Purchase Precedes Trust in Retailer

Restoring consumer trust remains an uphill battle for retailers, as for many others. The rise of private label (PL) products can, in fact, create a new reputation and identity for the retailer. Before, it was believed that consumers purchased these cheap knockoffs because they trusted in the store. But, as PL products have grown in quality to rival that of leading brands, a surprising about-face has emerged: customer satisfaction with PL products is by far the most important driver of trust in the retailer. The author suggests some strategies that retail managers should keep in mind to develop trust and long-term loyalty using private labels. At the same time, large retailers can boost trust levels among consumer groups by tapping opportunities with local store brands ¿ as higher consumption is often associated with wide-ranging PL brands that are values based and community linked.