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The Profitability of Store Brand Introductions by E-commerce Platforms Selling Competing National Brands

In: Advances in National Brand and Private Label Marketing

Author

Listed:
  • Salma Karray

    (Ontario Tech University)

Abstract

This paper studies the profitability of a store brand introduction by an e-commerce platform offering competing manufacturers’ products. We develop a game-theoretic model and obtain equilibrium quantity and pricing solutions for the manufacturers and the platform. We compare equilibrium strategies and profits in games where the platform does and does not offer a store brand. Our main findings indicate that the platform benefits from introducing a strong store brand to the detriment of manufacturers.

Suggested Citation

  • Salma Karray, 2022. "The Profitability of Store Brand Introductions by E-commerce Platforms Selling Competing National Brands," Springer Proceedings in Business and Economics, in: Francisco J. Martínez-López & Juan Carlos Gázquez-Abad & Marco Ieva (ed.), Advances in National Brand and Private Label Marketing, pages 62-69, Springer.
    • Handle: RePEc:spr:prbchp:978-3-031-06581-1_8
    DOI: 10.1007/978-3-031-06581-1_8
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