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National brands and store brands: Competition through public quality labels

Author

Listed:
  • 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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    References listed on IDEAS

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    1. Gabrielsen, Tommy Staahl & Sorgard, Lars, 2007. "Private labels, price rivalry, and public policy," European Economic Review, Elsevier, vol. 51(2), pages 403-424, February.
    2. Sanjay K. Dhar & Stephen J. Hoch, 1997. "Why Store Brand Penetration Varies by Retailer," Marketing Science, INFORMS, vol. 16(3), pages 208-227.
    3. 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.
    4. 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.
    5. 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.
    6. Mills, David E, 1995. "Why Retailers Sell Private Labels," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 4(3), pages 509-528, Fall.
    7. 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.
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