Do Private Labels Lead to Store Loyalty? An Integrated Framework of Analysis Using a Structural Equation Modeling Approach

Abstract

In this study we follow an integrated approach-combining in-store characteristics and economic factors-to assess the role of private labels (PLs) as a driver of store loyalty, across different types of retailers. We apply structural equation modeling to a large survey collected online, with results at aggregate level indicating that PLs loyalty indeed seems to contribute to store loyalty. However, when analysis takes into consideration the different types of supermarket (low-cost, medium-cost, and premium), findings suggest that PLs play a critical role in generating consumers' loyalty behavior exclusively in medium and premium supermarkets.