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Retailer premium own‐brands: creating customer loyalty through own‐brand products advantage

Ying Huang (Division of Retailing and Consumer Sciences, University of Arizona, Tucson, Arizona, USA)
Patricia Huddleston (Department of Advertising, Public Relations, and Retailing, Michigan State University, East Lansing, Michigan, USA)

International Journal of Retail & Distribution Management

ISSN: 0959-0552

Article publication date: 9 October 2009

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Abstract

Purpose

The purpose of this paper is to propose a theoretical model which investigates antecedents, consequences, and contingency factors of retailer own‐brand product advantage. The paper develops propositions and managerial implications.

Design/methodology/approach

It summarizes an empirical work related to the key constructs of the theoretical model and identifies gaps in the literature. The paper provides definitions of each antecedent and outcome of retailer own product advantage and discusses managerial implications of the proposed framework.

Findings

Retailers who have higher degree of customer participation, innovation, and brand orientations are likely to have a stronger own‐brand product advantage. In turn, those retailers are more likely to have loyal customers and superior own‐brand financial performance. These relationships will be influenced by retailer image, market power, number of national brands and category size, technology complexity, and competitive intensity.

Research limitations/implications

Understanding the key outcomes of own‐brand product advantage will facilitate management's evaluation of current retail product development strategies. If outcomes of the current own‐brand strategy are not satisfactory, an assessment of customer participation, innovation, and brand orientation effectiveness may be warranted.

Originality/value

The authors are the first to define a retailer premium own‐brand. Based on the theory of resource‐based view, it is proposed a new theoretical framework that pinpoints three business orientations as antecedents of and customer loyalty and brand performance as consequences of retailer own‐brand product advantage. The framework also suggests some contingency factors at retailer, category, and market levels.

Keywords

Citation

Huang, Y. and Huddleston, P. (2009), "Retailer premium own‐brands: creating customer loyalty through own‐brand products advantage", International Journal of Retail & Distribution Management, Vol. 37 No. 11, pp. 975-992. https://doi.org/10.1108/09590550910999389

Publisher

:

Emerald Group Publishing Limited

Copyright © 2009, Emerald Group Publishing Limited

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