1 MEASURING STORE BRAND EQUITY FROM THE FORMATIVE PERSPECTIVE: DIFFERENCES BETWEEN HEAVY AND LIGHT STORE BRAND BUYERS Natalia Rubio Benito, Nieves Villaseñor Román & María Jesús Yagüe Guillén 1 Autónoma University of Madrid Currently, there is an open line of research into store brand´s equity. Recent studies show that store brands are building brand equity, but little is known about its formation. First, we examine the role of perceived quality of store brands (SB), perceived value of store brands and attitudinal loyalty towards these brands in the formation of its brand equity. Also, we analyze the moderating role of the propensity to purchase store brands in store brand´s equity formation. The results reveal that the three components investigated contribute to the creation of store brand equity. But, there are significant differences between heavy and light store brand buyers. Loyalty towards SB is a determining component of store brand equity for both client segments, while the perceived quality of SB is significantly more important in the group of light buyers. Important implications for retail management of these brands emerge from the results. Key Words: brand equity, store brand, formative model, multigroup analysis. INTRODUCTION For the most part, the most important studies about brand equity (Aaker, 1991; Keller, 1993) have been undertaken from the perspective of the manufacturers’ brands. However, in the last decade, distributor brands (DB) have enjoyed notable growth, especially for consumer goods (Labeaga, Lado & Martos, 2007). Initially, DB were introduced on the markets as low quality, low priced brands; however, the efforts of retailers—including better presentation— have positioned these brands to offer the best quality-price relationship. Today, customers perceive DB as valuable brands and express their preference for such brands, which has motivated a new line of research about the equity of DB, although such research is still limited (for example: Beristain & Zorrilla, 2011; Cuneo, López & Yagüe, 2012). Distributor brands have a series of differential characteristics with regards to the manufacturers’ brands. These differences affect factors that influence other components and the global value of brand equity, which means that it is essential to redefine the study of DB equity. Having a profound understanding of consumers and identifying those aspects of DB considered most relevant when forming their perceptions about the value these provide is essential for the various commercial chains to position their brands in such a way that it allows 1 Natalia Rubio Benito. (Ph. D., Autónoma University of Madrid –SPAIN-), Associate Professor of Marketing, Department of Finance and Marketing Research, Business Studies, natalia.rubio@uam.es. Nieves Villaseñor Román. (Ph. D., Autónoma University of Madrid –SPAIN-), Professor of Marketing, Department of Finance and Marketing Research, Business Studies, nieves.villasenor@uam.es. Maria Jesús Yagüe Guillén. (Ph. D., Autónoma University of Madrid –SPAIN-), Associate Professor of Marketing, Department of Finance and Marketing Research, Business Studies, maria.yague@uam.es. Contact Address Department of Finance and Marketing Research, Business Studies Faculty, Autónoma University of Madrid, C/ Francisco Tomás y Valiente, 5. Campus of Cantoblanco, 28049 Madrid, Spain. Tel.: +34914973548; Fax: +34914978725.