IDEAS home Printed from https://ideas.repec.org/a/ags/frraes/188258.html
   My bibliography  Save this article

Measures of store loyalty in French food retailing

Author

Listed:
  • Bergès-Sennou, Fabian
  • Orozco, Valérie

Abstract

Store loyalty is an important issue for retailers since it defines one way in which consumers are attached to stores. However, store loyalty is not unidimensional and there are different ways of measuring it. After surveying the marketing literature on how to assess ’store loyalty’, we compute different store loyalty indexes with French homescan database on consumer purchases (9 000 households) coupled with a store database that allows us to control for supply parameters, including store location and accessibility. We find that the store loyalty index, computed on more than 250 goods, differs greatly across chain stores. Moreover, when households increase their expenditures in a store, it does not necessarily mean that the store benefits from more loyal patronage. We also investigate the relationship between store loyalty and likelihood of buying private labels (PL). Results show that a PL expenditure increase does not translate into higher store loyalty (whatever the index studied).
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Bergès-Sennou, Fabian & Orozco, Valérie, 2010. "Measures of store loyalty in French food retailing," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 91(3).
    • Handle: RePEc:ags:frraes:188258
    DOI: 10.22004/ag.econ.188258
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/188258/files/91-3-261-277.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.188258?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Mills, David E, 1995. "Why Retailers Sell Private Labels," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 4(3), pages 509-528, Fall.
    2. Bustos-Reyes, César Augusto & González-Benito, Óscar, 2008. "Store and store format loyalty measures based on budget allocation," Journal of Business Research, Elsevier, vol. 61(9), pages 1015-1025, September.
    3. Peter T. L. Popkowski Leszczyc & Fusun F. Gonul, 1996. "Multiple Ways of Measuring Brand Loyalty," Canadian Journal of Economics, Canadian Economics Association, vol. 29(s1), pages 494-497, April.
    4. Gilles Laurent & Bernard Dubois, 1999. "A Situational Approach to Brand Loyalty," Post-Print hal-00458443, HAL.
    5. William P. Putsis Jr. & Ronald W. Cotterill, 1999. "Share, price and category expenditure-geographic market effects and private labels," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 20(4), pages 175-187.
    6. K. Sudhir & Debabrata Talukdar, 2004. "Does Store Brand Patronage Improve Store Patronage?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 24(2), pages 143-160, March.
    7. Beggs, Alan W, 1994. "Mergers and Malls," Journal of Industrial Economics, Wiley Blackwell, vol. 42(4), pages 419-428, December.
    8. Nathalie Demoulin & Pietro Zidda, 2008. "Les cartes de fidélité fidélisent-elles la clientèle ?," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(2), pages 35-41.
    9. Fabian Bergès-Sennou, 2006. "Store loyalty, bargaining power and the private label production issue," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 33(3), pages 315-335, September.
    10. Stéphane Caprice, 2004. "Fidélité à la marque, fidélité à l'enseigne: une analyse des déterminants des rapports de force entre producteurs et distributeurs," Économie rurale, Programme National Persée, vol. 283(1), pages 72-84.
    11. Bergès-Sennou Fabian & Bontems Philippe & Réquillart Vincent, 2004. "Economics of Private Labels: A Survey of Literature," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 2(1), pages 1-25, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sckokai, Paolo & Soregaroli, Claudio, 2008. "Impact of private label development across retail formats: Evidences from the Italian dairy market," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 87(2).
    2. Gabrielsen, Tommy Staahl & Sorgard, Lars, 2007. "Private labels, price rivalry, and public policy," European Economic Review, Elsevier, vol. 51(2), pages 403-424, February.
    3. Mercedes Martos-Partal & Óscar González-Benito, 2011. "Store brand and store loyalty: The moderating role of store brand positioning," Marketing Letters, Springer, vol. 22(3), pages 297-313, September.
    4. Wu, Lifang & Yang, Wei & Wu, Jessica, 2021. "Private label management: A literature review," Journal of Business Research, Elsevier, vol. 125(C), pages 368-384.
    5. Raj Sethuraman, 2009. "Assessing the External Validity of Analytical Results from National Brand and Store Brand Competition Models," Marketing Science, INFORMS, vol. 28(4), pages 759-781, 07-08.
    6. Johansen, Bjørn Olav, 2012. "Private Labels, Rent Shifting And Consumer Welfare," Working Papers in Economics 02/12, University of Bergen, Department of Economics.
    7. Dubois, Pierre & Jodar-Rosell, Sandra, 2010. "Price and Brand Competition between Differentiated Retailers: A Structural Econometric Model," IDEI Working Papers 604, Institut d'Économie Industrielle (IDEI), Toulouse.
    8. Cho, Young Sang & Rha, Hye-Su & Burt, Steve, 2015. "The impact of customer awareness of manufacturer name disclosure on retail brand attitudes and loyalty in Korea," Journal of Retailing and Consumer Services, Elsevier, vol. 22(C), pages 128-137.
    9. Bonanno Alessandro & Lopez Rigoberto A., 2005. "Private Label Expansion and Supermarket Milk Prices," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 3(1), pages 1-18, February.
    10. Alessandro Bonanno & Rigoberto A. Lopez, 2004. "Private Labels, Retail Configuration, and Fluid Milk Prices," Food Marketing Policy Center Research Reports 082, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    11. Venturini, Luciano, 2006. "Vertical competition between manufacturers and retailers and upstream incentives to innovate and differentiate," 98th Seminar, June 29-July 2, 2006, Chania, Crete, Greece 10050, European Association of Agricultural Economists.
    12. Irz, Xavier & Mazzocchi, Mario & Réquillart, Vincent & Soler, Louis-Georges, 2015. "Research in Food Economics: past trends and new challenges," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 96(01), pages 187-237, March.
    13. Tong, Yang & Xiao, Tiaojun, 2024. "National or third-party manufacturer? Sourcing strategy of a dominant platform: Signaling game's perspective," Omega, Elsevier, vol. 124(C).
    14. Fabian Bergès & Zohra Bouamra-Mechemache, 2012. "Is producing a private label counterproductive for a branded manufacturer?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 39(2), pages 213-239, April.
    15. Bonnet, Céline & Bouamra-Mechemache, Zohra, 2020. "Empirical methodology for the evaluation of collusive behaviour in vertically-related markets: An application to the “yogurt cartel” in France," International Review of Law and Economics, Elsevier, vol. 61(C).
    16. Inderst, Roman & Obradovits, Martin, 2020. "Why Brand Manufacturers Should Take Loss Leading Seriously," EconStor Preprints 253663, ZBW - Leibniz Information Centre for Economics.
    17. Hasnas, Irina & Wey, Christian, 2015. "Full versus partial collusion among brands and private label producers," DICE Discussion Papers 190, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    18. Christophe Bontemps & Valérie Orozco & Vincent Réquillart, 2008. "Private Labels, National Brands and Food Prices," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 33(1), pages 1-22, August.
    19. Iván Valdés de la Fuente & Gonzalo Escobar Elexpuru, 2022. "Is it rational for a large-retailer to sell an own-brand product similar to the branded product of a large manufacturer? A Vertical Product Differentiation Model," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, vol. 90(3), pages 77-109, February.
    20. Fabian Bergès & Philippe Bontems & Vincent Réquillart, 2009. "L'impact économique du développement des marques de distributeurs," Economie & Prévision, La Documentation Française, vol. 0(3), pages 41-56.

    More about this item

    Keywords

    Agribusiness;

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D3 - Microeconomics - - Distribution
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:frraes:188258. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/inrapfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.