How consumers assess retailer brand substitution strategy: Impact of perceived similarity and consumer attachment

Abstract

The objective of this study is to examine how consumers assess brand substitution strategies implemented by retailers, focusing specifically on the transition from Promogro to MG (Magasin Général) retailer brand. A quantitative study involving 351 Tunisian customers who regularly patronize supermarkets (Promogro and MG) was conducted to test hypotheses and analyze the impact of various factors in April 2022. The research model was evaluated through structural equation modeling (SEM) using the AMOS 22 software. The results indicate a negative correlation between consumers’ attachment to the old retail brand and their attitude toward the brand substitution process (β = –0.09*, p < 0.01). Furthermore, perceptions of the retailer brand emerged as a significant mediating factor influencing the relationship between attitudes and consumers’ intention to revisit the new retailer brand (β = 0.29**, confidence interval [0.17; 0.51]). Additionally, the study found that the association between consumer attachment and perceptions of the new retailer brand is positively moderated by perceived similarity (β = 0.226, p = 0.00). Specifically, when there is a high degree of resemblance between the two retailer brands, customers with a stronger attachment to the former brand tend to have a more favorable perception of the new retailer brand. This study provides valuable insights for managers, helping them identify critical success criteria that facilitate customer acceptance of brand changes and offering guidance on effectively substituting retailer brand names.