IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v18y2011i4p259-270.html
   My bibliography  Save this article

Private label share, branding strategy and store loyalty

Author

Listed:
  • Ngobo, Paul-Valentin

Abstract

When retailers increase the share of private labels in their product assortment, how does this affect customer store loyalty? This is the main question we address in this article. We develop a model of the relationship between a store's private-label share relative to the market average (RPLS) and store loyalty, measured with the share of wallet (SOW). The model controls for the traditional drivers of consumer choice behavior such as the retailer's marketing mix efforts (price, feature advertising, and store location) and household demographics. We conduct our econometric analyses using data from a panel of 5196 households from 23 stores of different chains in France over five years and a half (2004–2009). We adopt a factor analytic model which accounts for both household- and store-specific differences. The results indicate that effects of private label share on store loyalty depend upon (i) the household's private label usage, (ii) the store private label branding strategy, and (iii) how private label share is measured (e.g. private label share vs. relative private label share).

Suggested Citation

  • Ngobo, Paul-Valentin, 2011. "Private label share, branding strategy and store loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 18(4), pages 259-270.
    • Handle: RePEc:eee:joreco:v:18:y:2011:i:4:p:259-270
    DOI: 10.1016/j.jretconser.2010.11.007
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698910001177
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretconser.2010.11.007?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sanjay K. Dhar & Stephen J. Hoch, 1997. "Why Store Brand Penetration Varies by Retailer," Marketing Science, INFORMS, vol. 16(3), pages 208-227.
    2. Karsten Hansen & Vishal Singh & Pradeep Chintagunta, 2006. "Understanding Store-Brand Purchase Behavior Across Categories," Marketing Science, INFORMS, vol. 25(1), pages 75-90, 01-02.
    3. Birger Wernerfelt, 1988. "Umbrella Branding as a Signal of New Product Quality: An Example of Signalling by Posting a Bond," RAND Journal of Economics, The RAND Corporation, vol. 19(3), pages 458-466, Autumn.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gázquez-Abad, Juan Carlos & Martínez-López, Francisco J. & Esteban-Millat, Irene, 2017. "The role of consumers' attitude towards economic climate in their reaction to ‘PL-only’ assortments: Evidence from the United States and Spain," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 340-348.
    2. Gázquez-Abad, Juan Carlos & Martínez-López, Francisco J. & Sethuraman, Raj, 2021. "What factors moderate the effect of assortment reduction on store switching? Insights and implications for grocery brands," Journal of Business Research, Elsevier, vol. 133(C), pages 98-115.
    3. María Pilar Martínez-Ruiz & Juán José Blázquez-Resino & Giovanni Pino, 2017. "Store attributes leading customer satisfaction with unplanned purchases," The Service Industries Journal, Taylor & Francis Journals, vol. 37(5-6), pages 277-295, April.
    4. Zaffou, Madiha & Campbell, Benjamin & Rabinowitz, Adam, 2016. "Spillover Effect of Participation in Women, Infant and Children (WIC) Program on Consumer’s Purchasing Behavior of Private Label Goods," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 230100, Southern Agricultural Economics Association.
    5. Marques, Catarina & da Silva, Rui Vinhas & Davcik, Nebojsa S. & Faria, Rita Tamagnini, 2020. "The role of brand equity in a new rebranding strategy of a private label brand," Journal of Business Research, Elsevier, vol. 117(C), pages 497-507.
    6. Ngobo, Paul-Valentin & Jean, Sylvie, 2012. "Does store image influence demand for organic store brands?," Journal of Retailing and Consumer Services, Elsevier, vol. 19(6), pages 621-628.
    7. Fornari, Edoardo & Fornari, Daniele & Grandi, Sebastiano & Menegatti, Mario, 2013. "The influence of retailing-mix levers on private label market share: The case of the Italian FMCG market," Journal of Retailing and Consumer Services, Elsevier, vol. 20(6), pages 617-624.
    8. Kaswengi, Joseph & Diallo, Mbaye Fall, 2015. "Consumer choice of store brands across store formats: A panel data analysis under crisis periods," Journal of Retailing and Consumer Services, Elsevier, vol. 23(C), pages 70-76.
    9. Magali Jara & Jean-Marc Ferrandi, 2017. "Standard retail brand equity: antecedents and sustainable developments," Working Papers hal-01465177, HAL.
    10. Hanna Górska-Warsewicz & Sylwia Żakowska-Biemans & Maksymilian Czeczotko & Monika Świątkowska & Dagmara Stangierska & Ewa Świstak & Agnieszka Bobola & Julita Szlachciuk & Karol Krajewski, 2018. "Organic Private Labels as Sources of Competitive Advantage—The Case of International Retailers Operating on the Polish Market," Sustainability, MDPI, vol. 10(7), pages 1-28, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ngobo, Paul-Valentin & Jean, Sylvie, 2012. "Does store image influence demand for organic store brands?," Journal of Retailing and Consumer Services, Elsevier, vol. 19(6), pages 621-628.
    2. Hökelekli, Gizem & Lamey, Lien & Verboven, Frank, 2017. "The battle of traditional retailers versus discounters: The role of PL tiers," Journal of Retailing and Consumer Services, Elsevier, vol. 39(C), pages 11-22.
    3. González-Benito, Óscar & Martos-Partal, Mercedes, 2012. "Role of Retailer Positioning and Product Category on the Relationship Between Store Brand Consumption and Store Loyalty," Journal of Retailing, Elsevier, vol. 88(2), pages 236-249.
    4. Cui, Qinquan & Chiu, Chun-Hung & Dai, Xin & Li, Zhongfei, 2016. "Store brand introduction in a two-echelon logistics system with a risk-averse retailer," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 90(C), pages 69-89.
    5. Philipp Noormann & Sebastian Tillmanns, 2017. "Drivers of private-label purchase behavior across quality tiers and product categories," Journal of Business Economics, Springer, vol. 87(3), pages 359-395, April.
    6. Florez-Acosta, Jorge, 2021. "Do preferences for private labels respond to supermarket loyalty programs?," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 183-208.
    7. Verstraeten, Julie & Heeremans, Eva & Geuens, Maggie & Vermeir, Iris, 2023. "How online grocery shopping drives private label food purchases," Journal of Business Research, Elsevier, vol. 167(C).
    8. Szymanowski, M.G., 2009. "Consumption-based learning about brand quality : Essays on how private labels share and borrow reputation," Other publications TiSEM b12825d8-5e21-4437-adda-b, Tilburg University, School of Economics and Management.
    9. Csilla Horváth & Dennis Fok, 2013. "Moderating Factors of Immediate, Gross, and Net Cross-Brand Effects of Price Promotions," Marketing Science, INFORMS, vol. 32(1), pages 127-152, July.
    10. Jean-Pierre Dubé & Günter J. Hitsch & Peter E. Rossi, 2018. "Income and Wealth Effects on Private-Label Demand: Evidence from the Great Recession," Marketing Science, INFORMS, vol. 37(1), pages 22-53, January.
    11. Jean-Pierre Dubé & Günter J. Hitsch & Peter E. Rossi, 2015. "Income and Wealth Effects on Private-Label Demand: Evidence From the Great Recession," NBER Working Papers 21446, National Bureau of Economic Research, Inc.
    12. Magali Jara & Jean-Marc Ferrandi, 2017. "Standard retail brand equity: antecedents and sustainable developments," Working Papers hal-01465177, HAL.
    13. 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.
    14. Bauner, Christoph & Jaenicke, Edward & Wang, Emily & Wu, Ping-Chao, 2019. "Couponing Strategies in Competition Between a National Brand and a Private Label Product," Journal of Retailing, Elsevier, vol. 95(1), pages 57-66.
    15. Groznik, Ana & Heese, H. Sebastian, 2010. "Supply chain interactions due to store-brand introductions: The impact of retail competition," European Journal of Operational Research, Elsevier, vol. 203(3), pages 575-582, June.
    16. Óscar González-Benito & Mercedes Martos-Partal, 2014. "Price sensitivity versus perceived quality: moderating effects of retailer positioning on private label consumption," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 15(5), pages 935-950, November.
    17. Putsis, William Jr. & Dhar, Ravi, 2001. "An empirical analysis of the determinants of category expenditure," Journal of Business Research, Elsevier, vol. 52(3), pages 277-291, June.
    18. David R. Bell & Jeongwen Chiang & V. Padmanabhan, 1999. "The Decomposition of Promotional Response: An Empirical Generalization," Marketing Science, INFORMS, vol. 18(4), pages 504-526.
    19. Gauri, Dinesh Kumar & Trivedi, Minakshi & Grewal, Dhruv, 2008. "Understanding the Determinants of Retail Strategy: An Empirical Analysis," Journal of Retailing, Elsevier, vol. 84(3), pages 256-267.
    20. Karel Týra & Miroslav Karlíček, 2012. "Private-Label Share during the Current Economic Slowdown: Investigation from the Czech, Slovak, Hungarian and Polish Markets," Central European Business Review, Prague University of Economics and Business, vol. 2012(1), pages 27-32.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joreco:v:18:y:2011:i:4:p:259-270. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.