Confirming the Price Effects of Private Labels Development
We study the price response of national brands to the development of private labels. We use monthly data from a consumer survey reporting their purchases for 218 food products. We show that when private labels have a significant effect on national brands prices (144 cases over 218), that is positive (89%). We also show that the increase in the prices of national brand products is explained by a strategy of product differentiation. Finally, price reaction of national brands differs with the type of private labels they are facing. This paper confirms, on a larger number of products, previous empirical results.
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|Date of creation:||Jul 2005|
|Date of revision:|
|Publication status:||Published in Review of Industrial Organization, vol. 33, n°1, août 2008, p. 1-22.|
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22186, University Library of Munich, Germany.
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De Gruyter, vol. 3(1), pages 1-18, February.
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