Research on the Marketing Strategies of Private Label Impacts on Customer Loyalty and Sense of Novelty——A case study of Trader Joe’

Abstract

More and more grocery stores employed their private label on some products to earn more profit margins, but not all of them have successfully survived under competition from other store brands. This research takes Trader Joe’s as a case study to investigate the major factors that private label strategy impacts on customer loyalty and the sense of novelty of customers. Previous research mainly focused on private label strategy with customer satisfaction or loyalty. However, a sense of novelty is rarely explored in previous research on private label strategy. We use review coding of Trader Joe’s customer comments on Trustpilot to investigate central aspects determining private labels’ impacts on customer loyalty and a sense of novelty. We found that friendly staff, affordable price, and high-quality products mainly enhance customer loyalty. The variety/uniqueness of products and accommodating decoration of store environments contribute to the customer’s sense of novelty.