Journal of Business Research 67 (2014) 667–672
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Journal of Business Research
Relationship marketing management: Its importance in private label extension☆
Maria José Miquel-Romero a,⁎, Eva María Caplliure-Giner a,⁎, Consolación Adame-Sánchez b a
Department of Marketing, Juan José Renau Piqueras, University of Valencia, Av. Tarongers s/n, 46022 Valencia, Spain Department of Business Management, Juan José Renau Piqueras, University of Valencia, Av. Tarongers s/n, 46022 Valencia, Spain
a r t i c l e
i n f o
Received 1 April 2013
Received in revised form 1 October 2013
Accepted 1 November 2013
Available online 26 December 2013
a b s t r a c t
Relationship marketing aims to generate long-term proﬁtable relationships between partners. In the context of the convenience goods market, the present study considers private labels in traditional categories as a tool to develop effective relationships. The main contribution of the study is the use of the relationship approach to explain private label loyalty and the success of store brand extension strategies. Drawing upon a sample of 434 individual and using EQS software, this study shows that customer experience, satisfaction, trust, and commitment to private labels play an important role in customer loyalty toward private labels in convenience goods, increasing consumers' propensity to buy private labels in new categories such as durable goods. Generating trust and commitment, which ultimately result in loyalty, is therefore a strategic goal and a source of longterm proﬁtability for retailers. © 2013 Elsevier Inc. All rights reserved.
Retailers are aware that a strong brand is a source of competitive advantage for any company. In recent years, private labels (PLs) are becoming very important for retailers as a means of differentiating themselves from competitors, to grow through PL extension, and to strengthen their relationships with consumers (e.g., Dhar & Hoch, 1997; Narasimhan & Wilcox, 1998; Pepe, Abratt, & Dion, 2011). The Private Label Manufacturers Association (PLMA, 2013) deﬁnes PL products as all merchandise sold under a retailer's brand, which may be the chain's own name or a brand name that the retailer uses exclusively for their stores. Across Europe, private labels are becoming very popular among shoppers, with 46% of consumers frequently purchasing PLs (PLMA, 2013). Manufacturer and retailer brands compete for consumer loyalty within the same product categories (BustosReyes & González-Benito, 2008; Grewal, Levy, & Lehmann, 2004). PLs exist in almost every category of grocery, drugstore, and perfumery products, and retailers are extending their PLs to new categories such as shopping products (textiles, household appliances, and electronic devices), and even services (ﬁnancial, insurance, and mobile services). To counter the advance of PLs, Grossman (1998) advises manufacturers to exploit relationship marketing (RM), as a mechanism to ☆ The authors gratefully acknowledge comments by James W. Taylor (California State University, USA) and Oscar González (University of Salamanca, Spain). The authors alone are responsible for any limitations and errors in the study and the paper. ⁎ Corresponding authors.
E-mail addresses: firstname.lastname@example.org (M.J. Miquel-Romero), email@example.com (E.M. Caplliure-Giner), firstname.lastname@example.org (C. Adame-Sánchez). 0148-2963/$ – see front matter © 2013 Elsevier Inc. All rights reserved. http://dx.doi.org/10.1016/j.jbusres.2013.11.025
provide value added to the customer. Nowadays, retailers implement relationship strategies to retain customers. Customer RM focuses on developing mutually valuable long-term relationships with customers (Ravald & Grönross, 1996) on the basis of the core variables of satisfaction, trust, and commitment (Payne,...
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