IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v62y2016i3p802-816.html
   My bibliography  Save this article

Do Store Brands Aid Store Loyalty?

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.2014.2133
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.2014.2133?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
    ---><---

    References listed on IDEAS

    as
    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.
    2. Alon Eizenberg & Alberto Salvo, 2015. "The Rise of Fringe Competitors in the Wake of an Emerging Middle Class: An Empirical Analysis," American Economic Journal: Applied Economics, American Economic Association, vol. 7(3), pages 85-122, July.
    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. Fiona Scott Morton & Florian Zettelmeyer, 2004. "The Strategic Positioning of Store Brands in Retailer--Manufacturer Negotiations," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 24(2), pages 161-194, March.
    5. 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.
    6. Karsten Hansen & Vishal Singh, 2008. "Research Note--Are Store-Brand Buyers Store Loyal? An Empirical Investigation," Management Science, INFORMS, vol. 54(10), pages 1828-1834, October.
    7. K. Sudhir & Debabrata Talukdar, 2004. "Does Store Brand Patronage Improve Store Patronage?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 24(2), pages 143-160, March.
    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. 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.
    2. Bockholdt, Katrin & Kemper, Jan & Brettel, Malte, 2020. "Private label shoppers between fast fashion trends and status symbolism – A customer characteristics investigation," Journal of Retailing and Consumer Services, Elsevier, vol. 52(C).
    3. 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.
    4. 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).
    5. 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).
    6. Larson, Ronald B., 2016. "Profiling Private-Label Avoiders," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235823, Agricultural and Applied Economics Association.
    7. Wu, Lifang & Yang, Wei & Wu, Jessica, 2021. "Private label management: A literature review," Journal of Business Research, Elsevier, vol. 125(C), pages 368-384.
    8. 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.
    9. 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.
    10. 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.

    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. 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.
    2. Mercedes Martos-Partal & Óscar González-Benito, 2011. "Store brand and store loyalty: The moderating role of store brand positioning," Marketing Letters, Springer, vol. 22(3), pages 297-313, September.
    3. Wu, Lifang & Yang, Wei & Wu, Jessica, 2021. "Private label management: A literature review," Journal of Business Research, Elsevier, vol. 125(C), pages 368-384.
    4. İpek, İlayda & Aşkın, Nilay & İlter, Burcu, 2016. "Private label usage and store loyalty: The moderating impact of shopping value," Journal of Retailing and Consumer Services, Elsevier, vol. 31(C), pages 72-79.
    5. Karray, Salma & Martín-Herrán, Guiomar, 2022. "The impact of a store brand introduction in a supply chain with competing manufacturers: The strategic role of pricing and advertising decision timing," International Journal of Production Economics, Elsevier, vol. 244(C).
    6. Sherif Nasser & Danko Turcic & Chakravarthi Narasimhan, 2013. "National Brand's Response to Store Brands: Throw In the Towel or Fight Back?," Marketing Science, INFORMS, vol. 32(4), pages 591-608, July.
    7. Zha, Yong & Guo, Xiaowei & Chen, Huaping & Ling, Liuyi, 2022. "How does Store Branded Lookalike Packaging Affect Competition in a Dyadic Supply Chain: A Consumer Confusion Perspective," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 165(C).
    8. Sylvia Hristakeva, 2022. "Determinants of Channel Profitability: Retailers’ Control over Product Selections as Contracting Leverage," Marketing Science, INFORMS, vol. 41(2), pages 315-335, March.
    9. Martos-Partal, Mercedes & González-Benito, Óscar, 2013. "Studying motivations of store-loyal buyers across alternative measures of behavioural loyalty," European Management Journal, Elsevier, vol. 31(4), pages 348-358.
    10. Sheikh Basharul Islam & Suhail Ahmad Bhat & Mushtaq Ahmad Darzi, 2021. "Determining the Influence of Private Labels on Sales of National Brands: A Qualitative Approach," FIIB Business Review, , vol. 10(2), pages 133-145, June.
    11. Zhiqi Chen & Heng Xu, 2021. "Private labels and product quality under asymmetric information," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 30(4), pages 743-759, November.
    12. Bo Liao & Candace A. Yano & Minakshi Trivedi, 2020. "Optimizing Store‐Brand Quality: Impact of Choice of Producer and Channel Price Leadership," Production and Operations Management, Production and Operations Management Society, vol. 29(1), pages 118-137, January.
    13. 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.
    14. Shen, Qichao & He, Bo & Qing, Qiankai, 2022. "Interplays between manufacturer advertising and retailer store brand introduction: Agency vs. wholesale contracts," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    15. Arcan Nalca, & Tamer Boyaci, & Saibal Ray, 2017. "Consumer taste uncertainty in the context of store brand and national brand competition," ESMT Research Working Papers ESMT-17-01, ESMT European School of Management and Technology.
    16. Daunfeldt, Sven-Olov & Orth, Matilda & Rudholm, Niklas, 2008. "Does the Quality of Store Brands Affect the Number of National Brand Suppliers?," HUI Working Papers 18, HUI Research.
    17. Gabrielsen, Tommy Staahl & Sorgard, Lars, 2007. "Private labels, price rivalry, and public policy," European Economic Review, Elsevier, vol. 51(2), pages 403-424, February.
    18. 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.
    19. Rong Luo, 2018. "Store brands and retail grocery competition," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 27(4), pages 653-668, October.
    20. Johannes Paha, 2017. "Wholesale Pricing with Incomplete Information about Private Label Products," MAGKS Papers on Economics 201736, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).

    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:inm:ormnsc:v:62:y:2016:i:3:p:802-816. 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: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    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.