Consumer satisfaction and loyalty in private-label food stores

2014 ◽  
Vol 116 (5) ◽  
pp. 849-871 ◽  
Author(s):  
María Pilar Martínez-Ruiz ◽  
Pablo Ruiz-Palomino ◽  
Ricardo Martinez-Canas ◽  
Juan José Blázquez-Resino
Keyword(s):  
Consumer Satisfaction ◽  
Private Label ◽  
Food Store ◽  
Food Retailing ◽  
National Brand ◽  
Content Type ◽  
Attitudinal Loyalty ◽  
Performance Variables ◽  
Marketing Performance ◽  
Store Attributes

Purpose – This study aims to determine which factors underlie the store attributes that contribute to a particular food store image. Furthermore, heightened recent attention to private labels in the food retailing industry creates the need to assess whether the factors vary, depending on customers' brand proneness and their impact on key marketing performance variables (satisfaction, attitudinal loyalty, behavioural loyalty). Design/methodology/approach – The proposed analysis features 211 questionnaires out of a sample of 391 consumers surveys gathered in four different store formats; 137 of which were completed by consumers who admitting being private label prone, and 74 pertaining to consumers who considered themselves national brand prone. The underlying food store factors were identified using factorial analysis of principal components, and their influence on consumers' satisfaction and loyalty was evaluated with linear parametric regression models. Findings – Store attributes related to providing sufficiently convenient purchasing experiences and a special atmosphere are most important for private label brand-prone consumers and enhance their satisfaction, attitudinal loyalty and behavioural loyalty. For national brand-prone consumers, attributes related to quality are more important for enhancing marketing performance variables. Research limitations/implications – The results enable a clear identification of food store factors that vary with the consumer segment being considered (private label prone consumers vs. national brand prone), as well as their differential impacts on key marketing performance variables. Practical implications – To appeal to private label-prone consumers, food retailers should put particular emphasis on the attributes of the store itself, especially those that enhance convenience and the pleasantness of the store atmosphere. To attract national brand-prone consumers, they primarily need to highlight aspects related to quality. Originality/value – This research emphasises the importance of building competitive strategies in food retailing based on: an increased knowledge about the attributes and factors that food consumers value more highly; and brand type preferences.

How do wet markets still survive in Taiwan?

2015 ◽  
Vol 117 (1) ◽  
pp. 234-256 ◽  
Author(s):  
Chi-tsun Huang ◽  
Kuen-Hung Tsai ◽  
Yu-Chih Chen
Keyword(s):  
Food Quality ◽  
Consumer Satisfaction ◽  
Critical Role ◽  
Partial Least Square ◽  
Least Square ◽  
Food Retailing ◽  
Content Type ◽  
Retail Service ◽  
Store Design ◽  
Fierce Competition

Purpose – The purpose of this paper is to answer why wet markets still survive in Taiwan while facing to fierce competition from western-style supermarkets. Design/methodology/approach – The authors adopt the perspectives of retail service to develop a model to address how food quality, relational benefit, and personnel service affect consumers’ satisfaction. A sample of 250 consumers was surveyed in a major wet market at Taiwan. Findings – The results obtained from the partial least square (PLS) method reveal that food quality and relational benefit positively affect consumers’ satisfaction, and the effects of these increase with time; employee service has a positive effect on consumers’ satisfaction, but the effect decreases with time; and the ambience does affect consumer satisfaction, but the store design does not. Originality/value – This paper provides empirical answers to the question about why wet markets still play a critical role in the food retailing industry in a newly industrial economy where consumer’ tastes are supposed to be more westernized or so-called ‘supermarketized’ four decades after the introduction of supermarkets.

scholarly journals The impact of private label foods on supply chain governance

2014 ◽  
Vol 116 (7) ◽  
pp. 1106-1127 ◽  
Author(s):  
Ilias P. Vlachos
Keyword(s):  
Supply Chain ◽  
Consumer Satisfaction ◽  
Single Case ◽  
Case Study Research ◽  
Private Label ◽  
Sources Of Information ◽  
Content Type ◽  
Supply Chain Governance ◽  
The Impact

Purpose – The purpose of this paper is to investigate the impact of the introduction of private label (PL) foods upon the governance of the food supply chains. Design/methodology/approach – The authors conducted a multi-case study research examining the launch and development of PL cheeses in four large national-wide retail chains. The paper focused on the category of Products of Designated Origin (PDO) cheeses, including the popular feta cheese. Data collection involved semi-structured interviews and secondary sources of information. Data analysis involved single-case and within-case analyses. Findings – There is a strong motive to launch and develop PL cheeses due to increasing consumer demand. Retailers choose suppliers based on criteria such as: compliance to quality assurance standards, modernisation of processing facilities, implementation of legislation, credibility, experience, and reputation. Retailers use contracts and prefer small suppliers than medium-sized companies. Supply chain governance turns from market to hierarchy status, which performs better in terms of supply chain cost, food quality, and consumer satisfaction. The structure of food industry is also affected by pressure put on medium-sized food companies. Research limitations/implications – The paper is based on a multiple case study design that does not provide static generalisations, yet it offers a stepping stone to building new theory about supply chain governance, how it evolves and its effects on supply chain performance. Practical implications – The introduction of PL cheeses favours small and dynamic cheese processing units willing to adopt retailer standards and prices over larger units, which poses a real threat to the survival of regional-wide food companies. Originality/value – Few studies have examined how supply chain governance evolves and what triggers a change in governance structures.

Effects of store attributes on retail patronage behaviors

2015 ◽  
Vol 19 (2) ◽  
pp. 136-153 ◽  
Author(s):  
Hyo Jung Chang ◽  
Hyeon Jeong Cho ◽  
Thomas Turner ◽  
Megha Gupta ◽  
Kittichai Watchravesringkan
Keyword(s):  
Factor Analysis ◽  
Consumer Satisfaction ◽  
Structural Equation ◽  
Positive Influence ◽  
Future Research ◽  
Content Type ◽  
Store Attributes ◽  
Patronage Behavior ◽  
Managerial Implications ◽  
Sales Employees

Purpose – The purpose of this paper is to identify selected store attributes of activewear specialty retailers that impact consumers’ satisfaction, which in turn influence word-of-mouth (WOM) and retail patronage behavior. Design/methodology/approach – Using an on-site store intercept, 150 responses were collected to answer hypothesized relationships. An exploratory factor analysis was first performed followed by a confirmatory factor analysis and a structural equation analysis. Findings – Results revealed that sales employees and store atmosphere attributes of activewear specialty stores had a positive influence on consumer satisfaction, which in turn had a direct impact on WOM and repatronage intentions for activewear specialty stores. Therefore, in order to satisfy consumers, activewear specialty retailers need to ensure that they provide an attractive and pleasant shopping atmosphere. Furthermore, satisfied consumers are likely to spread positive WOM about the retailer and display their intention to revisit the store in the future. The authors conclude by discussing the results and suggest implications and future research directions. Originality/value – The findings of this research shed light on the managerial implications for activewear specialty retailers with regards to marketing strategies and consumers’ attitudes.

Corporate social responsibility innovation as a counterstrategy of national brand manufacturer against private label

2019 ◽  
Vol 11 (3) ◽  
pp. 393-407 ◽  
Author(s):  
Heng Xu
Keyword(s):  
Corporate Social Responsibility ◽  
Theoretical Model ◽  
Social Responsibility ◽  
Private Label ◽  
National Brand ◽  
Socially Responsible ◽  
Content Type ◽  
Non Linear ◽  
Corporate Social ◽  
Brand Product

Purpose This paper aims to investigate the national brand manufacturer's ability from corporate social responsibility (CSR) innovation as a counterstrategy against the private label by a retailer. By constructing a model of manufacturer–retailer interaction, the paper attempts to analyze that the national brand manufacturer’s decision on the CSR innovation and the effect of such innovation on the retailer’s motivation of launching the private label. The results of the theoretical model in this paper could be applied by the actors in supply chains in making decision on CSR innovation and the launch of a new brand. Design/methodology/approach The theoretical model in the paper describes a manufacturer–retailer interaction with the presence of the private label and CSR innovation on the national brand. Specifically, the manufacturer has option of innovating its products and makes them to be more socially responsible; in the meanwhile, the retailer has option of launching its private label. Moreover, there are heterogeneous consumers with respect to their preferences on the CSR feature. The altruistic consumers prefer the socially responsible product while the normal consumers are indifferent between the socially responsible and basic products. By predicting the expected profit, the two firms make decision over the supply chain. Findings The authors find that the CSR innovation can indeed restrict the retailer’s incentive to launch the private label. Because of the presence of the altruistic consumers, the CSR innovation can help the national brand product to expand its market relative to the situation without the innovation. They demonstrate that the national brand manufacturer wishes to invest more in CSR innovation under non-linear pricing contract and the retailer is more likely to launch the private label. This is because that the non-linear pricing contract makes the two firms to concern more about their joint profit, causing the competition is less fierce. Originality/value This paper explains that the CSR innovation in the national brand product can be an effective counterstrategy by the manufacturer to deter the launch of the private label, which has not been considered by the existing studies about national brand-private label competition. Moreover, this paper also shows that the CSR innovation may benefit both the national brand manufacturer and the retailer under some conditions. In addition, the results of the paper provide some insights to the national brand manufacturer when making decision on the CSR innovation and to the retailer when reacting the manufacturer’s CSR innovation.

Replacing a delisted brand with premium and standard private labels

2019 ◽  
Vol 47 (10) ◽  
pp. 1057-1073 ◽  
Author(s):  
Léopold Lessassy
Keyword(s):  
Private Label ◽  
Positive Contribution ◽  
Brand Preference ◽  
Chain Store ◽  
National Brand ◽  
Content Type ◽  
Shopping Trip ◽  
Retail Chain ◽  
Brand Competition ◽  
The Impact

Purpose The purpose of this paper is to examine the moderating effect of brand preference and type of shopping trip on the relationship between replacing a delisted national brand (NB) with a retailer’s private label (PL) brand (premium vs standard) and private label switching (PLS), that is switching from NB to PL. Design/methodology/approach Inside a major French retail chain store, an experiment with 1,392 NB buyers tested the impact of replacing NB with PL on PLS. Findings Results stress the positive contribution of PL replacements after NB delisting on buyers’ switching behaviour at different brand preference levels and shopping trip types. A main-choice NB for a major trip shopping benefits a PLS to premium PL. However, when a fill-in shopper looks for a secondary brand, competition between PL standard and NB may not be as weak as suggested in earlier studies. Research limitations/implications The limitation of this study is that respondents reported their purchases instead of actually buying. Practical implications This study highlights that the retailers that delist some NB brands in the category should adopt a strategy either to develop premium or standard PLs, depending on consumers’ brand preference and shopping trip type. Social implications Delisting is an opportunity to question the NB product competitiveness towards PL. Originality/value The study is based on actual delisting and replacement, combined with a large sample, unlike previous studies. Moreover, it bridges two important areas of research: conflict in marketing channels and PL introduction in retailers’ assortment decisions.

scholarly journals The Role of Store Layout and Visual Merchandising in Food Retailing

2016 ◽  
Vol 4 (1) ◽  
pp. 138 ◽  
Author(s):  
Ivana Štulec ◽  
Kristina Petljak ◽  
Anja Kukor
Keyword(s):  
Store Loyalty ◽  
Food Store ◽  
Food Retailing ◽  
Bottom Line ◽  
Space Management ◽  
Factors Affecting ◽  
Store Attributes ◽  
Self Service ◽  
Visual Merchandising

Literature proposes a number of store attributes as potentially significant factors affecting customers’ evaluation of retailer’s image, store loyalty and overall satisfaction, such as merchandise assortment and quality, service in general, personnel, store layout, convenience, cleanliness and atmosphere. Successful and profitable retailers use effectively each and every square meter of the retail space, both in the store and in the warehouse. Since retail space is costly, space management is gaining strategic importance in retailing. Appropriate store floor plans, location of certain merchandise categories, levels of inventory and visual displays are crucial factors of proper use of retail space. Misuse of retail space can be detrimental to retailer’s bottom line as it can result in difficulties in orientation of customers in the store, their shorter stay in the store, consequentially lower sales and possible loss of customers. It is hypothesised that effects of poor space management are even more pronounced in retail formats that incorporate self-service as a selling method with food retailers being especially at risk because in a setting where consumers can find identical merchandise in more than one store, layout and presentation become key differentiating factors. An empirical study is conducted as to determine the role of food store layout and visual merchandising compared to other store attributes in achieving customer satisfaction and to define preferable large food store layout among consumers. Research results imply that retailers need to create stimulating atmosphere and appealing layout in order to trigger consumer's buying decision.

In-store marketing of private labels: applying cue utilisation theory

2020 ◽  
Vol 49 (1) ◽  
pp. 145-163
Author(s):  
Sita Mishra ◽  
Gunjan Malhotra ◽  
Garima Saxena
Keyword(s):  
Emerging Market ◽  
Perceived Quality ◽  
Private Label ◽  
New Delhi ◽  
National Brand ◽  
Content Type ◽  
National Brands ◽  
Price Consciousness ◽  
Private Label Brands ◽  
Brand Promotion

PurposeThe purpose of this study is to examine the effectiveness of in-store private label marketing to impact the attitude of consumers towards private label brands (PLBs) by influencing consumers' perceived quality variations between the PLBs and national brands.Design/methodology/approachThis study is based on “Cue utilisation theory” and focusses on how retailers can influence consumers' perception of quality variations by providing them in-store marketing cues. Data was collected through the mall intercept method in New Delhi, India. Data analysis was done using AMOS 25 and the PROCESS SPSS macro.FindingsThis study establishes the effect of in-store private label marketing in improving consumers' quality perception of PLBs vis-à-vis national brands and thereby leading to a positive attitude towards PLBs. Further, the national brand promotions attitude is found to moderate the relationship between private label marketing and attitude towards PLBs. However, contrary to the authors' expectations, it has a positive effect on this relationship. The study found an insignificant moderation influence of price consciousness.Originality/valueThis study complements existing literature on “Cue utilisation theory” by demonstrating the importance of in-store private label marketing in improving consumers' attitudes towards PLBs. It also extends to fill some gaps in the literature by studying the direct, mediating and moderating relationship among in-store private label marketing, perceived quality variations, price consciousness, national brand promotion attitude and attitude towards PLBs, especially in an emerging market such as India.

Identifying a private-label supplier on national brand

2019 ◽  
Vol 28 (3) ◽  
pp. 432-443 ◽  
Author(s):  
Samanta Pérez-Santamaría ◽  
Mercedes Martos-Partal ◽  
Álvaro Garrido-Morgado
Keyword(s):  
Brand Image ◽  
Perceived Quality ◽  
Relative Price ◽  
Private Label ◽  
National Brand ◽  
Content Type ◽  
National Brands ◽  
Loyalty Intention ◽  
Parent Brand ◽  
Grocery Products

Purpose The purpose of this study is to examine the effects of identifying suppliers on private label (PL) packaging on the perceived quality, brand image, loyalty intention and relative price of the national brands (NB) produced by dual manufacturers, considering the possible moderating effects of the images of both the NB and PL. Design/methodology/approach The study uses an experimental setting with two different categories of grocery products. Findings The empirical evidence reveals different effects of PL supplier identification, according to brand images. Research limitations/implications This paper contributes to brand extension literature on the effects on evaluations of the parent brand. It also contributes insights about the identity and identification of PL manufacturers. Practical implications This supplier identification does not affect or positively affect to the perceived quality, brand image or loyalty toward NBs with lower images, but it negatively affects those with high images, especially when the PL also has a high image and adopts a stronger price positioning. Moreover, NBs with lower images appear more expensive or do not affect when they supply PLs for retailers with high images and stronger price positioning. However, if lower image NB supply a PL with the lower image, the effects do not affect or is perceived as cheaper. Originality/value This paper extends prior knowledge about the decision to function as a dual manufacturer from the manufacturer’s perspective.

Specialty food retailing: examining the role of products’ perceived quality

2017 ◽  
Vol 119 (7) ◽  
pp. 1511-1524 ◽  
Author(s):  
Cristina Calvo-Porral ◽  
Jean-Pierre Lévy-Mangin
Keyword(s):  
Consumer Satisfaction ◽  
Structural Equation ◽  
Perceived Quality ◽  
Food Retailing ◽  
Content Type ◽  
Quality Perception ◽  
The Empirical Analysis ◽  
Moderating Role ◽  
Customer Satisfaction And Loyalty

Purpose The purpose of this paper is to address the following issue: “Does the products’ perceived quality influences the consumer behaviour in the specialty retailing setting?” Design/methodology/approach For this purpose, the authors propose and empirically test a conceptual model on the creation of consumer satisfaction and loyalty in specialty retailing, to examine the influence of products’ quality perception and its potential moderating role. Data were analysed through structural equation modelling on a sample of 592 consumers Findings The findings show that the store-based attributes have different influence on customer satisfaction and loyalty, according to the quality perception of products, and suggest the moderating role of products’ perceived quality. Practical implications Retailing managers may use the product’s perceived quality as a segmentation variable in the specialty food retailing context. Originality/value The major contribution of this paper is the empirical analysis of one subjective customer-based variable in the specialty retailing setting.

scholarly journals Consumer Preferences for Private Label Brand vs. National Brand Organic Juice and Eggs: A Latent Class Approach

2021 ◽  
Vol 13 (13) ◽  
pp. 7028
Author(s):  
Ellen J. Van Loo ◽  
Fien Minnens ◽  
Wim Verbeke
Keyword(s):  
Orange Juice ◽  
Latent Class ◽  
Consumer Preferences ◽  
Latent Class Model ◽  
Organic Food ◽  
Food Products ◽  
Organic Production ◽  
Private Label ◽  
National Brand ◽  
Major Barrier

Many retailers have expanded and diversified their private label food product assortment by offering premium-quality private label food products such as organic products. With price being identified as the major barrier for organic food purchases, private label organic food products could be a suitable and more affordable alternative for many consumers. While numerous studies have examined consumer preferences for organic food, very few organic food studies have incorporated the concept of private labels. This study addresses this research gap by studying consumer preferences and willingness to pay for national brand and private label organic food using a latent class model. Specifically, this study analyzes consumer preferences for organic eggs and orange juice and the effect of national branding versus private label. Findings show heterogeneity in consumer preferences for production method and brand, with three consumer segments being identified based on their preferences for both juice and eggs. For eggs, about half of the consumers prefer private label and organic production, whereas one-quarter clearly prefers organic, and another quarter is indifferent about the brand and the organic production. For orange juice, the majority (75%) prefer the national brand. In addition, one-quarter of the consumers prefers organic juice, and about one-third values both organic and the national brand.

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