A SOCIOECONOMIC APPROACH TO ASSESSING PRICE COMPETITION BETWEEN PRIVATE LABELS AND NATIONAL BRANDS: THE CASE OF SHREDDED CHEESE

Min-Hsin Huang, David E. Hahn and Eugene Jones

No 21993, 2003 Annual meeting, July 27-30, Montreal, Canada from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: An LA/AIDS model is developed to estimate demand elasticities for packages of 8-oz shredded cheese for higher- and lower-income consumers. Data used in this study are scanner data for six supermarket stores in two distinct socioeconomic areas. Results show that: (1) lower-income shoppers are more price-sensitive than higher-income shoppers for both private labels and national brands; (2) compared with private labels, consumers are very sensitive to national brands price changes even in higher-income areas; (3) cross-price elasticities between private labels and national brands are all positive, i.e., private labels and national brands are substitutes in both lower- and higher-income stores; and (4) the number of promoted items does not have a statistically significant impact on sales; instead, the percentage of price discount affects sales for both private labels and national brands.

Keywords: Demand; and; Price; Analysis (search for similar items in EconPapers)
Pages: 26
Date: 2003
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea03:21993

DOI: 10.22004/ag.econ.21993

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