Private label's role in customer loyalty creation for retail chains on the consumer market of Russia (case of international retailers Auchan and Prisma)

Abstract

The main goal of the research was to test the effect of private labels on the customer loyalty towards retail chains on the consumer market of Russia. For this goal, two international retail chain companies with developed private label portfolios were selected. Both companies are present on the consumer market of Russia. In order to reach the main research goal, following objectives were set: • To analyze private label types and their existing ways of segmentation; • To analyze various types of brand loyalty; • To analyze existing private label portfolio of Auchan and Prisma stores; • To measure Auchan and Prisma of Auchan and Prisma customers’ private label's, satisfaction, loyalty, attitude, awareness and store loyalty; • To test interconnection of Auchan and Prisma customers’ private label's, satisfaction, loyalty, attitude, awareness and store loyalty; • To see differences in private label loyalty for different types of Auchan's and Prisma's private labels; • Relying on obtained information develop recommendations for customer loyalty improvement for Auchan and Prisma stores. During the research concept of private label and brand loyalty were thoroughly analyzed. A detailed analysis of Auchan and Prisma retail chains and their private label portfolios was conducted. Relying on the created hypotheses a conceptual model was developed. The model was tested with the help of regression analysis based on the information gathered during conducted survey. As a result of analysis, tested links in the conceptual model were proved to be significant. It was proved that private labels positively affect customer loyalty towards retail chains. Also it was proved that private label satisfaction, attitude and awareness - play crucial role in generating loyalty towards private label products and their retail chains. Different private label types were proved to have different potential in terms of forming customer brand loyalty, most perspective types were distinguished. Relying on obtained results, recommendations concerning improvement of customer brand loyalty towards private labels and their corresponding retail chains Auchan and Prisma were developed.