Advanced Search
MyIDEAS: Login to save this article or follow this journal

Store loyalty, bargaining power and the private label production issue

Contents:

Author Info

  • Fabian Bergès-Sennou
Registered author(s):

    Abstract

    One of many explanations offered for the rise of private labels (PLs) is that they increase the bargaining power of the retailer. The prior question of the PL production assignment has not been analysed in an economic framework. The retailer can either entrust the production of his PL to the national brand (NB) manufacturer at a low unit cost, with the disadvantage that both products (NB and PL) are held by the same agent, or he can choose a firm from the competitive fringe with a higher unit production cost. In a framework where loyalty (presence of store-switching and brand-switching consumers) and bargaining strength count, we show that the retailer will assign his PL production to the NB manufacturer when the latter's bargaining power is low. However, a higher consumer loyalty for the NB can reverse the retailer's decision. Copyright 2006, Oxford University Press.

    Download Info

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below under "Related research" whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Bibliographic Info

    Article provided by Foundation for the European Review of Agricultural Economics in its journal European Review of Agricultural Economics.

    Volume (Year): 33 (2006)
    Issue (Month): 3 (September)
    Pages: 315-335

    as in new window
    Handle: RePEc:oup:erevae:v:33:y:2006:i:3:p:315-335

    Contact details of provider:
    Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
    Fax: 01865 267 985
    Email:
    Web page: http://www.erae.oupjournals.org/
    More information through EDIRC

    Order Information:
    Web: http://www.oup.co.uk/journals

    Related research

    Keywords:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Fabian Bergès & Valérie Orozco, 2010. "Measures of store loyalty in French food retailing," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 91(3), pages 261-277.
    2. Fabian Berg�s & Zohra Bouamra-Mechemache, 2012. "Is producing a private label counterproductive for a branded manufacturer?," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 39(2), pages 213-239, April.
    3. Hovhannisyan, Vardges & Stiegert, Kyle W., 2011. "Vertical Channel Analysis of the U.S. Milk Market," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103631, Agricultural and Applied Economics Association.
    4. Anonymous & Kim, Dong Hwan, 2009. "Structural Changes in Food Retailing: Six Country Case Studies," Structural Changes in Food Retailing: Six Country Case Studies 100443, University of Wisconsin-Madison, Department of Agricultural and Applied Economics, Food System Research Group.
    5. Johansen, Bjørn Olav, 2012. "Private Labels, Rent Shifting And Consumer Welfare," Working Papers in Economics 02/12, University of Bergen, Department of Economics.
    6. Hovhannisyan, Vardges & Stiegert, Kyle W., 2011. "Imperfect Competition between Milk Manufacturers and Retailers in a Midwestern State in the U.S," 2011 Annual Meeting, February 5-8, 2011, Corpus Christi, Texas 98844, Southern Agricultural Economics Association.
    7. Stiegert, Kyle W. & Hovhannisyan, Vardges, 2009. "Chapter 7: Food Retailing in the United States: History, Trends, Perspectives," Structural Changes in Food Retailing: Six Country Case Studies 60678, University of Wisconsin-Madison, Department of Agricultural and Applied Economics, Food System Research Group.
    8. Bergès, Fabian & Bontems, Philippe & Réquillart, Vincent, 2007. "L'impact économique du développement des marques de distributeurs," IDEI Working Papers 455, Institut d'Économie Industrielle (IDEI), Toulouse.
    9. Bonnet, Celine & Requillart, Vincent, 2010. "Is The Eu Sugar Policy Reform Likely To Increase Obesity?," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116414, European Association of Agricultural Economists & Agricultural and Applied Economics Association.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:oup:erevae:v:33:y:2006:i:3:p:315-335. See general 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: (Oxford University Press) or (Christopher F. Baum).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.