IDEAS home Printed from https://ideas.repec.org/a/eee/eurman/v15y1997i3p220-235.html
   My bibliography  Save this article

National brands versus private labels: An empirical study of competition, advertising and collusion

Author

Listed:
  • Parker, Philip
  • Kim, Namwoon

Abstract

This article considers competition between nationally advertised brands and quality-equivalent privatelabel brands (a form of store, house or own-label branding). Philip Parker and Namwoon Kim investigate the impact of advertising on market power across brands. Supporting recent theoretical arguments (though contradicting others), the industry study reveals that heavy advertising among national brands can increase prices, revenues, and profits for both national brands and private-label brands. Using a representative category, the authors report nine tests to support the conclusion that the 'battle of private labels' may result in 'an alliance with private labels'. From a theoretical perspective, the study rejects the advertising as information hypothesis and the authors find that advertising sustains (significantly increases) market power and/or facilitates collusive strategies.

Suggested Citation

  • Parker, Philip & Kim, Namwoon, 1997. "National brands versus private labels: An empirical study of competition, advertising and collusion," European Management Journal, Elsevier, vol. 15(3), pages 220-235, June.
    • Handle: RePEc:eee:eurman:v:15:y:1997:i:3:p:220-235
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0263237397000030
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sodano, Valeria & Hingley, Martin, 2007. "Channel Management and differentiation strategies: A case study from the market for fresh produce," 105th Seminar, March 8-10, 2007, Bologna, Italy 7869, European Association of Agricultural Economists.
    2. G. R. Chen, 2014. "How do advertised brands benefit from private labels? An application of rational expectations models," Applied Economics, Taylor & Francis Journals, vol. 46(24), pages 2891-2902, August.
    3. M Esteban-Bravo & N Lado, 2011. "Brand value in horizontal alliances: the case of twin-cars," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(8), pages 1533-1542, August.
    4. Amrouche, Nawel & Zaccour, Georges, 2007. "Shelf-space allocation of national and private brands," European Journal of Operational Research, Elsevier, vol. 180(2), pages 648-663, July.
    5. Dawes, John & Nenycz-Thiel, Magda, 2013. "Analyzing the intensity of private label competition across retailers," Journal of Business Research, Elsevier, vol. 66(1), pages 60-66.
    6. C. Akbay & E. Jones, 2006. "Demand elasticities and price-cost margin ratios for grocery products in different socioeconomic groups," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 52(5), pages 225-235.
    7. Nierobisch, Tim & Toporowski, Waldemar & Dannewald, Till & Jahn, Steffen, 2017. "Flagship stores for FMCG national brands: Do they improve brand cognitions and create favorable consumer reactions?," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 117-137.
    8. Pritha Ghosh & Subrata Saha & Shamindra Nath Sanyal & Swati Mukherjee, 2021. "Positioning of private label brands of men’s apparel against national brands," Journal of Marketing Analytics, Palgrave Macmillan, vol. 9(3), pages 210-227, September.
    9. Cho, Young Sang & Rha, Hye-Su & Burt, Steve, 2015. "The impact of customer awareness of manufacturer name disclosure on retail brand attitudes and loyalty in Korea," Journal of Retailing and Consumer Services, Elsevier, vol. 22(C), pages 128-137.
    10. Anselmsson, Johan & Johansson, Ulf & Marañon, Antonio & Persson, Niklas, 2008. "The penetration of retailer brands and the impact on consumer prices—A study based on household expenditures for 35 grocery categories," Journal of Retailing and Consumer Services, Elsevier, vol. 15(1), pages 42-51.
    11. Domenico Morrone & Rosamartina Schena, 2021. "The Evolution of Private Labels in Food Proposals: The Case of the Top Four Italian Retailers and the Purchase Propensity of Consumers," International Journal of Business and Management, Canadian Center of Science and Education, vol. 14(3), pages 1-69, July.
    12. Li, Xun & Wang, Rui & Lopez, Rigoberto A., 2016. "Energy Shock and Price Adjustment: National Brands vs. Private Labels of Retail Milk Products," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235613, Agricultural and Applied Economics Association.
    13. Bonanno Alessandro & Lopez Rigoberto A., 2005. "Private Label Expansion and Supermarket Milk Prices," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 3(1), pages 1-18, February.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eurman:v:15:y:1997:i:3:p:220-235. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/115/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.