Answered Essay: Rank each of the following factors in order of most important to least important for selling in the 

Rank each of the following factors in order of most important to least important for selling in the private label market. Include a short explanation for each ranking.

A. Celebrity appeal

B. High % of superior materials

C. Low price

D. Mail-in rebate

E. acceptable S/Q rating

F. Number of independent retail outlets carrying the company’s branded shoes.

Expert Answer


A. High % of superior materials: Superior Materials expands its sales growth. Marketers frequently adopt a “high quality, low price” appeal in advertisements. However, the price–quality inference theory implies that this contextual appeal may not be well-accepted by consumers because it contains two contradictory cues: high quality and low price.

B. Celebrity appeal:
It has become the most useful way for companies to advertise product information to consumers. Words and images are often used to display the product and thus attract the attention of consumers. Among all type of advertising, celebrity endorsement is the marketing method most frequently used by entrepreneurs. Entrepreneurs use celebrity endorsement to increase consumer purchasing motivation. Not only can celebrity endorsements attract consumers to purchase products, but the appeal of statements by celebrities can also affect consumer product image.

C. Low price:
Price fairness refers to consumer’s assessments of whether a seller’s price is reasonable, acceptable or justifiable. In a separate study on factors affecting customer satisfaction, the authors found that “charging a fair price helps to develop customer satisfaction and loyalty.”

Consumers use price as a reference for perceived quality. If you charge a higher price, customers’ expectations will be higher.

So when it comes to customer satisfaction, if you are charging a premium, you will need to deliver a premium service to ensure satisfaction. Anything below that will result in poor customer satisfaction.

Furthermore, if your price is in the medium range, but you offer a premium level of service you can expect high customer satisfaction.

D.Acceptable S/Q rating: If all other competitive factors are equal (price, S/Q rating, advertising, and so on), companies with more models/styles in their product lines will outsell companies offering fewer models.

E.Number of independent retail outlets carrying the company’s branded shoes: Usually, consumers do score a discount. According to Value Retail News, factory stores report discounting their items by 40% on average. That’s not as high as you might imagine, but it’s not bad either. Another study by Consumer Reports, in which testers bought and compared similar items from outlet and regular locations, found that most outlet store goods were 5% to 70% cheaper than retail locations.

F.Mail-in rebate: The mail-in rebate (MIR) is the most common. A MIR entitles the buyer to mail in a coupon, receipt, and barcode in order to receive a cheque for a particular amount, depending on the particular product, time, and often place of purchase.

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