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Confirming the Price Effects of Private Labels Development

Christophe Bontemps (), Valérie Orozco () and Vincent Réquillart ()

No 24735, 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark from European Association of Agricultural Economists

Abstract: We study the price response of national brands to the development of private labels. We use monthly data from a consumer survey reporting their purchases for 218 food products. We show that when private labels have a significant effect on national brands prices (144 cases over 218), that is positive (89%). We also show that the increase in the prices of 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. This paper confirms, on a larger number of products, previous empirical results.

Keywords: Demand; and; Price; Analysis (search for similar items in EconPapers)
Pages: 17
Date: 2005
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaae05:24735

DOI: 10.22004/ag.econ.24735

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