Premium private label: how product value, trust and category involvement influence consumers willingness to buy

Abstract

Premium private labels (PPLs) are applied to products with distinctive features with prices equal, and sometimes even higher, than those of the category leaders. The objective of the retailers is to obtain, in the minds of consumers, the same positioning of national brands. So, PPLs are becoming more and more crucial for competitive advantage and store loyalty. Starting from this evidence, this paper aims to contribute to the advancement of knowledge on the subject, analyzing the impact of consumer trust in retailer, consumer involvement and product value on consumer willingness to buy PPLs. Data for hypotheses testing were collected through a 2 × 2 × 2 experiment between subjects, in which different groups of consumers were randomly exposed to different experimental conditions. Results show that: (a) consumer trust in retailer positively influences consumer’s willingness to buy in case of products with hedonic value; (b) consumer involvement has a significant main effect and there is a significant two-way interactions between trust and involvement; (c) when consumer trust in retailer is low, non-involved consumers show a greater willingness to buy the PPL for products with utilitarian rather than hedonic value.

How new sustainability typologies will reshape traditional approaches to loyalty

“…Harris & Goode advocate the importance of equity, arguing that perceived value, satisfaction, service quality are key requirements of a relationship whereas trust is the key, central factor (ibid). Their finding that trust is the key and that loyalty may follow is supported by more recent studies (Bertoli et al, 2020).…”

“…Furthermore, loyalty is predicated on trust which builds upon factors such as reliability and consistency, i.e. fulfilling the promises made (Bitner, 1995), to the same standard (Bertoli et al, 2020), 'being there' when required, going the extra mile, being treated equitably (Harris & Goode, 2004). The last of these is particularly interesting as the loyalty literature tends to underplay the importance of equity.…”

“…7) and SM loyalty ladder (Fig. 8) could inform future studies, for example, analysing why sustainable values may have a weaker influence on consumer decision making processes (Jackson, 2005); attitudes post-usage; motivation to be greener or more ethical; demographic characteristics, finance, habit, lack of information, lifestyles, or trading off between different ethical factors (Young et al, 2010); how consumers' perceptions shape sustainable consumption (ibid); the extent to which personality influences sustainable consumption; trust and consumer involvement in sustainable practices (Bertoli et al, 2020). Future research could relate to sustainable STP approaches or to investigate the extent to which sustainable consumers feel 'locked in' (Harrison et al, 2012;Murray & Haubl, 2007;Sanne, 2002).…”

“…A goal of this paper is to improve conceptualisation by providing definitions relating to sustainability (and Sustainable Marketing). Whilst this study is located in the Critical School, it resonates with those who studied BAU loyalty (Dick & Basu, 1994;Harridge-March & Quinton, 2009;Harris & Goode, 2004) and those where loyalty is linked to responsible actions (Aksoy, 2013;Bertoli et al, 2020;Mercadé-Melé et al, 2018). This paper will use the (provided) definition of a Marketing Orientation (MO) as the underpinning for adopting a Sustainable Marketing Orientation (SMO) prior to undertaking segmentation.…”

Effects of dietary restraint on perceived healthfulness and purchase intention: the moderating effects of food type and product label

“…Consumers may be less willing to consume GM-labeled whole foods with no discernible benefit considering the potential asymmetric negative evaluation of a foods’ healthfulness. Premium private labels (PPLs) impact on Italian consumers’ willingness to purchase PPLs was examined by Bertoli et al (2020). There has been various research conducted on food labeling, but no research on effects of DR on PI nor consumption intention.…”