Pandemic-led brand switch: Consumer stickiness for private-label brands

Abstract

The onset of COVID-19 resulted in unprecedented shopping behavior, leading to product scarcity and empty store shelves, making consumers shift towards purchasing private-label store brands. In this research, we aim to understand the role of the pandemic in influencing the preference for private-label products. Using secondary data, we offer longitudinal evidence that although national and private-label brand sales increased equally during the peak pandemic period, the growth rate for national brands subsided in the post-pandemic years, but that of private-label brands sustained its upward trend. Further, using experimental design, we test this phenomenon and find that greater availability of private-label brands during the pandemic resulted in higher perceived brand-helpfulness, which evoked brand attachment and persuaded the customers to continue repurchasing. Our research thus contributes by providing unique insights that can help brands strategize effectively and ensure continued brand attachment in the post-pandemic period, and additionally, help brands retain customers and foster loyalty during crises.