Managerial Practices and (Post) Pandemic Consumption of Private Labels: Online and Offline Retail Perspective in a Portuguese Context

Abstract

Currently, given the different dynamics of competition, food retailers are increasingly betting on private labels as a strategy of differentiation and retention of competitive advantages. To this extent, this study aims to assess the antecedents of the purchase intention of food retailers’ private labels, as well as to understand the managerial practices and (post) pandemic consumption retail perspective in a Portuguese context. The results obtained, through a quantitative analysis by means of multiple linear regressions, on a random sample of customers (n = 300) indicate that customer satisfaction and attitude towards his/her own brand are quite favourable, as demonstrated by the existence of a high loyalty to his/her own brand. Additionally, they reveal that the purchase experience, the private-label image, the perceived risk, and the COVID-19 pandemic are prior attitudes towards the private label and its mediation in the purchase intention and recommendation of its products. Finally, loyalty to the private label, store satisfaction and, through these, also the shopping experience were confirmed as determinants of loyalty. These results provide insights to food retailers on aspects to be improved and considered in the design of commercial strategies that promote the intention to purchase private-label products and that win and retain customers and achieve competitive advantages and profitability. Regarding the COVID-19 pandemic, the study reveals that some consumers changed their purchasing patterns, choosing to buy more private-label products at this stage.

Packaging-free practices in food retail: the impact on customer loyalty

“…This study also contributes to the discussion on the impact of brand trust on customer loyalty. While some studies suggest that the impact of brand trust on loyalty may not be straightforward (Chen et al ., 2009), our findings emphasize that this relationship may be moderated by specific contexts, including sectors with high competition (Pinto et al ., 2022; Ruiz-Molina et al ., 2017; Loureiro et al ., 2014; Nesset et al ., 2021) and high levels brand trust towards the major players in the industry (Loureiro et al ., 2014).…”

“…The current study highlighted the important role of sustainability practices in the retail industry. Food retail is marked by intense rivalry (Pinto et al ., 2022; Ruiz-Molina et al ., 2017; Loureiro et al ., 2014) and major efforts in loyalty programs (Bies et al ., 2021; Steinhoff and Zondag, 2021; Nesset et al ., 2021). In such a demanding context, this article provides valuable insights for retail managers, as it demonstrates that integrating sustainability in operational activities such as the types of products (pre-packaged and packaging-free) that are available in stores can help foster customer loyalty.…”

Did disruptive events affect the purchase of private label food products?

“…Pinto et al (2022) found that customers showed high satisfaction and loyalty towards PL brands, revealing that the purchase experience, the image of PLs, perceived risk, and the impact of the pandemic influenced customers' attitudes and intentions to purchase and recommend PL products. Additionally, due to the pandemic, some consumers shifted their purchasing patterns and increased their consumption of PL products (Pinto et al, 2022). Also, Pinto et al (2022) suggest future studies on factors such as third-party recommendations, the current economic situation, PL packaging, and also comparative studies with other sustainable brands in Portugal or expanding the research to other countries where sustainable PLs are available.…”

“…In this context, future research should include comparisons in terms of quality and pricing to analyse the development of PLs in organic product categories and the extent to which sustainability is integrated into PL offerings. Pinto et al . (2022) found that customers showed high satisfaction and loyalty towards PL brands, revealing that the purchase experience, the image of PLs, perceived risk, and the impact of the pandemic influenced customers' attitudes and intentions to purchase and recommend PL products.…”

“…(2022) found that customers showed high satisfaction and loyalty towards PL brands, revealing that the purchase experience, the image of PLs, perceived risk, and the impact of the pandemic influenced customers' attitudes and intentions to purchase and recommend PL products. Additionally, due to the pandemic, some consumers shifted their purchasing patterns and increased their consumption of PL products (Pinto et al ., 2022). Also, Pinto et al.…”