Business Excellence, Vol. 13 No. 2, 2019.
Original scientific paper
https://doi.org/10.22598/pi-be/2019.13.2.31
DETERMINANTS INFLUENCING CONSUMER'S LOYALTY TOWARDS A PRIVATE BRAND
Adi Alić
orcid.org/0000-0002-9623-6872
; School of Economics and Business Sarajevo, Trg oslobođenja – Alija Izetbegović 1, 71 000 Sarajevo, Bosnia and Herzegovina
Almir Peštek
; School of Economics and Business Sarajevo, Trg oslobođenja – Alija Izetbegović 1, 71 000 Sarajevo, Bosnia and Herzegovina
Ehlimana Merdić
; Robot General Trading Co d.o.o., Rajlovačka cesta 41, 71 000 Sarajevo, Bosnia and Herzegovina
Abstract
In modern consumer society, consumers become all the more demanding with
the right to possess the final statement on selection of a product, and thus the role of a
brand as a means of communication is the key, since brands are powerful enough to
attract and keep a consumer. Consumers create a relationship with a brand based on
quality guarantee and positive experience. The main purpose of this paper is to explore
determinants influencing consumer’s loyalty towards a private brand. The research is
based on private brand R-Time owned by the trade chain Robot. Data were collected
through a field survey, and the sample consisted of 439 respondents. Data were analyzed
using SEM analysis. The results of the survey show that the determinants of price and quality perception affect consumers' loyalty towards a product of the private brand RTime,
whereas there is no difference among tested ethnocentric and non-ethnocentric
group of consumers. Building on our results, retailers are encouraged to scrutinize both
price and quality perception of their own brands, in order to build long-term consumerbrand
loyalty. The novelty and value of this research is reflected in the fact that the given
results confirm that the size of the effect of price and quality perception on private brand
loyalty among ethnocentric and non-ethnocentric consumers is not significant, so there
is no need for retailers to focus on highlighting the brand’s domestic origins. The main
limitations of the study are related to data collection process, in terms of geographical
coverage and product category. These limitations constitute areas for future research.
Keywords
brand; private brand; consumers; R-Time; Bosnia and Herzegovina
Hrčak ID:
229684
URI
Publication date:
12.12.2019.
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