The role of consumers' attitude towards economic climate in their reaction to ‘PL-only’ assortments: Evidence from the United States and Spain

Gázquez-Abad, Juan Carlos, Martínez-López, Francisco J. and Irene Esteban-Millat

Journal of Retailing and Consumer Services, 2017, vol. 34, issue C, 340-348

Abstract: Retailers’ assortment rationalisation strategies have found an “ally†in the current global economic crisis. Indeed, retail boycotts of individual brands in economic recession contexts are not uncommon in the CPG industry. In fact, many of the consumers who began buying PLs during the economic recession are continuing their PL behaviour post-recession. So, what is the role of the economic climate in consumers’ reaction– in terms of store loyalty – to retailers’ NB delisting decisions? Is it so relevant? This paper examines how consumers’ attitude towards the economic climate influences his/her reaction to retailers’ strategy of offering ‘PL-only’ assortments in the context of an economic slump (Spain) compared to a context of economic recovery (U.S.). To do so, we have designed a controlled online experiment for two large consumer panels in the Spanish and the U.S. markets. Our results suggest that consumers’ acceptance of ‘PL-only’ assortments is a separate phenomenon rather than merely being a “consequence†of the current economic situation. Nevertheless, in an economic recovery, such ‘PL-only’ assortments do not appear to be the best strategy.

Keywords: Assortment; Private labels; National brands; Economic climate (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joreco:v:34:y:2017:i:c:p:340-348

DOI: 10.1016/j.jretconser.2016.07.012

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