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RESEARCH PRODUCT

Store Brands in Tourist Services

subject

description

A current trend in retailing is the use of a brand extension strategy by supermarkets and hypermarkets, which enhances the store brand’s presence in a growing number of product categories. In the travel services domain, research on store brand extension is scarce. This research paper aims to fill in a gap on brand extension of current traditional store brands to travel services. Based on a sample of 608 individuals, our findings suggest that the likelihood of choosing a travel service offered by a local retailer (hypermarket/supermarket) is directly and positively conditioned by (1) the individual’s overall attitude towards store brands, (2) customer perception of the retailer’s trustworthiness in regard to its ability to provide the new service adequately, and (3) of the perceived fit between the parent brand and the new service on offer. Our analysis of the structural equations employed also reveals that, even though consumer familiarity with store brands does not directly bear upon their intention to purchase the service, it has a positive influence on their attitude towards store brands. Lastly, and contrary to what one might expect, a negative effect emerges on their perception of the fit between the parent brand and the new service, and familiarity with the store brand.