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

Author

Listed:
  • Daunfeldt, Sven-Olov

    () (The Swedish Retail Institute (HUI))

  • Orth, Matilda

    () (Department of Economics)

  • Rudholm, Niklas

    () (The Swedish Retail Institute (HUI))

Abstract

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.

Suggested Citation

  • Daunfeldt, Sven-Olov & Orth, Matilda & Rudholm, Niklas, 2008. "Does the Quality of Store Brands Affect the Number of National Brand Suppliers?," HUI Working Papers 18, HUI Research.
  • Handle: RePEc:hhs:huiwps:0018
    as

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    File URL: http://www.hui.se/LitiumDokument20/GetDocument.asp?archive=3&directory=72&document=1026
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    References listed on IDEAS

    as
    1. Kurt Brannas & Jorgen Hellstrom, 2001. "Generalized Integer-Valued Autoregression," Econometric Reviews, Taylor & Francis Journals, vol. 20(4), pages 425-443.
    2. Sven-olov Daunfeldt & Niklas Rudholm & Fredrik Bergström, 2006. "Entry into Swedish Retail and Wholesale Trade Markets," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 29(3), pages 213-225, November.
    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. 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.
    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. Pekka Ilmakunnas & Jukka Topi, 1999. "Microeconomic and Macroeconomic Influences on Entry and Exit of Firms," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 15(3), pages 283-301, November.
    7. Fiona Scott Morton, 2004. "Introduction to RIO Symposium Issue on Store Brands," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 24(2), pages 103-104, March.
    8. K. Sudhir & Debabrata Talukdar, 2004. "Does Store Brand Patronage Improve Store Patronage?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 24(2), pages 143-160, March.
    9. Granlund, David & Rudholm, Niklas, 2007. "Consumer Information and Pharmaceutical Prices: Theory and Evidence," Umeå Economic Studies 709, Umeå University, Department of Economics.
    10. Hoch, Stephen J, 2002. " Product Experience Is Seductive," Journal of Consumer Research, Oxford University Press, vol. 29(3), pages 448-454, December.
    11. Philippe Robert-Demontrond & R. Ringoot, 2004. "Introduction," Post-Print halshs-00081823, HAL.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Scanner data; household products; count data; private labels;

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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