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Effects of the private-label invasion in food industries

Michael Ward (), Jay Shimshack, Jeffrey Perloff and J. Michael Harris

MPRA Paper from University Library of Munich, Germany

Abstract: Using supermarket scanner data, we test a variety of hypotheses from trade journals about the invasion of private-label food products. According to conventional industry wisdom, name-brand firms defended their brands against new private-label products by lowering their prices, engaging in additional promotional activities, and increasingly differentiating their products. Our empirical evidence is inconsistent with these beliefs.

Keywords: private label; entry; price; promotional activity; differentiation; supermarket (search for similar items in EconPapers)
JEL-codes: Q13 D4 L1 (search for similar items in EconPapers)
Date: 2002-11
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Published in American Journal of Agricultural Economics 4.84(2002): pp. 961-973

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