<p>This study concerns retail brands in the food retail industry and focuses on premium products. The research is investigating how ICA can best use premium products to increase their profitability. The study is thus based on their brand ICA Selection and investigates three sub purposes concerning the customers’ perception of the products, their purchase behavior and their willingness to pay a price premium.</p><p> </p><p>To investigate, theory concerning brand resources was utilized, involving both brand equity and brand management. To measure brand equity, the authors adapted a customer mind set and utilized Aaker’s framework and the specific industry developments made by Anselmsson, Johansson and Persson. Accordingly, this theory is based on five brand equity attributes: perceived quality, brand associations, loyalty, awareness and uniqueness. These attributes were thereafter developed to explain food premium products. The brand management theory used was Kapferer’s brand management strategies, in order to assess ICA’s strategic advantages and disadvantages.</p><p> </p><p>The research was quantitative and the authors utilized a visit self completion questionnaire, in order to describe and investigate the purpose. The questionnaire was handed out according to a systematic sampling method, to customers at the 4 different concept ICA stores in Umeå.</p><p> </p><p>Based on the findings, the authors concluded that in order to increase the profitability of ICAs food premium products, the following strategies should be considered. First, the customer awareness of ICA Selection must be increased and the customers must be educated about the benefits of the product. Moreover, the premium brand should aim to provide value for money, high intrinsic product quality (i.e. taste, ingredients etc) and an improved store image. These factors will help defend the price premium.  Furthermore, to attract buyers, the brand has to have a high enough brand status and a sufficiently attractive and functional packaging. This research has therefore concluded how to efficiently allocate the resources and obtain an increased customer satisfaction. This may in turn increase the profitability of ICA Selection. However, it is of course important to also take into account the external environment, such as the recession and competition, when deciding on the brand strategy.</p>

This study concerns retail brands in the food retail industry and focuses on premium products. The research is investigating how ICA can best use premium products to increase their profitability. The study is thus based on their brand ICA Selection and investigates three sub purposes concerning the customers’ perception of the products, their purchase behavior and their willingness to pay a price premium.   To investigate, theory concerning brand resources was utilized, involving both brand equity and brand management. To measure brand equity, the authors adapted a customer mind set and utilized Aaker’s framework and the specific industry developments made by Anselmsson, Johansson and Persson. Accordingly, this theory is based on five brand equity attributes: perceived quality, brand associations, loyalty, awareness and uniqueness. These attributes were thereafter developed to explain food premium products. The brand management theory used was Kapferer’s brand management strategies, in order to assess ICA’s strategic advantages and disadvantages.   The research was quantitative and the authors utilized a visit self completion questionnaire, in order to describe and investigate the purpose. The questionnaire was handed out according to a systematic sampling method, to customers at the 4 different concept ICA stores in Umeå.   Based on the findings, the authors concluded that in order to increase the profitability of ICAs food premium products, the following strategies should be considered. First, the customer awareness of ICA Selection must be increased and the customers must be educated about the benefits of the product. Moreover, the premium brand should aim to provide value for money, high intrinsic product quality (i.e. taste, ingredients etc) and an improved store image. These factors will help defend the price premium.  Furthermore, to attract buyers, the brand has to have a high enough brand status and a sufficiently attractive and functional packaging. This research has therefore concluded how to efficiently allocate the resources and obtain an increased customer satisfaction. This may in turn increase the profitability of ICA Selection. However, it is of course important to also take into account the external environment, such as the recession and competition, when deciding on the brand strategy.

This study is an in-depth investigation of the factors that affect store brand purchases. It aims to help both retailers and manufacturers predict store brand purchases through an improved understanding of the effects of three latent variables: customer satisfaction and loyalty with the store; which is expressed through word-of-mouth; and trust in store brands. An additional aim is to explore variations in the level of store brand adoption and the inter-relationships between the selected constructs. Data was collected through a telephone survey of those responsible for household grocery shopping, and who shop at the nine leading grocery retailers in Greece. A total of 904 respondents completed the questionnaire based upon a quota of 100 respondents for each of the nine retailers. Data were analyzed through chi-square, analysis of variance and partial least square. The proposed model was tested by partial least square path modeling, which related the latent variables to the dependent manifest variable: store brand purchases. The findings provide empirical support that store brand purchases are positively influenced by the consumers’ perceived level of trust in store brands. The consumer decision-making process for store brands is complex and establishing customer satisfaction and loyalty with the store does not appear to influence store brand purchases or the level of trust in the retailer’s store brands in the specific context under study. Consequently the most appropriate way to influence store brand purchases in the Greek market is through increasing in the level of trust in the retailer’s store brands. It is suggested that retailers should therefore invest in trust building strategies for their own store brands and try to capitalize on their brand equity by using a family brand policy. Theoretical and managerial implications of the findings are discussed and opportunities for further research are suggested.