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Price Effects of Private Label Development

Christophe Bontemps (), Valérie Orozco (), Vincent Réquillart () and Trevisiol Audrey
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Trevisiol Audrey: University of Toulouse (INRA), France

Journal of Agricultural & Food Industrial Organization, 2005, vol. 3, issue 1, 1-18

Abstract: We study the price response of national brands to the development of private labels. Using monthly data from a consumer survey, we show that prices of national brands increase with the development of private labels. However, we also show that the price increase in 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.

Date: 2005
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Working Paper: Price Effects of Private Labels Development (2004)
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DOI: 10.2202/1542-0485.1086

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