Customers' comparative loyalty to retail and manufacturer brands

Abstract

PurposeOwing to the increasing market presence and financial success of retail brands, this study seeks to examine the comparative influence of manufacturer brands and retail brands on customers' purchase behaviors.Design/methodology/approachThe survey was administered to 1,120 samples (of which 200 were returned), with data analyzed using structural equation modeling to test the study's hypotheses.FindingsThe study revealed that customers' loyalty to retail brand(s) has greater influence on their purchase behavior than manufacturer brand(s). It also revealed that attitude toward store brands directly influences one's propensity to switch to retail brands, and mediates relationships between loyalty to manufacturer/retail brands and one's propensity to switch to retail brand(s).Research limitations/implicationsOnly one type of retailer was employed in the study. The samples are individuals that have either purchased an item(s) from the retailer, or have at least visited one of their retail sites. The samples had relatively high disposable incomes.Practicable implicationsThe study found that retailers may need dissimilar marketing strategies for customers loyal to manufacturer brands and customers loyal to retail brands.Originality/valueThe study provides new and empirical insight into the ongoing debate of the comparative importance of manufacturer and retail brands.