Changing Face of Food Private Label and Category Management:The Significance of Customer Satisfaction and Loyalty

Abstract

Category management is a relevant process which drives the relationship between manufacturer and retailer. In the prevailing retail scenario where small and big player are striving to compose a differentiation uniquely associated with store image and store brand, category management is bonding grid. Category management is an effective way to utilize market data to help increase the sales. The purpose of this paper is to determine how category management in food private label can help in building store loyalty. A survey of shoppers measured attitudes toward individual stores' images and store brand perceptions, a regression analysis demonstrates a positive relationship between consumers' perceptions of individual store own brands and their associated store's image dimensions and attitudes toward store brands in general. The results of this study suggest that category management enhance customer satisfaction by focusing more on product availability, presentation and customer service rather than the price.