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Analyzing the intensity of private label competition across retailers

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  • Dawes, John
  • Nenycz-Thiel, Magda

Abstract

Examining how buyers of one private label (PL) in a product category also cross-purchase the private labels of competing retailers in the same category is the focus of this study. Understanding consumer cross-purchasing of PLs is important to retailers, who use PLs as one tactic to differentiate from other retailers; and important to manufacturers, who compete against PLs. A higher level of PL cross-purchasing indicates heightened competitive intensity among the PLs of rival retailers. Results across 27 categories indicate that PLs compete against national brands (NBs) within-store, but also compete against the PLs of other retailers across stores. Heightened competition among the PLs of different retailers occurs in categories with higher purchase frequency; in which the average PL price is well below the average NB price; and in categories with higher levels of manufacturer brand price promotions.

Suggested Citation

  • Dawes, John & Nenycz-Thiel, Magda, 2013. "Analyzing the intensity of private label competition across retailers," Journal of Business Research, Elsevier, vol. 66(1), pages 60-66.
    • Handle: RePEc:eee:jbrese:v:66:y:2013:i:1:p:60-66
    DOI: 10.1016/j.jbusres.2011.07.023
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    3. Marques, Catarina & da Silva, Rui Vinhas & Davcik, Nebojsa S. & Faria, Rita Tamagnini, 2020. "The role of brand equity in a new rebranding strategy of a private label brand," Journal of Business Research, Elsevier, vol. 117(C), pages 497-507.
    4. İpek, İlayda & Aşkın, Nilay & İlter, Burcu, 2016. "Private label usage and store loyalty: The moderating impact of shopping value," Journal of Retailing and Consumer Services, Elsevier, vol. 31(C), pages 72-79.
    5. Miquel-Romero, Maria José & Caplliure-Giner, Eva María & Adame-Sánchez, Consolación, 2014. "Relationship marketing management: Its importance in private label extension," Journal of Business Research, Elsevier, vol. 67(5), pages 667-672.
    6. Fornari, Edoardo & Fornari, Daniele & Grandi, Sebastiano & Menegatti, Mario, 2013. "The influence of retailing-mix levers on private label market share: The case of the Italian FMCG market," Journal of Retailing and Consumer Services, Elsevier, vol. 20(6), pages 617-624.
    7. Nenycz-Thiel, Magda & Romaniuk, Jenni, 2016. "Understanding premium private labels: A consumer categorisation approach," Journal of Retailing and Consumer Services, Elsevier, vol. 29(C), pages 22-30.
    8. Zachary Nolan, 2019. "Optimal Assortment on an Integrated Platform," Working Papers 19-06, NET Institute.
    9. Garczarek-Bąk Urszula, 2018. "Explicit and Implicit Factors That Determine Private Labels’ Possible Purchase: Eyetracking and EEG Research," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 54(1), pages 36-49, March.
    10. Chen, Xuan & Liu, Yizao & Rabinowitz, Adam N., 2017. "Private Labels Competition, Retail Pricing and Bargaining Power: The Case of Fluid Milk Market," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252823, Southern Agricultural Economics Association.
    11. Cuneo, Andres & Milberg, Sandra J. & Alarcon-del-Amo, Maria del Carmen & Lopez-Belbeze, Pilar, 2019. "Private label and manufacturer brand choice in a new competitive reality: Strategic directions and the future of brands," European Management Journal, Elsevier, vol. 37(1), pages 117-128.
    12. Bhat Ishfaq Hussain & Singh Sapna, 2018. "Examining the moderating effect of shopping value on private-label and loyalty in Indian grocery stores," Management & Marketing, Sciendo, vol. 13(1), pages 748-760, March.
    13. Khalil Assala & Suela Bylykbashi & Gilles Roehrich, 2021. "How To Measure Competitive Intensity?," Post-Print hal-03381232, HAL.
    14. Wu, Lifang & Yang, Wei & Wu, Jessica, 2021. "Private label management: A literature review," Journal of Business Research, Elsevier, vol. 125(C), pages 368-384.
    15. Xuan, Chen & Rabinowitz, Adam & Liu, Yizao, 2016. "Private Labels Competition and Retailers Market Power: The Case of Fluid Milk Market in Connecticut," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235678, Agricultural and Applied Economics Association.
    16. Stefan Hirsch & Giulia Tiboldo & Rigoberto A. Lopez, 2018. "A tale of two Italian cities: brand-level milk demand and price competition," Applied Economics, Taylor & Francis Journals, vol. 50(49), pages 5239-5252, October.
    17. Kwieciński Dariusz, 2017. "Measures of Competitive Intensity – Analysis Based on Literature Review," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 25(1), pages 53-77, March.
    18. Hökelekli, Gizem & Lamey, Lien & Verboven, Frank, 2017. "The battle of traditional retailers versus discounters: The role of PL tiers," Journal of Retailing and Consumer Services, Elsevier, vol. 39(C), pages 11-22.
    19. Dawes, John, 2014. "Cigarette brand loyalty and purchase patterns: An examination using US consumer panel data," Journal of Business Research, Elsevier, vol. 67(9), pages 1933-1943.
    20. Hanna Górska-Warsewicz & Sylwia Żakowska-Biemans & Maksymilian Czeczotko & Monika Świątkowska & Dagmara Stangierska & Ewa Świstak & Agnieszka Bobola & Julita Szlachciuk & Karol Krajewski, 2018. "Organic Private Labels as Sources of Competitive Advantage—The Case of International Retailers Operating on the Polish Market," Sustainability, MDPI, vol. 10(7), pages 1-28, July.
    21. Coelho do Vale, Rita & Verga Matos, Pedro & Caiado, Jorge, 2016. "The impact of private labels on consumer store loyalty: An integrative perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 28(C), pages 179-188.
    22. Pangarkar, Aniruddha & Shukla, Paurav & Taylor, Charles R. “Ray”, 2021. "Minimalism in consumption: A typology and brand engagement strategies," Journal of Business Research, Elsevier, vol. 127(C), pages 167-178.

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