Confirming the Price Effects of Private Labels Development

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Confirming the Price Effects of Private Labels Development

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Bontemps, Christophe
Orozco, Valerie
Requillart, Vincent

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Abstract

We study the price response of national brands to the development of private labels. We use monthly data from a consumer survey reporting their purchases for 218 food products. We show that when private labels have a significant effect on national brands prices (144 cases over 218), that is positive (89%). We also show that the increase in the prices of national brand products is explained by a strategy of product differentiation. Finally, price reaction of national brands differs with the type of private labels they are facing. This paper confirms, on a larger number of products, previous empirical results.

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Paper provided by European Association of Agricultural Economists in its series 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark with number 24735.

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Date of creation: 2005
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Handle: RePEc:ags:eaae05:24735

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Paper
- Bontemps, Christophe & Orozco, Valérie & Réquillart, Vincent, 2005. "Confirming the Price Effects of Private Labels Development," IDEI Working Papers 367, Institut d'Économie Industrielle (IDEI), Toulouse. [Downloadable!]
- Bontemps, C. & Orozco, V. & Réquillart, V., 2005. "Confirming the price effects of private labels development," Economics Working Paper Archive (Toulouse) 200506, French Institute for Agronomy Research (INRA), Economics Laboratory in Toulouse (ESR Toulouse). [Downloadable!]

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

Fabian Bergès-Sennou & Philippe Bontems & Vincent Réquillart, 2004. "Economics of Private Labels: A Survey of Literature," Journal of Agricultural & Food Industrial Organization, Berkeley Electronic Press, vol. 2(1). [Downloadable!]
Mills, David E, 1999. "Private Labels and Manufacturer Counterstrategies," European Review of Agricultural Economics, Oxford University Press for the Foundation for the European Review of Agricultural Economics, vol. 26(2), pages 125-45, June.
Staahl Gabrielsen, T. & Sorgard, L., 2000. "Private Labels, Price Rivalry, and Public Policy," Papers 8/00, Norwegian School of Economics and Business Administration-.
Other versions:
- Tommy Gabrielsen & Lars SÃ¸rgard, 2000. "Private Labels, Price Rivalry, and Public Policy," University of California at Santa Barbara, Economics Working Paper Series wp9-00, Department of Economics, UC Santa Barbara. [Downloadable!]
- Tommy Staahl Gabrielsen & Lars Sorgard, . "Private Labels, Price Rivalry, and Public Policy," University of California at Santa Barbara, Economics Working Paper Series 9-00, Department of Economics, UC Santa Barbara. [Downloadable!]
- Gabrielsen, Tommy Staahl & Sorgard, Lars, 2007. "Private labels, price rivalry, and public policy," European Economic Review, Elsevier, vol. 51(2), pages 403-424, February. [Downloadable!] (restricted)
Antoine Bommier & Pierre Dubois, 2004. "Rotten Parents and Child Labor," Journal of Political Economy, University of Chicago Press, vol. 112(1), pages 240-248, February. [Downloadable!] (restricted)
Other versions:
- Antoine Bommier & Pierre Dubois, 2002. "Rotten Parents and Child Labor," Research Unit Working Papers 0202, Laboratoire d'Economie Appliquee, INRA. [Downloadable!]
Mills, David E, 1995. "Why Retailers Sell Private Labels," Journal of Economics & Management Strategy, Blackwell Publishing, vol. 4(3), pages 509-28, Fall.
Fiona Scott Morton & Florian Zettelmeyer, 2004. "The Strategic Positioning of Store Brands in Retailer--Manufacturer Negotiations," Review of Industrial Organization, Springer, vol. 24(2), pages 161-194, 03. [Downloadable!]
Soberman, David A. & Parker, Philip M., 2004. "Private labels: psychological versioning of typical consumer products," International Journal of Industrial Organization, Elsevier, vol. 22(6), pages 849-861, June. [Downloadable!] (restricted)
André Bonfrer & Pradeep K. Chintagunta, 2004. "Store Brands: Who Buys Them and What Happens to Retail Prices When They Are Introduced?," Review of Industrial Organization, Springer, vol. 24(2), pages 195-218, 03. [Downloadable!]
Bontems, Philippe & Monier-Dilhan, Sylvette & Requillart, Vincent, 1999. "Strategic Effects of Private Labels," European Review of Agricultural Economics, Oxford University Press for the Foundation for the European Review of Agricultural Economics, vol. 26(2), pages 147-65, June.

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