Retailer premium ownbrands creating customer loyalty through ownbrand products advantage

Purpose The purpose of this paper is to propose a theoretical model which investigates antecedents, consequences, and contingency factors of retailer ownbrand product advantage. The paper develops propositions and managerial implications. Designmethodologyapproach It summarizes an empirical work related to the key constructs of the theoretical model and identifies gaps in the literature. The paper provides definitions of each antecedent and outcome of retailer own product advantage and discusses managerial implications of the proposed framework. Findings Retailers who have higher degree of customer participation, innovation, and brand orientations are likely to have a stronger ownbrand product advantage. In turn, those retailers are more likely to have loyal customers and superior ownbrand financial performance. These relationships will be influenced by retailer image, market power, number of national brands and category size, technology complexity, and competitive intensity. Research limitationsimplications Understanding the key outcomes of ownbrand product advantage will facilitate management's evaluation of current retail product development strategies. If outcomes of the current ownbrand strategy are not satisfactory, an assessment of customer participation, innovation, and brand orientation effectiveness may be warranted. Originalityvalue The authors are the first to define a retailer premium ownbrand. Based on the theory of resourcebased view, it is proposed a new theoretical framework that pinpoints three business orientations as antecedents of and customer loyalty and brand performance as consequences of retailer ownbrand product advantage. The framework also suggests some contingency factors at retailer, category, and market levels.