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National brands and store brands: Competition through public quality labels

Author

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  • Daniel Hassan

    (National Institute for Agricultural Research, Rural Economy and Sociology Unit, BP 52 627 Auzeville, 31326 Castanet Tolosan, France)

  • Sylvette Monier-Dilhan

    (National Institute for Agricultural Research, Rural Economy and Sociology Unit, BP 52 627 Auzeville, 31326 Castanet Tolosan, France)

Abstract

In this article the authors study one aspect of the proliferation of quality labels in the agro-food sector: the coexistence of two signs on one same product and its consequences on the value of each sign. The context is that of the competition between national brands and private labels on a certain number of goods carrying a public quality label. The authors show that the value of a sign decreases when it is combined with another one on the same product. This result is verified for six products involving four quality labels. This allows for an interpretation of retailers' strategy concerning their private labels. [EconLit Classification: D120]. © 2006 Wiley Periodicals, Inc. Agribusiness 22: 21-30, 2006.

Suggested Citation

  • Daniel Hassan & Sylvette Monier-Dilhan, 2006. "National brands and store brands: Competition through public quality labels," Agribusiness, John Wiley & Sons, Ltd., vol. 22(1), pages 21-30.
  • Handle: RePEc:wly:agribz:v:22:y:2006:i:1:p:21-30
    DOI: 10.1002/agr.20070
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    File URL: http://hdl.handle.net/10.1002/agr.20070
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    References listed on IDEAS

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    1. Bergès-Sennou Fabian & Bontems Philippe & Réquillart Vincent, 2004. "Economics of Private Labels: A Survey of Literature," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 2(1), pages 1-25, February.
    2. Maria Luz Loureiro & Jill J. McCluskey, 2000. "Assessing consumer response to protected geographical identification labeling," Agribusiness, John Wiley & Sons, Ltd., vol. 16(3), pages 309-320.
    3. Mills, David E, 1995. "Why Retailers Sell Private Labels," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 4(3), pages 509-528, Fall.
    4. 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;The Industrial Organization Society, vol. 24(2), pages 195-218, March.
    5. Gabrielsen, Tommy Staahl & Sorgard, Lars, 2007. "Private labels, price rivalry, and public policy," European Economic Review, Elsevier, vol. 51(2), pages 403-424, February.
    6. Sanjay K. Dhar & Stephen J. Hoch, 1997. "Why Store Brand Penetration Varies by Retailer," Marketing Science, INFORMS, pages 208-227.
    7. Jagmohan S. Raju & Raj Sethuraman & Sanjay K. Dhar, 1995. "The Introduction and Performance of Store Brands," Management Science, INFORMS, vol. 41(6), pages 957-978, June.
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    Cited by:

    1. Revoredo-Giha, Cesar & Lamprinopoulou-Kranis, Chrysa & Leat, Philip M.K. & Kupiec-Teahan, Beata & Toma, Luiza & Cacciolatti, Luca, 2009. "How Differentiated Is The Scottish Beef? An Analysis Of Supermarket Data Panel," Working Papers 109392, Scottish Agricultural College, Land Economy Research Group.
    2. 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.
    3. Pradyot Ranjan Jena & Chuthaporn Ngokkuen & Dil Bahadur Rahut & Ulrike Grote, 2015. "Geographical indication protection and rural livelihoods: insights from India and Thailand," Asian-Pacific Economic Literature, Asia Pacific School of Economics and Government, The Australian National University, vol. 29(1), pages 174-185, May.
    4. Resano, Helena & Sanjuán, Ana I. & Albisu, Luis M., 2012. "Consumers’ response to the EU Quality policy allowing for heterogeneous preferences," Food Policy, Elsevier, vol. 37(4), pages 355-365.
    5. Cembalo Luigi & Cicia Gianni & Del Giudice Teresa & Scarpa Riccardo & Tagliafierro Carolina, 2008. "Beyond agropiracy : the case of italian pasta in the United States retail market," Agribusiness, John Wiley & Sons, Ltd., vol. 24(3), pages 403-413.
    6. Yu, Jianyu & Bouamra-Mechemache, Zohra & Zago, Angelo, 2016. "What’s in a Name? Information, Heterogeneity, and Quality in a Theory of Nested Names," 149th Seminar, October 27-28, 2016, Rennes, France 244897, European Association of Agricultural Economists.
    7. Ngoulma, Jeannot, 2015. "Consumers’ willingness to pay for dairy products: what the studies say? A Meta-Analysis," MPRA Paper 65250, University Library of Munich, Germany.
    8. Abhishek & Koshy, Abraham, 2008. "Quality Perceptions of Private Label Brands: Conceptual Framework and Agenda for Research," IIMA Working Papers WP2008-02-04, Indian Institute of Management Ahmedabad, Research and Publication Department.
    9. Bontemps, Christophe & Bouamra-Mechemache, Zohra & Simioni, Michel, 2012. "Quality Labels and Firm Survival in the French Cheese Industry," TSE Working Papers 12-335, Toulouse School of Economics (TSE).
    10. Disdier, Anne-Celia & Marette, Stephan, 2011. "Globalization Issues and Consumers’ Purchase Decisions for Food Products: Evidence from a Lab Experiment," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114439, European Association of Agricultural Economists.
    11. Satimanon, Thasanee & Weatherspoon, Dave D., 2010. "Hedonic Analysis of Sustainable Food Products," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 13(4).
    12. Hassan Daniel & Monier-Dilhan Sylvette & Orozco Valérie, 2011. "Measuring Consumers' Attachment to Geographical Indications," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 9(1), pages 1-30, June.
    13. repec:dau:papers:123456789/5974 is not listed on IDEAS
    14. Cembalo, Luigi & Cicia, Gianni & Del Giudice, Teresa & Scarpa, Riccardo & Tagliafierro, Carolina, 2007. "Ecological characteristics and new competitiveness strategies in fresh vegetables market," 105th Seminar, March 8-10, 2007, Bologna, Italy 7875, European Association of Agricultural Economists.
    15. Deselnicu, Oana C. & Costanigro, Marco & Souza-Monteiro, Diogo M. & McFadden, Dawn Thilmany, 2013. "A Meta-Analysis of Geographical Indication Food Valuation Studies: What Drives the Premium for Origin-Based Labels?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(2), August.
    16. Waldman, Kurt B. & Kerr, John M., 2015. "Is Food and Drug Administration policy governing artisan cheese consistent with consumers’ preferences?," Food Policy, Elsevier, vol. 55(C), pages 71-80.
    17. Dentoni, Domenico & Menozzi, Davide & Capelli, Maria Giacinta, 2010. "Heterogeneity of Members’ Characteristics and Cooperation within Producer Groups Regulating Geographical Indications: The Case of the “Prosciutto di Parma” Consortium," 116th Seminar, October 27-30, 2010, Parma, Italy 95203, European Association of Agricultural Economists.
    18. Barnes, Ryan N. & Bosworth, Ryan C. & Bailey, DeeVon & Curtis, Kynda R., 2014. "Connecting Sensory Quality Characteristics and Local Designations to Willingness to Pay for Cheese at the Retail Level," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 17(3).

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