 Does private-label production by national-brand manufacturers create discounter goodwill?Anne ter Braak, Barbara Deleersnyder, Inge Geyskens and Marnik G. Dekimpe International Journal of Research in Marketing, 2013, vol. 30, issue 4, 343-357 Abstract: Discount stores have a private-label dominated assortment where national brands have only limited shelf access. These limited spots are in high demand by national-brand manufacturers. We examine whether private-label production by leading national-brand manufacturers for two important discounters (one hard and one soft) creates discounter goodwill. We estimate a selection model that is based on a sample of 450 manufacturer-category combinations from two leading discounters (Aldi in Germany and Mercadona in Spain), and we show that private-label production is indeed rewarded: national-brand manufacturers that are involved in such practices have a higher likelihood of procuring shelf presence for their brands. Moreover, while powerful manufacturers are intrinsically more likely to obtain shelf presence with soft discounters, manufacturers with less power can compensate for this by producing private labels. No such dependence on power exists for hard discounters. Keywords: Private label; Shelf allocation; Sourcing decisions; Discounters; Channel relationships (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ijrema:v:30:y:2013:i:4:p:343-357 DOI: 10.1016/j.ijresmar.2013.03.006 Access Statistics for this article International Journal of Research in Marketing is currently edited by Roland Rust More articles in International Journal of Research in Marketing from Elsevier |
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