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Will they return? Getting private label consumers to come back: Price, promotion, and new product effects

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  • Abril, Carmen
  • Sanchez, Joaquin

Abstract

Using a hazard model specification with two years of consumer panel data, this study simultaneously quantifies the effects of price gaps, non-monetary promotions, and new products on consumer switching from private labels back to manufacturer brands. The research focuses on the switching phenomena, rather than choice, such that time is a relevant variable. According to the results, non-monetary promotions and new products are more effective for recovering consumers than price gap reductions. These findings underscore the importance of understanding how consumers perceive the value of manufacturer brands.

Suggested Citation

  • Abril, Carmen & Sanchez, Joaquin, 2016. "Will they return? Getting private label consumers to come back: Price, promotion, and new product effects," Journal of Retailing and Consumer Services, Elsevier, vol. 31(C), pages 109-116.
    • Handle: RePEc:eee:joreco:v:31:y:2016:i:c:p:109-116
    DOI: 10.1016/j.jretconser.2016.03.010
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    Cited by:

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    4. Kirsten Victory & Magda Nenycz-Thiel & John Dawes & Arry Tanusondjaja & Armando Maria Corsi, 2021. "How common is new product failure and when does it vary?," Marketing Letters, Springer, vol. 32(1), pages 17-32, March.
    5. Mao, Zhaofang & Du, Zelin & Yuan, Ruiying & Miao, Qiqi, 2022. "Short-term or long-term cooperation between retailer and MCN? New launched products sales strategies in live streaming e-commerce," Journal of Retailing and Consumer Services, Elsevier, vol. 67(C).
    6. Joaquin Sanchez & Carmen Abril & Michael Haenlein, 2020. "Competitive spillover elasticities of electronic word of mouth: an application to the soft drink industry," Journal of the Academy of Marketing Science, Springer, vol. 48(2), pages 270-287, March.

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