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The penetration of retailer brands and the impact on consumer prices—A study based on household expenditures for 35 grocery categories

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  • Anselmsson, Johan
  • Johansson, Ulf
  • Marañon, Antonio
  • Persson, Niklas

Abstract

The aim of this study is to examine the relationship between retailer brand (RB) market shares and consumer prices. Furthermore it investigates whether changes in category price and expenditure are due to changes in customer purchase patterns or changes in relative price levels (price gap) of RBs and national brands (NBs). Data from the market research company GfK's consumer household panel, comprised of purchases made by 3000 Swedish households, for 35 randomly chosen grocery categories during the time period 2001–2004, is analysed. Results show a weak but significant negative relation between RB market share size, and the consumer prices in terms of household expenditures. The price level and changes in price level are first of all due to change in prices of the market leader and secondly due to changes in customer purchase patterns. The results also show some evidence that RBs have greater impact on prices initially, when the RB market share grows from 0% to 10%.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:joreco:v:15:y:2008:i:1:p:42-51
    DOI: 10.1016/j.jretconser.2007.03.001
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    2. Fornari, Edoardo & Fornari, Daniele & Grandi, Sebastiano & Menegatti, Mario, 2013. "The influence of retailing-mix levers on private label market share: The case of the Italian FMCG market," Journal of Retailing and Consumer Services, Elsevier, vol. 20(6), pages 617-624.
    3. Mr.K.Sadasivan Author_Email: & Dr.C.Samudhra rajakumar & Dr.M.Syed Zafar, 2011. "Role Of Involvement In Predicting Loyalty Behaviour Of Consumers Toward Private Store Apparel Brands – A Study In Chennai," 2nd International Conference on Business and Economic Research (2nd ICBER 2011) Proceeding 2011-192, Conference Master Resources.
    4. Abosag, Ibrahim & Ramadan, Zahy B. & Baker, Tom & Jin, Zhongqi, 2020. "Customers' need for uniqueness theory versus brand congruence theory: The impact on satisfaction with social network sites," Journal of Business Research, Elsevier, vol. 117(C), pages 862-872.
    5. Olbrich, Rainer & Grewe, Gundula, 2013. "Proliferation of private labels in the groceries sector: The impact on category performance," Journal of Retailing and Consumer Services, Elsevier, vol. 20(2), pages 147-153.
    6. Romaniuk, Jenni & Dawes, John & Nenycz-Thiel, Magda, 2014. "Generalizations regarding the growth and decline of manufacturer and store brands," Journal of Retailing and Consumer Services, Elsevier, vol. 21(5), pages 725-734.
    7. Anselmsson, Johan & Bondesson, Niklas, 2015. "Brand value chain in practise; the relationship between mindset and market performance metrics: A study of the Swedish market for FMCG," Journal of Retailing and Consumer Services, Elsevier, vol. 25(C), pages 58-70.
    8. Woodside, Arch G. & Ozcan, Timucin, 2009. "Customer choices of manufacturer versus retailer brands in alternative price and usage contexts," Journal of Retailing and Consumer Services, Elsevier, vol. 16(2), pages 100-108.
    9. Ahsan Ul Haq & Irfan Ahmad Kahloon & Aamir Saleem, 2019. "Impact of Brand Label on Purchase Intention of a Customer," Journal of Social and Development Sciences, AMH International, vol. 10(2), pages 44-51.
    10. Baumann, Chris & Hamin, Hamin, 2014. "Premium generic brand (PGB) choice vis-Ã -vis generic and national brands: A scenario comparison for self-use, family consumption and gift giving in a food versus non-food and cross-cultural context," Journal of Retailing and Consumer Services, Elsevier, vol. 21(4), pages 492-501.
    11. Boyle, Peter J. & Lathrop, E. Scott, 2013. "The value of private label brands to U.S. consumers: An objective and subjective assessment," Journal of Retailing and Consumer Services, Elsevier, vol. 20(1), pages 80-86.
    12. Qiu, Jiaqing & Li, Xiangyong & Duan, Yongrui & Chen, Mengxi & Tian, Peng, 2020. "Dynamic assortment in the presence of brand heterogeneity," Journal of Retailing and Consumer Services, Elsevier, vol. 56(C).

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