Market-structure Determinants of National Brand-Private Label Price Differences of Manufactured Food Products: Comment

2003 ◽  
Vol 45 (2) ◽  
pp. 219-223 ◽  
Author(s):  
Jeroen Hinloopen ◽  
Stephen Martin
2021 ◽  
Vol 13 (13) ◽  
pp. 7028
Author(s):  
Ellen J. Van Loo ◽  
Fien Minnens ◽  
Wim Verbeke

Many retailers have expanded and diversified their private label food product assortment by offering premium-quality private label food products such as organic products. With price being identified as the major barrier for organic food purchases, private label organic food products could be a suitable and more affordable alternative for many consumers. While numerous studies have examined consumer preferences for organic food, very few organic food studies have incorporated the concept of private labels. This study addresses this research gap by studying consumer preferences and willingness to pay for national brand and private label organic food using a latent class model. Specifically, this study analyzes consumer preferences for organic eggs and orange juice and the effect of national branding versus private label. Findings show heterogeneity in consumer preferences for production method and brand, with three consumer segments being identified based on their preferences for both juice and eggs. For eggs, about half of the consumers prefer private label and organic production, whereas one-quarter clearly prefers organic, and another quarter is indifferent about the brand and the organic production. For orange juice, the majority (75%) prefer the national brand. In addition, one-quarter of the consumers prefers organic juice, and about one-third values both organic and the national brand.


2015 ◽  
Vol 13 (2) ◽  
pp. 123 ◽  
Author(s):  
Elias G. Rizkallah ◽  
Heather Miller

Motivated by profits and their growing power in the marketplace, retailers have been expanding their private-label brands to include more categories of consumer products and differentiation on quality to reach different consumer segments. This global phenomenon is adversely impacting the performance of national brands, thus creating a conflict between two powerful parties manufacturers of national brands and their large retailers who are supposed to be their helping hands in the marketplace. In this paper, the authors develop a conceptual framework, which captures the complexity and multidimensionality of the situation the stakeholders involved, the interest and power of each, the relationships among them, various strategies they employ, and the outcomes of the conflict. Several hypotheses were examined and tested through the empirical part of this study; for example, would the powers of these parties determine who is the loser and who is the winner or will the verdict be in the hands of the consumers? The study surveyed 281 consumers to assess their attitudes toward and preferences of store brands versus national brands across product categories and the underlying motivations. The paper concludes with recommendations for retailers and national brand manufacturers to win the hearts of consumers rather than exhaust their resources in the conflict.


2020 ◽  
Vol 10 (4) ◽  
pp. 91
Author(s):  
Eloy Gil-Cordero ◽  
Francisco Javier Rondán-Cataluña ◽  
Daniel Sigüenza-Morales

In this study, we have analyzed the impact and evolution of some of the most important macroeconomic indices on the market share and value of private brands. The originality and objective of this work is the linkage of macroeconomic variables in European countries and the USA with the evolution of private labels in these countries. A sample of 19 European countries and all states within the USA has been collected over a 10-year period, including data on private labels and macroeconomic indices. The analysis of the panel data has been applied using the SPSS software through the Ljung–Box test. The most significant data from the sample study is that for GDP; we advised national brand managers to make a special communication effort in nations that offer a lower GDP within Europe for their volume and in value for the US. On the other hand, it was found that when the unemployment rate increases, the value of private label market share decreases for the US, but increases for Europe, in addition to other findings that will help organizations make different business decisions.


2019 ◽  
Vol 11 (2) ◽  
pp. 96-112 ◽  
Author(s):  
Yingjue Zhou ◽  
Tieming Liu ◽  
Gangshu Cai

In this paper, the authors investigate the impact of in-store promotion and its spillover effect on private label introductions. Studying different retail supply chain scenarios in which the retailer carrying a national brand may introduce its own private label product and promote either the national brand or the private label inside the store, they find the in-store promotion on one product has a positive spillover effect on the other product. Without in-store promotion and spillover effect, the conventional wisdom indicates that, in a retail supply chain, the national brand manufacturer will be negatively affected by the introduction of a private label product. With in-store promotion and spillover effect, however, the national brand manufacturer can actually benefit from the private label introduction. When the spillover from national brand to private label is high, the retailer prefers to promote the national brand product. When the spillover from private label to national brand is high, promoting the private label product can also benefit the national brand manufacturer. With a symmetric spillover rate, the national brand manufacturer can still benefit from the private label introduction, as long as the retailer promotes the national brand product, the horizontal competition is not intense, or the private label product quality is sufficiently low.


Sign in / Sign up

Export Citation Format

Share Document