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Private Label Products and Consumer Income: Is There a Curvilinear Relationship?

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  • Jones, Eugene

Abstract

Supermarket scanner data are analyzed for five product categories across three income groups to test the premise of a curvilinear relationship between income and private labels (PLs). The three income groups are lower-, moderate-, and high-income consumers and the premise tested is that moderate-income consumers are far more inclined to purchase PLs than lower- and higher- income consumers. The five product categories selected for this study areL butter and margarine; frozen potatoes; ice cream; jams, jelly and peanut butter; and yogurt. Statistical results derived for these product categories offer no support for a curvilinear relationship between income and PLs. Lower-income consumers are shown to be more prone to purchase PLs than moderate- and higher-icnome consumers across all product groups

Suggested Citation

  • Jones, Eugene, 2016. "Private Label Products and Consumer Income: Is There a Curvilinear Relationship?," Journal of Food Distribution Research, Food Distribution Research Society, vol. 47(1), pages 1-9.
    • Handle: RePEc:ags:jlofdr:232294
    DOI: 10.22004/ag.econ.232294
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    References listed on IDEAS

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    1. Tülin Erdem & Michael P. Keane, 1996. "Decision-Making Under Uncertainty: Capturing Dynamic Brand Choice Processes in Turbulent Consumer Goods Markets," Marketing Science, INFORMS, vol. 15(1), pages 1-20.
    2. Drewnowski, A. & Aggarwal, A. & Hurvitz, P.M. & Monsivais, P. & Moudon, A.V., 2012. "Obesity and supermarket access: Proximity or price?," American Journal of Public Health, American Public Health Association, vol. 102(8), pages 74-80.
    3. Eugene Jones, 2014. "Consumer Preferences for National Brands and Private Labels: Do Business Cycles Matter?," Springer Proceedings in Business and Economics, in: Juan Carlos Gázquez-Abad & Francisco J. Martínez-López & Irene Esteban-Millat & Juan Antonio Mondéja (ed.), National Brands and Private Labels in Retailing, edition 127, pages 91-101, Springer.
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