IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Private labels and the specific retailer's role

Listed author(s):
  • Bergès-Sennou, F.
  • Rey, P.

Private labels (or own-brand products) play a prominent role for consumers in their perception of retailers' reputation. In a model where products are experience goods, a retailer has the opportunity to introduce his own store brand, or to sell a branded product. However, the retailer does only control the production process in a case of a private label. We find that even if the national brand is the less costly product, the retailer prefers to introduce a private label for low frequently purchased goods. Controlling fully the production process for his own brand allows the retailer not to leave consequent rents to the national brand manufacturer for being certain of getting a high quality national brand. Besides, when the relailer does not know the market demand level when he takes the product decision to introduce, there are some cases where the private label is intoduced whereas it would have been more efficient to sell a national brand. Last, we find that an increase in retailer's size favors the introduction of private label. ...French Abstract : Les marques de distributeurs (MDD) jouent un rôle important auprès des consommateurs vis-à-vis de la réputation du détaillant. Dans un modèle oû les produits sont des biens d'expérience, le distributeur a le choix entre vendre sa MDD ou un bien de marque (marque nationale : MN). Le distributeur ne contrôle cependant le processus de production que s'il commercialise une MDD. Les auteurs montrent que même lorsque la marque nationale est le produit le moins coûteux, le détaillant préfèrera pour des biens achetés fréquemment, introduire une MDD. Le fait de contrôler entièrement le processus de production permet au détaillant de ne pas laisser des rentes coûteuses au producteur de MN afin d'être certain d'avoir un produit MN de haute qualité. Si le distributeur ne connaît pas le niveau de demande au moment oû il prend le choix pour le produit à commercialiser, il existe des cas oû la MDD est introduite alors qu'il aurait été plus efficace de mettre en vente la MN. Ils montrent enfin qu'un accroissement de la taille du détaillant favorise l'introduction d'une MDD.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by French Institute for Agronomy Research (INRA), Economics Laboratory in Toulouse (ESR Toulouse) in its series Economics Working Paper Archive (Toulouse) with number 200413.

in new window

Length: 20 p.
Date of creation: 2004
Handle: RePEc:rea:inrawp:200413
Contact details of provider: Postal:
INRA ESR - BP27 - 31326 Castanet Tolosan cedex - France

Fax: (33)
Web page:

More information through EDIRC

Order Information: Postal: INRA ESR - BP27 - 31326 Castanet Tolosan cedex - France

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:rea:inrawp:200413. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (RAYNAL Helene)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.