The value of relationship marketing in expanding private labels

Abstract

The goal of relationship marketing is to create mutually beneficial partnerships that last for the long haul. The current research examines the use of private labels in conventional product categories as a means of fostering productive partnerships within the convenience foods industry. The study's key contribution is the application of the relationship method to the puzzle of why customers are loyal to private label products and why store brand expansion tactics are effective. This study, which used EQS software and a sample of 434 people, found that consumers' propensity to buy private labels in new categories like durables was influenced by their experience with and satisfaction with private labels in the convenience goods they already purchased. Retailers' long-term success depends on their capacity to cultivate the trust and commitment of their customers, which in turn generates loyalty.