Premium private label: how product value, trust and category involvement influence consumers willingness to buy
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Premium private label: how product value, trust and category involvement influence consumers willingness to buy Giuseppe Bertoli1 · Bruno Busacca2 · Marta Imperato3 Received: 2 April 2020 / Accepted: 21 July 2020 © The Author(s) 2020
Abstract Premium private labels (PPLs) are applied to products with distinctive features with prices equal, and sometimes even higher, than those of the category leaders. The objective of the retailers is to obtain, in the minds of consumers, the same positioning of national brands. So, PPLs are becoming more and more crucial for competitive advantage and store loyalty. Starting from this evidence, this paper aims to contribute to the advancement of knowledge on the subject, analyzing the impact of consumer trust in retailer, consumer involvement and product value on consumer willingness to buy PPLs. Data for hypotheses testing were collected through a 2 × 2 × 2 experiment between subjects, in which different groups of consumers were randomly exposed to different experimental conditions. Results show that: (a) consumer trust in retailer positively influences consumer’s willingness to buy in case of products with hedonic value; (b) consumer involvement has a significant main effect and there is a significant two-way interactions between trust and involvement; (c) when consumer trust in retailer is low, non-involved consumers show a greater willingness to buy the PPL for products with utilitarian rather than hedonic value. Keywords Premium private labels · Utilitarian value · Hedonic value · Trust · Involvement
* Giuseppe Bertoli [email protected] Bruno Busacca [email protected] Marta Imperato [email protected] 1
Department of Economics and Management, University of Brescia, Contrada S. Chiara, 52, 25126 Brescia, Italy
2
Department Marketing, Bocconi University, Via Roentgen, 1, 20136 Milan, Italy
3
Jacala S.p.A., Corso di Porta Romana, 15, 20136 Milan, Italy
13
Vol.:(0123456789)
Italian Journal of Marketing
1 Introduction Although the revenue market share of private label in Italy (20.1%) is still lower than in other European countries (on average 26%, but in several countries it exceeds 40%—Nielsen 2018), their strategic role for retail companies is increasingly important (Sansone 2016; Fornari 2018). This is clearly highlighted by the growing depth and breadth of private label portfolios (Kumar and Steenkamp 2007; Geyskens et al. 2010), within which premium private labels (PPLs) are becoming more and more crucial for competitive advantage and store loyalty. According to IRI data (2020), their incidence on total Italian store brands revenues has now exceeded 20%, compared to 8% in 2010. PPLs are applied to products with distinctive features (in terms of quality, origin, safety, variety, authenticity, sustainability, ethics, etc.) with prices equal, and sometimes even higher, than those of the category leaders1 (Feetham and Gendall 2013; Cristini et al. 2018; Martinelli 2018). The objective of retailers is to obtain, in the minds of these cons
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