Understanding brand loyalty of the store brand’s customer base

Abstract

Purpose The purpose of this paper is to attempt to understand the extent to which price consciousness and quality consciousness influence attitudinal loyalty to store brands (SBs) in different segments of consumers: heavy, medium and light buyers of SBs. SBs are currently consolidated among price-conscious consumers, but less established among the quality-conscious consumers. Design/methodology/approach After reviewing the literature and constructing a theoretical model, the authors performed a study on Spanish food products, a sector in which SBs have achieved a significant market share. They collected data through a personal survey and analyzed it using structural equations modeling, and they performed a multigroup analysis of heavy buyers, medium buyers and light buyers of SBs. Findings The results obtained alert retailers to the tremendous importance of price vs quality in the formation of SB value and loyalty to SBs among heavy buyers of these brands, show the balance between price and quality as components of SB value and generators of loyalty among medium buyers and recognize the need to strengthen the image of SB quality to reinforce SBs’ value and smart shopping associations to increase light buyers’ loyalty to SBs. Originality/value The study contributes new evidence and knowledge on SB loyalty among consumers who show different usage of these brands (heavy, medium and light buyers). It then assesses the short- and long-term value of each segment of customers for the retailer and recommends retail strategies adapted to each segment.