Store Brands: Who Buys Them and What Happens to Retail Prices When They Are Introduced?
AbstractIn this paper we study store brand demand behavior by examining a panel of household level and store-level data in five stores located in a competing market area. We seek to address three fundamental questions from this data. First, is there a link between store loyalty and brand loyalty? Second, does store loyalty raise store brand choice probabilities? Third, if a store brand is introduced into a category, what happens to the retail prices of the incumbent brands in the category? We find that store loyalty is negatively associated with brand loyalty, and that store loyalty increases the likelihood of a store brand purchase in a given category. We find mixed evidence on how the retailer changes prices of incumbent brands when it introduces a store brand to the category. Category level market structure measures are used to help identify under what conditions the category prices fall or rise. A number of robustness checks are used to help validate our findings.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Springer in its journal Review of Industrial Organization.
Volume (Year): 24 (2004)
Issue (Month): 2 (03)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=100336
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.