Buying non-traditional products and services: the predictive role of customer loyalty to the retail brand

The paper explores the relationship between customer loyalty to the retail brand and the purchase of non-traditional products and services (NTPS) offered by grocery retailers with their private label (i.e.: over-the-counter products, photo printing, mobile communication services and travel booking). Customer loyalty to the retail brand is measured through its behavioural and cognitive components. A survey was conducted administering a questionnaire to 480 retail customers in two stores belonging to different retail grocers. A binary logistic regression was then applied using the buying of at least one NTPS as dependent variable (1= buy; 0= no buy) and behavioural loyalty and cognitive loyalty as independent variables. Results show that loyal customer are more prone to buy this kind of offer, with cognitive loyalty playing the major role as buying predictor. Theoretical and managerial implications are derived.