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Confirming the price effects of private labels development

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

Economics Working Paper Archive (Toulouse) from French Institute for Agronomy Research (INRA), Economics Laboratory in Toulouse (ESR Toulouse)

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. ...French Abstract : Les auteurs étudient la réponse en prix des producteurs de marques nationales au développement des marques de distributeurs. Ils utilisent des données mensuelles d'achats issues d'un panel de consommateurs, concernant 218 produits alimentaires. Ils montrent que le développement des marques de distributeurs a un effet significatif sur les prix des marques nationales (144 cas sur 218), qui est positif (89%). Ils montrent aussi que l'augmentation des prix des marques nationales est, en partie, expliquée par une stratégie de différenciation des producteurs de marques nationales. Enfin, la réaction en prix des marques nationales est différente suivant le type des marques de distributeurs. Ce papier confirme, sur un plus grand nombre de produits, nos précédents résultats empiriques.

Keywords: PRIVATE LABELS; PRICING; EMPIRICAL MODELS; FOOD PRODUCTS; MARQUE DE DISTRIBUTEUR; DIFFERENCIATION DES PRODUITS; PRIX; CONSOMMATION DES MENAGES (search for similar items in EconPapers)
JEL-codes: D40 L81 Q13 (search for similar items in EconPapers)
Pages: 16 p.
Date: 2005
New Economics Papers: this item is included in nep-agr, nep-com, nep-mic and nep-mkt
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Working Paper: Confirming the Price Effects of Private Labels Development (2005) Downloads
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