Store Brands and the Role of Advertising

Rachel Griffith, Kate Smith and Michal Krol

No 10877, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: Store brands are products over which a retailer (rather than a manufacturer) takes certain strategic decisions; we study the incentives of a retailer to advertise its store brands. We use detailed data on the British grocery market to document the considerable variation in store brand penetration across product categories and retailers. We develop a model that relates the pricing and advertising decisions of retailers and manufacturers to primitive characteristics of the category, and in particular the way that advertising affects consumer demand. We present empirical evidence that is consistent with several predictions from the model.

Keywords: Advertising; Store brands (search for similar items in EconPapers)
JEL-codes: D21 D22 M37 (search for similar items in EconPapers)
Date: 2015-10
New Economics Papers: this item is included in nep-com, nep-ind, nep-ipr, nep-pr~ and nep-mkt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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