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Triggering brand switching in online stores: The effectiveness of recommendations for private labels versus national brands

Author

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  • Kobuszewski Volles, Barbara
  • Van Kerckhove, Anneleen
  • Geuens, Maggie

Abstract

As consumers increasingly shift toward online grocery shopping, reconsiderations of traditional marketing tactics become necessary, both to test whether they remain applicable online and to find new options that are specific to online channels. One such novel tactic might entail recommending private-label alternatives for products that consumers have added to their shopping carts. Three experiments indicate that when consumers receive recommendations to switch out a chosen brand for an alternative, they are more likely to switch if the recommended product is a private-label rather than national brand. The recommendations seemingly serve as quality signals, and private-label offerings have more to gain from such quality signals than national brands. This effect is prominent for consumers with low brand loyalty levels; it becomes attenuated for very brand loyal consumers though.

Suggested Citation

  • Kobuszewski Volles, Barbara & Van Kerckhove, Anneleen & Geuens, Maggie, 2023. "Triggering brand switching in online stores: The effectiveness of recommendations for private labels versus national brands," Journal of Business Research, Elsevier, vol. 164(C).
    • Handle: RePEc:eee:jbrese:v:164:y:2023:i:c:s0148296323003788
    DOI: 10.1016/j.jbusres.2023.114020
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    Citations

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    Cited by:

    1. Dawood Yahyavi & Ata Allah Taleizadeh & Park Thaichon, 2024. "National brands versus store brands: retailer fight against national brands to improve store brands via a dynamic discount pricing strategy," Operational Research, Springer, vol. 24(4), pages 1-36, December.
    2. Li, Yongjian & Chu, Mingsen & Bai, Xuanming, 2024. "To fight or not? product introduction and channel selection in the presence of a platform’s private label," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 181(C).
    3. Verstraeten, Julie & Heeremans, Eva & Geuens, Maggie & Vermeir, Iris, 2023. "How online grocery shopping drives private label food purchases," Journal of Business Research, Elsevier, vol. 167(C).

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