| dc.description.abstract | In the post-COVID 19 economic landscape, characterized by price sensitivity and evolving consumer preferences, retailers are increasingly prioritizing private labels to differentiate themselves and gain market share. Building on this trend, this paper investigates the influence of cross-category and multi-tier effects on the formation of customer loyalty towards private labels, utilizing a quantitative approach.
We examined purchasing data from a sample of 8,082 consumers in Norway, covering the period from April 2020 to May 2023. Through this analysis, we aimed to understand the customer loyalty formation and purchasing intentions towards private labels by observing their transitions between different subcategories and private label tiers.
Our findings revealed that consumers' prior experiences with both private labels and national brands have a significant impact on their loyalty formation and increased purchase intentions. Specifically, the results suggest that experiencing private labels increases customer loyalty towards them. On the other hand, loyal customers to national brands tend to remain loyal even during periods of economic contractions. Furthermore, our analysis provided valuable insights into the potential drivers of loyalty within private labels, including the influence of multi-tier and multi-category effects. | |
