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Does the Quality of Store Brands Affect the Number of National Brand Suppliers?

  • Daunfeldt, Sven-Olov

    ()

    (The Swedish Retail Institute (HUI))

  • Orth, Matilda

    ()

    (Department of Economics)

  • Rudholm, Niklas

    ()

    (The Swedish Retail Institute (HUI))

This paper examines how the increased market shares of the store brands affect the entry and survival of national brand suppliers. The analysis is performed on monthly scanner data for a number of household- and personal-care products covering June 2001 through May 2004. An increased market share of medium-priced store brands was found to decrease the number of suppliers of national brands. However, no statistically significant impact was found of low-priced store brand market shares on the numer of national brand suppliers. It thus seems that it is mainly medium-priced store brands that compete with national brands.

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Paper provided by HUI Research in its series HUI Working Papers with number 18.

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Length: 21 pages
Date of creation: 09 Jun 2008
Date of revision:
Handle: RePEc:hhs:huiwps:0018
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  1. Sven-olov Daunfeldt & Niklas Rudholm & Fredrik Bergström, 2006. "Entry into Swedish Retail and Wholesale Trade Markets," Review of Industrial Organization, Springer, vol. 29(3), pages 213-225, November.
  2. K. Sudhir & Debabrata Talukdar, 2004. "Does Store Brand Patronage Improve Store Patronage?," Review of Industrial Organization, Springer, vol. 24(2), pages 143-160, 03.
  3. 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.
  4. Ilmakunnas, Pekka & Topi, Jukka, 1996. "Microeconomic and Macroeconomic Influences on Entry and Exit of Firms," Research Discussion Papers 6/1996, Bank of Finland.
  5. Brännäs, Kurt & Hellström, Jörgen, 1999. "Generalized Integer-Valued Autoregression," Umeå Economic Studies 501, Umeå University, Department of Economics.
  6. Gabrielsen, Tommy Staahl & Sorgard, Lars, 2007. "Private labels, price rivalry, and public policy," European Economic Review, Elsevier, vol. 51(2), pages 403-424, February.
  7. Granlund, David & Rudholm, Niklas, 2007. "Consumer Information and Pharmaceutical Prices: Theory and Evidence," Umeå Economic Studies 709, Umeå University, Department of Economics.
  8. Blundell, Richard & Griffith, Rachel & Windmeijer, Frank, 2002. "Individual effects and dynamics in count data models," Journal of Econometrics, Elsevier, vol. 108(1), pages 113-131, May.
  9. Fiona Scott Morton, 2004. "Introduction to RIO Symposium Issue on Store Brands," Review of Industrial Organization, Springer, vol. 24(2), pages 103-104, 03.
  10. Hoch, Stephen J, 2002. " Product Experience Is Seductive," Journal of Consumer Research, University of Chicago Press, vol. 29(3), pages 448-54, December.
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