Examining the antecedents and consequences of private label brand consumers’ value co-creation behaviour and customer engagement: a study within the context of retailing in the United Kingdom

This research investigates how involvement, perceived risk, product quality, corporate image, brand image, emotional value, and brand attachment influence value co-creation behaviour and customer engagement. It also examines how customer engagement impacts brand loyalty, participation, word-of-mouth, and trust. Despite extensive research on value co-creation and customer engagement across various contexts to extend the theory and conceptualisation, there has been limited attention on value co-creation behaviour and customer engagement among private label brand consumers.

This research explores four key areas. Firstly, it examines how involvement with the brand, perceived risks, product quality, corporate image and store image influence value co-creation behaviour and customer engagement. Secondly, it explores how emotional value (the perceived benefits beyond the functional aspects) and emotional attachment to the private label brand influence both value co-creation behaviour and customer engagement. Thirdly, the research considers whether the specific supermarket plays a role in these relationships (moderating effect). In other words, does the choice of supermarket influence how these factors affect consumer behaviour towards private label brands? Finally, the research explores the consequences of strong customer engagement with private label brands. It examines how engagement impacts on brand loyalty, participation in brand activities, positive word-of-mouth recommendations, and overall brand trust.

Building on Social Exchange Theory (SET) to address the research questions, this study employed a mixed-method approach. A thorough literature review was conducted to develop robust measurement scales, followed by a qualitative study and a quantitative study. The qualitative study served two key purposes. First, it aimed to gain a deeper understanding of the research phenomenon, which has received limited prior attention. This exploration allowed the researcher to identify potential new measurement items based on participant comments during interviews and focus groups. Second, the qualitative data helped assess the validity of the initial measurement scales developed from the literature review. Third, by conducting the qualitative phase before the quantitative study, the research ensured a strong foundation for the main investigation. The quantitative data, collected through 1010 questionnaires, was then analysed using Structural Equation Modelling (SEM) via IBM SPSS Amos 29.0.0 (AMOS). The software facilitated the evaluation of how well the scales captured the intended constructs and tested the relationships between the constructs.

This research yielded several key insights into private label consumer behaviour. Firstly, factors like involvement with the brand, positive perceptions of the corporate image, and strong brand attachment all contribute to increased customer engagement. Secondly, high levels of customer engagement lead to positive outcomes for the brand, including increased word-of-mouth recommendations, participation in brand activities, and stronger brand trust amongst private label consumers. The SEM results also revealed a moderating effect of supermarket choice. This suggests that the influence of emotional value, brand attachment, corporate image and participation on customer engagement may vary depending on the specific supermarket where the consumer shops. In other words, the supermarket choice itself may play a role in how these factors affect consumer behaviour.

Based on the results, there are numerous theoretical and managerial implications. Firstly, this study addresses a significant research gap in the literature. Additionally, it provides valuable insights for managers in the private label brand industry, with potential applications in other industries. The findings underscore the importance of customer engagement in enhancing brand trust, participation, and positive word-of-mouth, guiding strategies to achieve these outcomes. The study reveals that private label brands should actively foster a positive corporate image that resonates with their target customer segments' values. Further, while perceived emotional value may not directly influence engagement, building a strong emotional attachment to the brand is crucial. This research also identified the significant role of customer experience. Being an experienced customer of a particular retailer can influence the factors that drive private label brand consumers' engagement.