How can an organic label help a private label?

Abstract

Purpose This paper aim to investigate how organic labeling impacts perceived value for money (PVFM) as well as attitudinal and behavioral brand loyalty for private label brands (PLBs). This impact is tested for different product categories and retailers. Design/methodology/approach Two online experiments are conducted with different product categories (i.e. eggs and chocolate) and different retailers (i.e. Auchan and Carrefour). For each experiment, a multivariate analysis of covariance with brand type (i.e. PLBs and organic PLBs) as the independent variables, the PVFM and brand loyalty as the dependent variables as well as consumers’ characteristics, involvement with organic products and attitudes toward the retailer as the covariates is run. Findings On aggregate, organic PLBs prompt a higher PVFM as well as a higher attitudinal and behavioral loyalty than the PLBs. These results are consistent across the above-mentioned product categories and retailers. Research limitations/implications This study advances knowledge on organic labeling for the PLBs. Practical implications Retailers gain insights on the perceptions and behaviors toward organic PLBs versus standard PLBs. Originality/value This study tests how an organic label impacts the PVFM and brand loyalty for the PLBs.

Trust transfer, price fairness and brand loyalty: the moderating influence of private label product type

“…Furthermore, consumer evaluations of the given extra price should be supported with the benefits of these products, which may elicit higher value. A recent study, which particularly focused on private labels pointed out that organic private label brands provide greater perceived value, and loyalty than non-organic private label brand (Casteran and Ruspil, 2021). New or developed product attributes such as quality, novelty and distinct features provide consumers better alternatives (Huang and Huddleson, 2009).…”

“…Given the importance of organic food consumption, studies primarily focusing on organic private label food products are meagre in the retailing literature (Ngobo and Jean, 2012; Casteran and Ruspil, 2021). Additionally, prior research has overlooked the comparison between organic and non-organic private label brands under the trust transfer, price fairness and brand loyalty mechanisms.…”

Exploring the holistic nature of a multi-level retail brand: a scoping review

“…Hwang and Kim, 2022), perceived risk (Diallo, 2012) and value-for-money (e.g. Casteran and Ruspil, 2021). This could result from two reasons.…”

A influência da estratégia digital na performance do private label

“…Deste modo, as marcas procuram áreas de mercado pouco exploradas e fabricam produtos que preencham essas lacunas, chegando assim, com mais facilidade ao consumidor (Gil-Cordero et al, 2020;Gielens et al, 2021). Como por exemplo produtos orgânicos em private labeling (Casteran & Ruspil, 2021).…”