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Cross-category effects and private labels

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  • Timothy Richards
  • Koichi Yonezawa
  • Sophie Winter

Abstract

Umbrella effects, or the ability of a brand in one category to generate sales for store brands in other categories, may explain the growth in private labels. We estimate the potential umbrella effects among private label products using a generalised multiple-discrete-continuous extreme value (GMDCEV) model. We find significant positive associations between private label sales in some categories with private label sales in other, related categories. Our results suggest that food retailers would be well-served to develop store brands across categories that are related in either use or production, ‘dairy’ and ‘meat’ private labels, for example, instead of creating uniform umbrella brands as is often the practice.

Suggested Citation

  • Timothy Richards & Koichi Yonezawa & Sophie Winter, 2015. "Cross-category effects and private labels," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 42(2), pages 187-216.
    • Handle: RePEc:oup:erevae:v:42:y:2015:i:2:p:187-216.
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    File URL: http://hdl.handle.net/10.1093/erae/jbu016
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    Cited by:

    1. Neill, Clinton L. & Lahne, Jacob, 2022. "Matching reality: A basket and expenditure based choice experiment with sensory preferences," Journal of choice modelling, Elsevier, vol. 44(C).
    2. Tsekouropoulos, Georgios & Koliouska, Christiana & Theocharis, Dimitrios & Andreopoulou, Zacharoula, 2018. "Green products: digital marketing and consumer behavior for sustainability," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 0(Issue 2).
    3. Georgios TSEKOUROPOULOS & Dimitrios THEOCHARIS & Christos SARMANIOTIS, 2019. "Consumer Behaviour and Factors Affecting the Selection of Green Private Label Products in Greek Retail Market," International Conference on Economic Sciences and Business Administration, Spiru Haret University, vol. 5(1), pages 204-213, November.
    4. Keller, Kristopher O. & Dekimpe, Marnik G. & Geyskens, Inge, 2022. "Adding budget and premium private labels to standard private labels: Established empirical generalizations, emerging empirical insights, and future research," Journal of Retailing, Elsevier, vol. 98(1), pages 5-23.
    5. Timothy J. Richards, 2017. "Analysis of Umbrella Branding with Crowdsourced Data," Agribusiness, John Wiley & Sons, Ltd., vol. 33(2), pages 135-150, April.

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