Analyzing double jeopardy pattern among fresh fruits and vegetables
(A2019-5735)

AUTHORS

Kristin Jürkenbeck, University of Goettingen, Department of Agricultural Economics and Rural Development, Marketing of Food and Agricultural Products; Zachary Anesbury, Ehrenberg-Bass Institute, Business School, University of South Australia; Tim Bogomolov, School of Information Technology and Mathematical Sciences, University of South Australia; Svetlana Bogomolova, Ehrenberg-Bass Institute, Business School, University of South Australia

KEYWORDS

behavioral loyalty metrics; private label; proprietary brands

ABSTRACT

Fresh fruits and vegetables are available in supermarkets as proprietary brands, private label brands, and non-branded produce. The numbers of branded fresh categories (versus commodity-style) are increasing, as producers seek new ways to differentiate from their competitors. From fast moving consumer goods (FMCG) it is known that brands (both proprietary and private label) can influence consumer loyalty. Therefore, this study aims to test whether proprietary brands in fresh categories enjoy higher levels of consumer loyalty and if private label or unbranded fresh produce suffer lower levels of consumer loyalty than expected. Nielson scanner data from the United States from 2015 including almost 46,000 households were analyzed. The results show that, on average, 18% of fresh produce brands experience higher levels of loyalty and 30% of private label and 40% of non-branded fresh produce experience lower levels of loyalty, than is expected based on their size and known models.