STORE VS. NATIONAL BRANDS: A PRODUCT LINE MIX PUZZLE

José J. Sempere Monerris (), Rafael Moner Colonques () and Amparo Urbano
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José J. Sempere Monerris: Universitat de València
Rafael Moner Colonques: Universitat de València
Authors registered in the RePEc Author Service: José J. Sempere-Monerris

Working Papers. Serie AD from Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie)

Abstract: This paper examines retailers' strategic decisions about store brand introduction when each retailer can stock a limited number of brands. The different product line mix equilibria depend on demand parameters that measure the cross-effect across national and store brands and the cross-effect within each brand type, thus leading to a simple testable implication. Store brand introduction is determined by the combination of the three effects that result from replacing a national brand by a store brand; the direct effect, the exclusivity effect and the in-store effect. Interestingly enough, we identify conditions under which similar retailers take different decisions concerning their product line mix.

Keywords: store brands; retail duopoly; product line mix (search for similar items in EconPapers)
JEL-codes: L13 L23 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2007-04
New Economics Papers: this item is included in nep-com and nep-mkt
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Persistent link: https://EconPapers.repec.org/RePEc:ivi:wpasad:2007-10

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