The Impact of Retailer Brand Name Substitution on Consumer Trust

Abstract

Purpose: The aim of this article is to understand the impact of retailer brand name substitution on consumer trust. Theoretical Framework: Drawing on existing research on product brand substitution, the paper introduces variables that could influence consumer trust in situations where a brand name is substituted. Design/Methodology/Approach: To achieve this goal, a quantitative study was conducted among 351 Tunisian consumers to test the hypotheses and quantify the impact of each variable. Findings: The results of this research highlight three variables that can contribute to building consumer trust during a retailer brand name substitution, namely: (1) communication about the change; (2) perceived similarity and (3) perceived benefits derived from the change. The results also indicated that consumer attachment has a moderating effect on the relationship between trust and its determinants. More precisely, the stronger the attachment to the initial retailer brand, the more the consumer's trust in the brand decreases after the brand substitution. Research, Practical & Social implications: This paper assists practitioners in identifying the key success determinants that can facilitate the transfer of consumer trust from the old retailer brand to the new one. It provides guidance for a successful retailer brand name substitution. Originality/Value: This research fulfils an identified need to study how consumers’ trust in a brand can be transferred successfully in the case of a retailer brand name substitution.