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Relationship marketing management: Its importance in private label extension

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  • Miquel-Romero, Maria José
  • Caplliure-Giner, Eva María
  • Adame-Sánchez, Consolación
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    Abstract

    Relationship marketing aims to generate long-term profitable relationships between partners. In the context of the convenience goods market, the present study considers private labels in traditional categories as a tool to develop effective relationships. The main contribution of the study is the use of the relationship approach to explain private label loyalty and the success of store brand extension strategies. Drawing upon a sample of 434 individual and using EQS software, this study shows that customer experience, satisfaction, trust, and commitment to private labels play an important role in customer loyalty toward private labels in convenience goods, increasing consumers' propensity to buy private labels in new categories such as durable goods. Generating trust and commitment, which ultimately result in loyalty, is therefore a strategic goal and a source of long-term profitability for retailers.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Business Research.

    Volume (Year): 67 (2014)
    Issue (Month): 5 ()
    Pages: 667-672

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    Handle: RePEc:eee:jbrese:v:67:y:2014:i:5:p:667-672

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    Web page: http://www.elsevier.com/locate/jbusres

    Related research

    Keywords: Relationship marketing; Private label; Trust; Commitment; Experience; Loyalty;

    References

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    1. Dawes, John & Nenycz-Thiel, Magda, 2013. "Analyzing the intensity of private label competition across retailers," Journal of Business Research, Elsevier, vol. 66(1), pages 60-66.
    2. Hampson, Daniel P. & McGoldrick, Peter J., 2013. "A typology of adaptive shopping patterns in recession," Journal of Business Research, Elsevier, vol. 66(7), pages 831-838.
    3. Robert L. Steiner, 2004. "The Nature and Benefits of National Brand/Private Label Competition," Review of Industrial Organization, Springer, vol. 24(2), pages 105-127, 03.
    4. Steenkamp, J. & Dekimpe, M.G., 1997. "The increasing power of store brands: Building loyalty and market share," Open Access publications from Tilburg University urn:nbn:nl:ui:12-358835, Tilburg University.
    5. Narasimhan, Chakravarthi & Wilcox, Ronald T, 1998. "Private Labels and the Channel Relationship: A Cross-Category Analysis," The Journal of Business, University of Chicago Press, vol. 71(4), pages 573-600, October.
    6. Alba, Joseph W & Hutchinson, J Wesley, 1987. " Dimensions of Consumer Expertise," Journal of Consumer Research, University of Chicago Press, vol. 13(4), pages 411-54, March.
    7. Sanjay K. Dhar & Stephen J. Hoch, 1997. "Why Store Brand Penetration Varies by Retailer," Marketing Science, INFORMS, vol. 16(3), pages 208-227.
    8. Bustos-Reyes, César Augusto & González-Benito, Óscar, 2008. "Store and store format loyalty measures based on budget allocation," Journal of Business Research, Elsevier, vol. 61(9), pages 1015-1025, September.
    9. Martínez, Eva & Montaner, Teresa & Pina, José M., 2009. "Brand extension feedback: The role of advertising," Journal of Business Research, Elsevier, vol. 62(3), pages 305-313, March.
    10. Coupey, Eloise & Irwin, Julie R & Payne, John W, 1998. " Product Category Familiarity and Preference Construction," Journal of Consumer Research, University of Chicago Press, vol. 24(4), pages 459-68, March.
    11. Bao, Yongchuan & Bao, Yeqing & Sheng, Shibin, 2011. "Motivating purchase of private brands: Effects of store image, product signatureness, and quality variation," Journal of Business Research, Elsevier, vol. 64(2), pages 220-226, February.
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