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Price Effects of Private Label Development

Author

Listed:
  • Bontemps Christophe

    (University of Toulouse (INRA), France)

  • Orozco Valerie

    (University of Toulouse (INRA), France)

  • Réquillart Vincent

    (University of Toulouse (INRA, IDEI), France)

  • Trevisiol Audrey

    (University of Toulouse (INRA), France)

Abstract

We study the price response of national brands to the development of private labels. Using monthly data from a consumer survey, we show that prices of national brands increase with the development of private labels. However, we also show that the price increase in 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.

Suggested Citation

  • Bontemps Christophe & Orozco Valerie & Réquillart Vincent & Trevisiol Audrey, 2005. "Price Effects of Private Label Development," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 3(1), pages 1-18, February.
  • Handle: RePEc:bpj:bjafio:v:3:y:2005:i:1:n:3
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    Cited by:

    1. Derek Baker & Kenneth Baltzer & Anja Skadkær Møller, 2006. "Branding behavior in the Danish food industry," Agribusiness, John Wiley & Sons, Ltd., vol. 22(1), pages 31-49.
    2. Zhuang, Yan & Dimitri, Carolyn & Jaenicke, Edward C., 2010. "Price Reactions And Organic Price Premiums For Private Label And Branded Milk," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116388, European Association of Agricultural Economists;Agricultural and Applied Economics Association.
    3. Christophe Bontemps & Valérie Orozco & Vincent Réquillart, 2008. "Private Labels, National Brands and Food Prices," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 33(1), pages 1-22, August.
    4. 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).
    5. Cotterill, Ronald W., 2006. "Antitrust analysis of supermarkets: global concerns playing out in local markets," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(1), March.
    6. Dubois, Pierre & Jodar-Rosell, Sandra, 2010. "Price and Brand Competition between Differentiated Retailers: A Structural Econometric Model," IDEI Working Papers 604, Institut d'Économie Industrielle (IDEI), Toulouse.
    7. Richards, Timothy J. & Hamilton, Stephen F. & Patterson, Paul M., 2010. "Spatial Competition and Private Labels," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 35(2), August.
    8. Volpe III, Rickard James, 2014. "National Brands, Private Labels, and Food Price Inflation," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 46(04), November.
    9. Fabian Bergès & Philippe Bontems & Vincent Réquillart, 2009. "L'impact économique du développement des marques de distributeurs," Economie & Prévision, La Documentation Française, vol. 0(3), pages 41-56.
    10. Markus Lampe & Paul Sharp, 2014. "Greasing the wheels of rural transformation? Margarine and the competition for the British butter market," Economic History Review, Economic History Society, vol. 67(3), pages 769-792, August.
    11. Venturini, Luciano, 2006. "Vertical competition between manufacturers and retailers and upstream incentives to innovate and differentiate," 98th Seminar, June 29-July 2, 2006, Chania, Crete, Greece 10050, European Association of Agricultural Economists.
    12. Daunfeldt, Sven-Olov & Orth, Matilda & Rudholm, Niklas, 2008. "Does the Quality of Store Brands Affect the Number of National Brand Suppliers?," HUI Working Papers 18, HUI Research.
    13. 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).
    14. Sckokai, Paolo & Soregaroli, Claudio, 2006. "Do consumers benefit from private label development?," 98th Seminar, June 29-July 2, 2006, Chania, Crete, Greece 10068, European Association of Agricultural Economists.
    15. Paolo Sckokai & Claudio Soregaroli, 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, INRA Department of Economics, vol. 87(2), pages 27-47.
    16. Schroeter Christiane & Cai Xiaowei, 2012. "The Impact of Food Environment on Private Label versus Branded Produce Choice," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 10(1), pages 1-23, November.
    17. Tiboldo, Giulia & Lopez, Rigoberto & Hirsch, Stefan, 2016. "Private label market power: evidence from Italian dairy retailing," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235592, Agricultural and Applied Economics Association.
    18. Johansen, Bjørn Olav, 2012. "Private Labels, Rent Shifting And Consumer Welfare," Working Papers in Economics 02/12, University of Bergen, Department of Economics.
    19. Bonanno Alessandro & Lopez Rigoberto A., 2005. "Private Label Expansion and Supermarket Milk Prices," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 3(1), pages 1-18, February.

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