Premium Private Labels and PDO/PGI Products: Effects on Customer Loyalty

The paper analyses the role that Premium Private Labels (PPLs) exerts on customer loyalty to the retailer, intended as behavioral and attitudinal. Specifically, the study investigates the mediating role of customer loyalty to the PPL (PPLL), highlighting its main antecedents. The paper contributes to the literature on store brands and customer loyalty in a twofold way. Firstly, it responds to the call for more research on customer loyalty to the retailer as a brand, a topic requiring more empirical evidence compared to store loyalty. Secondly, as many PPLs consist in local products labelled with a PDO/PGI brand too as vehicle to increase the per-ceived value of this store brand tier, the study would investigate the impact of this brand guarantee on PPLs proneness.
A survey was performed on a sample of retail customers. All the postulated hypotheses were confirmed applying SEM. Willingness to pay an extra price for a PPL product (PPL WP) resulted as the main antecedent of PPLL, followed by PPL perceived quality (PPLQ) and then by the guarantee that the PDO/PGI label offers to PPL buyers (TPG). Residual the effect of PPL Uniqueness (PPLU). Significant and positive resulted the effect of PPLL on both attitudinal and behavioral loyalty to the retailer. Indirect effects were confirmed too.