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Determinants Influencing Consumer'S Loyalty Towards A Private Brand

Author

Listed:
  • Adi Alić

    (School of Economics and Business Sarajevo, Trg oslobođenja – Alija Izetbegović 1, 71 000 Sarajevo, Bosnia and Herzegovina)

  • Almir Peštek

    (School of Economics and Business Sarajevo, Trg oslobođenja – Alija Izetbegović 1, 71 000 Sarajevo, Bosnia and Herzegovina)

  • Ehlimana Merdić

    (Robot General Trading Co d.o.o., Rajlovačka cesta 41, 71 000 Sarajevo, Bosnia and Herzegovina)

Abstract

In modern consumer society, consumers are increasingly demanding, and the role of the brand as a means of communication is crucial because brands are powerful enough to attract and retain consumers. Consumers create a relationship with a brand based on quality guarantee and positive experience. The main purpose of this paper is to explore determinants influencing consumer loyalty towards a private brand. The research is based on the private brand R-Time owned by the trade chain Robot. Data were collected through a field survey on a sample of 439 respondents and analyzed using SEM analysis. The results show that price and quality perception affect loyalty towards a private-brand product, whereas there is no difference between ethnocentric and non-ethnocentric groups of consumers. The findings suggest that retailers should pay close attention to price and quality perception, while emphasizing domestic origin is not necessary in this case.

Suggested Citation

  • Adi Alić & Almir Peštek & Ehlimana Merdić, 2019. "Determinants Influencing Consumer'S Loyalty Towards A Private Brand," Poslovna izvrsnost-Business Excellence, University of Zagreb Faculty of Economics & Business, vol. 13(2), pages 31-51.
    • Handle: RePEc:zag:busexc:v:13:y:2019:i:2:p:31-51
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