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Do Store Brands Aid Store Loyalty?

Author

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  • Satheesh Seenivasan

    (Department of Marketing, Monash University, Caulfield, Victoria 3145, Australia)

  • K. Sudhir

    (Yale School of Management, Yale University, New Haven, Connecticut 06520)

  • Debabrata Talukdar

    (School of Management, State University of New York at Buffalo, Buffalo, New York 14260)

Abstract

Do store brands aid store loyalty by enhancing store differentiation or merely draw price-sensitive customers with little or no store loyalty? This paper seeks to answer this question by empirically investigating the relationship between store brand loyalty and store loyalty. First, we find a robust, monotonic, positive relationship between store brand loyalty and store loyalty by using multiple loyalty metrics and data from multiple retailers and by controlling for alternative factors that can influence store loyalty. Second, we take advantage of a natural experiment involving a store closure and find that the attrition in chain loyalty is lower for households with greater store brand loyalty prior to store closure. Together, our results are consistent with evidence for the store differentiation role of store brands. This paper was accepted by J. Miguel Villas-Boas, marketing .

Suggested Citation

  • Satheesh Seenivasan & K. Sudhir & Debabrata Talukdar, 2016. "Do Store Brands Aid Store Loyalty?," Management Science, INFORMS, vol. 62(3), pages 802-816, March.
    • Handle: RePEc:inm:ormnsc:v:62:y:2016:i:3:p:802-816
    DOI: 10.1287/mnsc.2014.2133
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    References listed on IDEAS

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    1. Sergio Meza & K. Sudhir, 2010. "Do private labels increase retailer bargaining power?," Quantitative Marketing and Economics (QME), Springer, vol. 8(3), pages 333-363, September.
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    5. 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.
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

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    2. Larson, Ronald B., 2016. "Profiling Private-Label Avoiders," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235823, Agricultural and Applied Economics Association.
    3. Albert Valenti & Shuba Srinivasan & Gokhan Yildirim & Koen Pauwels, 2024. "Direct mail to prospects and email to current customers? Modeling and field-testing multichannel marketing," Journal of the Academy of Marketing Science, Springer, vol. 52(3), pages 815-834, May.
    4. Yu, Dongdong & Luo, Chunlin & Xu, Jie & Ng, C.T., 2024. "To share or not to share: Strategic information sharing with store brand encroachment in platform markets," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 189(C).
    5. Yasin Alan & Mümin Kurtuluş & Chunlin Wang, 2019. "The Role of Store Brand Spillover in a Retailer’s Category Management Strategy," Manufacturing & Service Operations Management, INFORMS, vol. 21(3), pages 620-635, July.
    6. Koll, Oliver & Plank, Andreas, 2022. "Do shoppers choose the same brand on the next trip when facing the same context? An empirical investigation in FMCG retailing," Journal of Retailing, Elsevier, vol. 98(4), pages 576-592.
    7. Chen, Qiuyan & Yan, Xin & Bian, Yiwen & Han, Xiaohua, 2025. "Live streaming channel and product assortment with both national and store brand products," Omega, Elsevier, vol. 131(C).
    8. Karoui, Sedki & Behi, Azza Temessek & Fehri, Dorsaf & Belaid, Samy & Lacoeuilhe, Jérôme, 2024. "Predicting label brand loyalty: A comparison of two models using a partial least square-structural equation modeling," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).
    9. Bolandifar, Ehsan & Chen, Zhong & Zhu, Kaijie, 2021. "Managing competitive levers in a collaborative distribution channel," European Journal of Operational Research, Elsevier, vol. 293(3), pages 1031-1042.
    10. Madani, Fatima & Seenivasan, Satheesh & Ma, Junzhao, 2021. "Determinants of store patronage: The roles of political ideology, consumer and market characteristics," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).
    11. Wu, Lifang & Yang, Wei & Wu, Jessica, 2021. "Private label management: A literature review," Journal of Business Research, Elsevier, vol. 125(C), pages 368-384.
    12. Keller, Kristopher O. & Dekimpe, Marnik G. & Geyskens, Inge, 2022. "Adding budget and premium private labels to standard private labels: Established empirical generalizations, emerging empirical insights, and future research," Journal of Retailing, Elsevier, vol. 98(1), pages 5-23.
    13. Cheng, Fei & Chen, Tong & Shen, Yuting & Jing, Xiaodong, 2022. "Impact of green technology improvement and store brand introduction on the sales mode selection," International Journal of Production Economics, Elsevier, vol. 253(C).
    14. Agnese Carella & Valentina Michelangeli, 2021. "Information or persuasion in the mortgage market: the role of brand names," Temi di discussione (Economic working papers) 1340, Bank of Italy, Economic Research and International Relations Area.

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