Search results

The evolution of private labels (PL) is a recent trend in the retail industry: many retailers now manage a PL portfolio that includes multiple value propositions, as well as various brand name strategies. Little research has been done, however, on how this combination of PL strategies conditions the results of the retailer that manages them. This study aims to examine the formation of PL brand equity and its effect on store loyalty for retailers with differently tiered PL programs (a “better” program with standard PL vs a full PL quality spectrum with economy, standard and premium PLs) and different PL naming strategies (store-banner name or stand-alone brand name).

A survey (N = 644) was used to test the model in the context of the consumer goods retail industry. Exploratory factor analysis, confirmatory factor analysis and multi-group structural equation modelling techniques were used to assess the proposed model.

The results show differences in the formation of PL loyalty based on whether the retailer has a tiered PL program. In portfolios with economy, standard and premium PLs, PL associations have a stronger effect than PL awareness in the formation of PL loyalty. Portfolios with a standard PL show balanced effects of PL associations and PL awareness on PL loyalty formation. As to the positive effect of PL brand equity on store loyalty, this study also shows a stronger effect of PL brand equity on store loyalty in chains that choose to use their store banner name in their PLs.

Retailers that manage multi-tier PL portfolios (as opposed to those that commercialise a standard PL) can increase loyalty to the PL portfolio significantly by constructing highly differentiated images of their economy, standard and premium PLs to ensure that consumers truly perceive the different value propositions of their PL tiers. As to PL naming strategy, the authors recommend that retailers that use the same retail chain name for one or several of their PLs invest in their corporate reputation to strengthen the brand equity achieved by their PLs and thus increase loyalty to the retail chain. Retailers must perform specific communication and advertising campaigns for PLs with the stand-alone brand name.

Today, any reference to PLs as a whole is overly simplistic, but no research has assessed empirically differences in the influences of a multi-tiered vs a standard PL program on the PL loyalty formation for PL portfolios. Nor has any empirical research incorporated the influence of PL naming strategy on store loyalty. This study fills these gaps, integrating into the same model two significant moderating variables of retailers’ strategy: their PL tier strategy and their PL naming strategy.

The purpose of this paper is to introduce the concept of customer’s value to the retailer (CVR) from a marketing perspective. CVR is a broad concept that has two components: loyalty intentions to the retailer and intentions to try new products or brands that the retailer offers. This study proposes a theoretical model and considers the effect of three sources of CVR in consumer goods retailing: customer’s perceived functional service value, customer’s perceived private label brand (PLB) equity and customer’s perceived relationship value. The effects of the proposed antecedents are applied to two groups of customers: variety-seeking and non-variety-seeking consumers.

The questionnaire surveys were administered to customers of five retail firms with a nationwide presence in Spain (Carrefour, Auchan, Eroski, Mercadona, and El Corte Inglés). A total of 742 valid questionnaires was obtained.

The results show that the key differences between variety seekers (VS) and non-variety seekers (NVS) are imposed by PLB equity, which has a stronger relationship to both components of CVR for VS than for NVS. Relationship value has a stronger relationship to intention to try new products or brands for NVS than for VS. Finally, functional service value has a stronger relationship to intention to try new products or brands for VS than for NVS.

The results obtained for both groups have significant implications for segmentation and management of differentiated marketing strategies based on consumers’ characteristics (variety-seeking tendency).

This study establishes a new concept and measurement of CVR as determined by the customer him/herself. The paper provides a comprehensive analysis of how the relative importance of service, PLBs and relationships affect CVR. Finally, despite the fact that contemporary consumers tend to seek variety, the variety-seeking profile has not been used to date as a moderating variable in studies of CVR.

Although value co-creation has been widely analyzed in digital contexts and various types of services (tourism, healthcare, etc.), it has received less study in the area of retail distribution. This study proposes that trust in the retailer and perceived support can encourage co-creation behavior on various levels: a basic level related to communication of service errors and a moderate-high level related to participation in service innovation. This study also proposes modeling for two different segments according to the participation in a loyalty program and according to the relationship duration.

A survey (N = 644) was used to test the model in the context of the consumer goods retail industry. Confirmatory factor analysis and multigroup structural equation modeling techniques were used to assess the proposed model.

The results show differences in the formation of co-creation behaviors depending on the customers analyzed. To encourage communication of service errors, customers affiliated to the program and customers with the longest customer-firm relationships must trust the distributor. Perceived support is crucial in encouraging feedback on service errors among non-affiliated and new customers. For promoting service innovation, the most significant antecedent is perceived support, followed by trust, independently of whether or not the customer belongs to the loyalty program. Customers with the longest relationship participate in co-innovation motivated equally by trust and perceived support. Customers with shorter relationship duration only participate in co-innovation if they perceived support.

This study contributes to deepening knowledge of co-creation behavior in the field of retail distribution. To date, research in this context has not considered the existence of various levels of co-creation: the basic level related to feedback on service errors and the moderate/high level related to participation in service co-innovation. Nor have studies tested the influence of trust and perceived support on these co-creation behaviors. Further, this study is the first study to integrate two significant variables that moderate retailers' strategy in the same model: membership in a loyalty program and duration of customer-firm relationship.

Store brands have become consolidated in the food market and are currently considered real brands. The purpose of this paper is to determine the factors that contribute to consumers’ identification with store brands, as well as the possible effect of consumers’ identification with store brands on their loyalty to the retail establishment.

The paper achieves its goal by reviewing the academic literature on the topic and proposing and validating a theoretical model for consumer-store brand identification. The theoretical model is validated through an empirical study of the Spanish market for food products using data gathered from individuals responsible for shopping for their homes who claim to have purchased store brand food products at least once. Structural equations modeling is then used to estimate and perform a multigroup analysis for heavy and light buyers of store brands.

The results obtained reveal, first, that consumers’ store brand identification mediates the relationship between their value consciousness and their loyalty to the retail establishment that manages a broad, competitive portfolio of store brands. Second, the study demonstrates the effect of other variables, such as perceived risk associated with the purchase of store brands, their perceived value and consumer satisfaction. Finally, the results show important differences between heavy and light buyers of store brands.

The main limitations of this research derive from the factors conditioning the information. Store brand value was analyzed on an aggregate level, for the Spanish food products market. Future research should include other store brands (e.g. premium store brands), control for store brands with different labels and expand the area of application to new product categories and new countries.

The results obtained have interesting implications for food retailers. These implications concern the management of value store brands in the product portfolio to achieve loyalty to the retail establishment among value-conscious consumers (who constitute the main target of value store brands).

This paper analyzes consumer brand identification in an area that has not been studied to date: store brands. It contributes interesting and very useful findings for retailers who commercialize these brands in their establishments. The line of research on brand identification is quite new in academic research and has arisen due to the importance for companies of constructing close, lasting connections with the consumer.