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

Abstract

PurposeThis study aims to examine the moderating role of private label product type (organic vs non-organic) on the relationships between trust transfer, price fairness, perceived value and brand loyalty.Design/methodology/approachThe empirical data were gathered with the structured questionnaire from two groups of respondents who had previously purchased organic and conventional private label products. The direct, mediating and moderating effects were analysed with structural equation modelling.FindingsThe findings confirmed the trust transfer between the retail store and private label brand. The results revealed that both store trust and trust in private label brand positively influence price fairness and which, in turn, elicits higher perceived value. Perceived value was also found to influence private label brand loyalty. The multi-group analyses revealed that the magnitude of the trust transfer was accentuated by organic food private label. Furthermore, the relation between trust in private label brand, price fairness and perceived value was also greater in organic food private label.Originality/valueThis study utilized the trust transfer theory and equity theory as a theoretical foundation to provide novel insights into the moderating influence of private label product type on the relationships between the antecedents of private label brand loyalty. The results of the research can help retailers to develop successful private label brand marketing strategies.