Will they return? Getting private label consumers to come back: Price, promotion, and new product effects

• Price, promotion and product innovation show different effects to recover private label consumers.
• Price is not the most efficient strategy to win back consumers from private labels.
• Promotions and new product introductions are more efficient strategies than price.
• The effectiveness of non-price strategies depend on consumers perceived value.

Using a hazard model specification with two years of consumer panel data, this study simultaneously quantifies the effects of price gaps, non-monetary promotions, and new products on consumer switching from private labels back to manufacturer brands. The research focuses on the switching phenomena, rather than choice, such that time is a relevant variable. According to the results, non-monetary promotions and new products are more effective for recovering consumers than price gap reductions. These findings underscore the importance of understanding how consumers perceive the value of manufacturer brands.