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Impact of private label development across retail formats: Evidences from the Italian dairy market

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  • Sckokai, Paolo
  • Soregaroli, Claudio

Abstract

In the European food sector private labels represent a relevant and increasing share of total sales. Focusing on price strategies, recent theoretical papers conclude that private label development should cause a decrease in the price of national brands, while some empirical studies do not support this prediction. The aim of this study is to explore this empirical relationship for the Italian dairy sector. Using retail sales data, we study how prices of national brands react to private label growth. We find that the impact of private label development on national brand prices is product specific: a negative impact is registered by industrial products such as butter and mascarpone and by highly differentiated products such as yogurt. Positive effect is found in the case of traditional cheeses produced by strong national brands
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Suggested Citation

  • Sckokai, Paolo & Soregaroli, Claudio, 2008. "Impact of private label development across retail formats: Evidences from the Italian dairy market," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 87(2).
  • Handle: RePEc:ags:frraes:188539
    DOI: 10.22004/ag.econ.188539
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    File URL: http://ageconsearch.umn.edu/record/188539/files/87-2-27-47.pdf
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    References listed on IDEAS

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    1. 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.
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    Cited by:

    1. Tiboldo, Giulia & Lopez, Rigoberto & Hirsch, Stefan, 2016. "Private label market power: evidence from Italian dairy retailing," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235592, Agricultural and Applied Economics Association.
    2. Castellari, Elena & Moro, Daniele Daniele & Platoni, Silvia & Sckokai, Paolo, 2014. "Investigating the impact of Private Labels on National Brand prices in the Italian yogurt market," 2014 Third Congress, June 25-27, 2014, Alghero, Italy 173020, Italian Association of Agricultural and Applied Economics (AIEAA).
    3. Irz, Xavier & Mazzocchi, Mario & Réquillart, Vincent & Soler, Louis-Georges, 2015. "Research in Food Economics: past trends and new challenges," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 96(01), pages 187-237, March.
    4. repec:eee:jfpoli:v:74:y:2018:i:c:p:212-224 is not listed on IDEAS
    5. repec:ags:pdcbeh:128680 is not listed on IDEAS

    More about this item

    Keywords

    Agribusiness;

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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