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  The IUP Journal of   Brand Management :
Determinants of Customer Loyalty: A Study in the Context of Private Label Apparel Stores in India
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The highly competitive environment in India, with the advantage of organized retail growth, has produced the need for loyal consumers for each store. In order to be competitive, retailers must identify the determinants of customer loyalty and the perceived importance of such determinants to the consumer. The organized retail chains are involved in qualitative store brand promotion in all categories of products through their multi-chain outlets and innovative format strategies. This paper investigates the perceived importance of consumer loyalty with reference to apparel shopping. It further investigates the determinants of loyalty in the organized apparel retail store context. A sample of 220 apparel shoppers was surveyed using a self-administered questionnaire. To test the importance of determinants of loyalty, the binary logit model was used. The findings contribute to framework development and organizing strategy for apparel stores.

 
 
 

With more and more stores selling similar products, consumers expect fulfillment through a unique shopping experience and a different product from each store. If a consumer wants to purchase any apparel product, he has lots of options to purchase it from stores like Westside, Brand Factory, Big Bazaar, Star India Bazaar, Reliance Mart, Lifestyle Stores, Reliance Trends, etc. When it comes to shopping apparel products, each of the above retailers has something unique to offer. To communicate the distinctiveness and speciality of their offering to the consumers, the stores have exclusive branding strategies, called private label, which recommend the store to consumers at the time of purchase.

In order to compete with national brands, retailers have developed their own private brands (Kumar et al., 2007). Private brands were introduced in order to provide value to customers and provide benefits to retailers with the additional tool of bargaining with national brand manufacturers. Private brands offer competitive advantage to the stores in terms of differentiation, supply chain management, cost management, and brand loyalty (Bruer et al., 2005). A few organized retailers have established the brand image of their retail establishment in such a way that the store is implied as a brand (Grewal et al., 2004; and Grewal and Levy, 2009). Retailers adopting this concept ensure that consumers view them as a brand house and not just a pickup point of different available brands. Retailers of most countries develop a positive brand image in terms of price that they offer, promotion they create and services they deliver, along with the brands they sell (Ailawadi and Keller, 2004). In an AC Nielsen consumer survey in 2005, 56% Indians agreed that private labels are a good option in comparison to national brands.

 
 
 

Brand Management Journal, Determinants of Customer Loyalty, Context of Private Label, Westside, Brand Factory, Big Bazaar, Star India Bazaar, Reliance Mart, Lifestyle Stores, Reliance Trends, Apparel Stores in India.