Defensive Strategy Against a Private Label: Building Brand Equity

S. Chan Choi ()
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S. Chan Choi: Rutgers Business School—Newark and New Brunswick

A chapter in National Brands and Private Labels in Retailing, 2014, pp 53-59 from Springer

Abstract: Abstract We build a game-theoretic model of price competition between a national brand manufacturer and a retailer that also sells its private label. In particular, we examine brand-equity building as a strategy for the national brand manufacturer. We find that brand building should be the first line of defense instead of aggressively cutting the wholesale price. Not only the national brand but also the retailer can benefit from it, which can justify cost sharing of brand-building efforts with the retailer.

Keywords: Private Label; Price Competition; Brand Equity; Channel Distribution (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-319-07194-7_5

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DOI: 10.1007/978-3-319-07194-7_5

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