Does the Commercial Format Influence the Effect that Store Brands’ Equity Has on Loyalty to the Retailer?

Abstract

This paper proposes a theoretical model that investigates the formation of store brandś equity (SBs) and its influence on the loyalty to the retailer considering the role that the commercial format chosen by the retailer (supermarkets versus hypermarkets) can have in this process. The results obtained reveal one important data regarding the proposed modelling between both groups. While the formation process of store brands’ equity is identical for supermarkets and hypermarkets, store brands’ equity as source of retailer loyalty is significantly more important for supermarkets. Important implications for management are derived from the results obtained. For supermarkets’ managers, generate preference for their own brands is a key issue, and, without underestimating the importance of a proper management of their own brands for hypermarkets’ managers, they should focus on the implementation of other marketing tools to generate loyalty to the retailer, such as a pleasant in-store experience, purchase convenience and a wide assortment.