The Effect of Private Brands on Leveraging Service Quality and Satisfaction

Abstract

The aim of the present study is to test the positive effect of private labels in the service sector on perceptions of service quality (the SERVQUAL dimensions) and service satisfaction. A total of 200 health club and 200 coffee shop/restaurant customers completed the study questionnaire. Overall, perception of the private label had a positive effect on service satisfaction through the mediation of perceptions of service quality. The impact of private label perception on service quality and satisfaction was stronger in the coffee shop/restaurant subsample. Service providers should consider implementing private branding strategies as a way to reinforce perceptions of service quality.

KEYWORDS:

• service quality
• private brands
• restaurants
• health and fitness clubs
• customer satisfaction