From Store Brands to Store Brandscapes:

Purpose: This research investigates role of store brands as a time and money saving heuristic in the context of an omnipresent store brand hierarchy. Drawing on the work of Tversky and Kahneman (1982) it proposes that the store brand hierarchy is characterised by many of the traits of frequently used heuristics employed by grocery shoppers. Design/methodology/approach: Based on Chaiken’s (1980) model of information processing and Stigler’s (1961) perspective on the economics of information search, the study deductively establishes a model of store brand proneness to reveal the role of store brands as a time and money saving heuristic. The model is tested on a sample of 535 US households using structural equation modelling and subsequent multigroup analysis based on two sub-samples of households experiencing high financial pressure but who differ in terms of time pressure. Findings: The findings provide strong support for store brands as a time and money saving heuristic and as a substitute for price search among households experiencing financial and time pressures. Practical implications: Retailers need to be aware that extensions of the store brand portfolio beyond the traditional tiered hierarchy, risks undermining what has emerged to be a valuable heuristic used by certain shoppers. The hierarchy represents a risk to individual retailers in that as a heuristic, store brands have become part of a familiar generalised market wide store brandscape. Consequently, retailers are recommended to revaluate the precise role of store brands and the store brand hierarchy within their loyalty building strategies. In-store, store brands time and money saving characteristics may promote the subsitution of these products for branded competitors. Originality/value: This study extends our understanding of the role of store brands in the marketplace by going beyond their traditional conceptualisation as a competitive device used by retailers, to instead view them as a decision-making tool used by consumers. It also deepens our understanding of the boundary between rational search activities and the transition to the use of frequently flawed heuristics within the shopping process.