Quality Assurance Labels as Drivers of Customer Loyalty in the Case of Traditional Food Products

Food Quality and Preference, Vol 25, No. 2, 2012

Posted: 15 May 2012

See all articles by Polymeros Chrysochou

Polymeros Chrysochou

Aarhus University - Department of Business Administration

Krystallis Athanasios

Independent

Georges Giraud

affiliation not provided to SSRN

Multiple version iconThere are 2 versions of this paper

Date Written: May 15, 2012

Abstract

This paper examines the role of quality assurance labels as drivers of customer loyalty in the case of traditional food products. More specifically, it investigates whether quality assurance labels, such as the Designation of origin labels (DOLs), perform as better drivers of loyalty in comparison to other brand-related attributes, such as price and brand type, and if brands carrying a DOL exhibit higher loyalty levels in comparison to brands that do not carry any DOL label. Scanner data were collected from a panel of 789 French customers recording purchases over a year within a traditional food product category. The polarisation index φ (phi) was used as a measure of loyalty. The findings show that in comparison with other extrinsic product attributes, DOLs constitute less important drivers of loyalty. However, brands carrying a DOL in comparison to brands that do not carry any DOL label exhibit higher levels of loyalty. The findings provide useful directions for the implementation of marketing strategies and management of product portfolios of product categories in which the marketing mix is often built on product attributes other than the brand name.

Keywords: Designation of origin labels, Qualityassurancelabels, Loyalty, Polarisation, Scanner data

Suggested Citation

Chrysochou, Polymeros and Athanasios, Krystallis and Giraud, Georges, Quality Assurance Labels as Drivers of Customer Loyalty in the Case of Traditional Food Products (May 15, 2012). Food Quality and Preference, Vol 25, No. 2, 2012, Available at SSRN: https://ssrn.com/abstract=2057817

Polymeros Chrysochou (Contact Author)

Aarhus University - Department of Business Administration ( email )

Bartholins Allé 10
bygn. 1323 - 321
Aarhus, 8000
Denmark

Krystallis Athanasios

Independent ( email )

Georges Giraud

affiliation not provided to SSRN ( email )

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