Shift in National Brand and Private Label Shares with Households Commencing Online Grocery Shopping

Philipp Brüggemann () and Carsten D. Schultz ()
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Philipp Brüggemann: FernUniversität in Hagen
Carsten D. Schultz: FernUniversität in Hagen

A chapter in Advances in National Brand and Private Label Marketing, 2023, pp 119-126 from Springer

Abstract: Abstract Online Grocery Shopping (OGS) is a relatively new sales channel for retailers and manufacturers that is changing retailing considerably. Despite this, little is known about whether or how consumers’ behavior changes when they start using OGS. We fill this research gap by measuring the share of national brands (NBs) of 173 households before and after starting OGS. Based on the literature, we derive the hypothesis that the share of NBs increases when households start using OGS, while the share of private labels (PL) consequently decreases. We use the difference-in-differences (DiD) method for our empirical analysis and test our hypothesis using extensive GfK household panel data. Our results show that the share of NBs increases significantly when a household commences OGS. Consequently, the market share of PLs decreases with start using OGS. These results help retailers and manufacturers to better understand how OGS can change consumer behavior. For manufacturers, this is a positive signal as it seems to strengthen the share of their NBs. For retailers, this is a sign of the relevance of NBs of online grocery shoppers.

Keywords: Consumer behavior; e-commerce; National brands; Online grocery shopping; Private labels; Retail (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-031-32894-7_13

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DOI: 10.1007/978-3-031-32894-7_13

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