When manufacturer brands did not support retailer brand images

Abstract

PurposeTo further improve the branding strategies between single-brand-retailers and multi-brand-retailers, the paper investigates the influence of multiple manufacturer brand images on retailer brand image. It considers the moderating role of the number of offered manufacturer brands.Design/methodology/approachThe research is conducted in the automotive retail context. Based on an online survey (383 respondents), a Partial-Least Squares Modeling, estimated using SmartPLS 3 and a classic partial least squares structural equation modeling (PLS-SEM) algorithm, is used to validate the hypotheses.FindingsThe results reveal that manufacturer brands did not influence the retailer's brand image in all cases since it is only influenced by the manufacturer brand when the retailer offers only one manufacturer brand.Practical implicationsFor retailers offering only one manufacturer brand, the most extensive possible adoption of the corporate identity (CI) specifications prescribed by the manufacturer brands is the prerequisite for a positive image effect. Retailers offering more than one manufacturer brand should create their image based on the retailer's identity. In this context, it is essential to position the retailer brand independently in the market.Originality/valueThis is the first study focuses on retailers with a small or limited number of offered manufacturer brands to answer the question of whether the number of provided manufacturer brands moderates the impact of manufacturer brand images on the retailer's brand image.