue RESEARCH FOR RURAL DEVELOPMENT 2020, VOLUME 35 199 CUSTOMER-BASED BRAND EQUITY CREATION Miglė Šontaitė-Petkevičienė FOR ONLINE GROCERY STORES that a brand with positive customer-based brand Anselmsson, Burt & Tunca (2017) agree to this equity results in consumers being more accepting of notion stating that there are several examples of a brand extension, less sensitive to price increases and retailer equity scales, but because these scales are withdrawal of advertising support or more willing to based on general models, they currently fail to seek the brand in a new distribution channel. Troiville, capture important dimensions that are unique to the Hair & Cliquet (2019) add that retailer customer- retailing industry. As Troiville, Hair & Cliquet (2019) based brand equity affects customer attitude, loyalty explains, retailers typically build customer-based and word-of-mouth. An example of the importance brand equity by enhancing the product value and the of retailer brand equity is evidenced by the annual experiential value, but still have no effective means to report of Deloitte (2019): retailers have to find ways operationalize and measure it. to distinguish themselves from competitors in order Anselmsson, Burt & Tunca (2017) argue that to succeed. That means having strong customer-based retailer specific dimensions should be better reflected brand equity, offering consumers superior shopping in retailer brand equity measurement models. Troiville, experiences, and being clearly differentiated from Hair & Cliquet (2019) in their research distinguished competitors. Customer-based brand equity appears 7 retailer customer-based brand equity dimensions: to be a major construct and retailers should take access, assortment, atmosphere, convenience, advantage of it because the equity of the retailer employees, quality, value and private brands. While should serve to increase the retailers: a) share of Anselmsson, Burt & Tunca (2017) presented a retailer wallet (by increasing the money spent in its owned brand equity scale, which as they say provides high stores); b) market share (by adding up the current and predictability of core dimensions such as brand trust new customers due to its attraction); c) power against and loyalty and, is comprehensive including both competitors within the marketplace; d) bargaining general brand equity dimensions and retail industry power against manufacturers and suppliers in the specific dimensions. Their scale consists of 17 items vertical channel; e) efficiency (by a cost reduction); grouped to 4 factors: awareness, product quality, and f) revenue and profits (Troiville, Hair, & Cliquet, customer service, pricing policy, retailer trust, physical 2019). store, loyalty. Keller, Aperia & Georgson (2012) define Existing frameworks prove that customer- customer-based brand equity as the differentiated based brand equity frameworks are context specific. effect that brand knowledge has on consumer response Therefore, it is possible to argue that customer-based to the marketing of that brand. A brand is said to have brand equity dimensions of online grocery stores positive customer-based brand equity when consumers might be different. That is why it is possible to state react more favourably to a product and the way it that customer-based brand equity should be treated is marketed when the brand is identified than when in terms of specific industries meaning customer- it is not. However, Troiville, Hair & Cliquet (2019) based brand equity of online grocery stores might argue that a specific conceptual definition adapted to demonstrate specifics compared to other industries. retailers remains to be developed and validated. Keller, Aperia & Georgson (2012) distinguish Materials and Methods two main sources for customer-based brand equity: To achieve the aim of the paper, this research brand awareness and brand image. According to adopts analysis and synthesis of scientific and practical Aaker (1991), customer-based brand equity has four literature in the field of customer-based brand equity dimensions: perceived quality, brand awareness, creation. In
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