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Creation of consumer loyalty and trust in the retailer through store brands: The moderating effect of choice of store brand name

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  • Rubio, Natalia
  • Villaseñor, Nieves
  • Yagüe, María Jesús

Abstract

Within the current economic context, store brands play an important role in differentiation strategies based on assortment and positioning in terms of distributor prices. To begin with, this study identifies three determining aspects of retail loyalty and trust: satisfaction with price levels, the perceived image of the assortment and loyalty to the store brands (SB). Secondly, this study proposes a theoretical relational model among the aforementioned aspects. Finally, this study analyzes the moderating role that the strategy of choosing SB name (umbrella brand label vs. brands different from the label brand) plays in the relationship between loyalty to SB and loyalty to and trust in the retailer. By including this moderating variable, we seek to contribute to current academic research and to provide insights into the importance that SB strategy (label vs. own name) has for the effect of loyalty to SB on the relative results of the retail company. Our research results show that making the umbrella SB name the same as the label brand name increases the positive effect of customer loyalty to SB on loyalty to the retailer, but not the effect of trust on this loyalty compared to chains that use SB names different from those of the label. These results have important implications for management.

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  • Rubio, Natalia & Villaseñor, Nieves & Yagüe, María Jesús, 2017. "Creation of consumer loyalty and trust in the retailer through store brands: The moderating effect of choice of store brand name," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 358-368.
    • Handle: RePEc:eee:joreco:v:34:y:2017:i:c:p:358-368
    DOI: 10.1016/j.jretconser.2016.07.014
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    6. Sandra Horvat & Tanja Komarac & Durdana Ozretic Dosen, 2021. "Perceived Private Label Authenticity: A Two-Study Analysis," Tržište/Market, Faculty of Economics and Business, University of Zagreb, vol. 33(SI), pages 47-66.
    7. Molinillo, Sebastian & Navarro-García, Antonio & Anaya-Sánchez, Rafael & Japutra, Arnold, 2020. "The impact of affective and cognitive app experiences on loyalty towards retailers," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).
    8. Albors-Garrigos, Jose, 2020. "Barriers and enablers for innovation in the retail sector: Co-innovating with the customer. A case study in grocery retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    9. Shakir Goraya, M. Awais & Zhu, Jing & Akram, Muhammad Shakaib & Shareef, Mahmud Akhter & Malik, Aneela & Bhatti, Zeeshan Ahmed, 2022. "The impact of channel integration on consumers’ channel preferences: Do showrooming and webrooming behaviors matter?," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
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    11. Madhurima Deb, 2021. "The impact of scepticism in cause-related marketing campaigns on audiences’ behavioural intentions with religiosity as a moderator," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 18(3), pages 387-401, September.
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    13. Soomro, Yasir Ali, 2019. "Antecedents of brand loyalty in the fashion industry of Pakistan: Moderating effect of Individual-level collectivist values," MPRA Paper 95356, University Library of Munich, Germany.
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    15. Konuk, Faruk Anıl, 2018. "The role of store image, perceived quality, trust and perceived value in predicting consumers’ purchase intentions towards organic private label food," Journal of Retailing and Consumer Services, Elsevier, vol. 43(C), pages 304-310.
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