Do private labels generate customer loyalty in food retailing?
The increase of private labels in food retailing and retailers' high expenditures for establishing them raise one central question: Do consumers really consider private labels as "real" brands and develop loyalty towards them. We analyse a four year panel data set on frozen pizza purchases to study differences in consumers' repurchasing behaviour between two strong national brands and private labels. In sum, our results show significant differences. However, the observable repurchase behaviour can not fully reflect the attitudinal component of brand loyalty. So subsequently, we present potential approaches to identify the underlying attitudinal component.
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