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Empirical analysis of competitive interaction in food product categories

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  • William P. Putsis

    (London Business School, Sussex Place, Regent's Park, London NW1 4SA, United Kingdom)

Abstract

This article provides an overview of recent research on estimating competitive interaction in food product categories. In particular, the focus of this review is on research using scanner data conducted at the disaggregate (e.g., store, chain or local market) level, including empirical studies of vertical (i.e., within-channel) conduct. Studies addressing the competitive interaction on price, as well as non-price variables (e.g., in-store display and feature advertising) are considered. The author first describes the methodologies available for measuring the competitive interaction between firms and then briefly summarizes recent empirical developments. Given the complexity of the interactions that take place in practice, it is argued that much of the richness of actual competitive behavior is lost in aggregate analysis. Competitive interaction is the result of a complex set of variables and influences-demand side factors, market and industry structure, firm “personality,” and category characteristics all interact in a complex fashion to determine strategic behavior of retailers and manufacturers. [Econ-Lit citations: L110, L130, L660] © 1999 John Wiley & Sons, Inc.

Suggested Citation

  • William P. Putsis, 1999. "Empirical analysis of competitive interaction in food product categories," Agribusiness, John Wiley & Sons, Ltd., vol. 15(3), pages 295-311.
    • Handle: RePEc:wly:agribz:v:15:y:1999:i:3:p:295-311
    DOI: 10.1002/(SICI)1520-6297(199922)15:3<295::AID-AGR1>3.0.CO;2-T
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    References listed on IDEAS

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    2. 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.
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    4. W. Erno Kuiper & Matthew T.G. Meulenberg, 2002. "Vertical price leadership: A cointegration analysis," Agribusiness, John Wiley & Sons, Ltd., vol. 18(3), pages 317-331.

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