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Private Label Positioning and Product Line

Author

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  • Caprice, Stéphane

Abstract

This article examines (i) how retailers position private label products, (ii) why private labels are sold in some product categories but not in others, and why some national brand products may have difficulty in accessing retailers' shelves, (iii) why some private label products are positioned as "premium" brands, and (iv) how consumers' surplus and total welfare are affected by private labels. We find that private label positioning leads to less differentiation in product category, which structurally changes a retailer's product line in return. Consumer welfare and total welfare are lower.

Suggested Citation

  • Caprice, Stéphane, 2017. "Private Label Positioning and Product Line," TSE Working Papers 17-816, Toulouse School of Economics (TSE).
    • Handle: RePEc:tse:wpaper:31759
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    Cited by:

    1. Zheng, Hong & Wu, Huamin & Tian, Lin, 2022. "Healthcare service enhancement with patient search," Journal of Business Research, Elsevier, vol. 152(C), pages 398-409.
    2. Zhiqi Chen & Heng Xu, 2021. "Private labels and product quality under asymmetric information," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 30(4), pages 743-759, November.
    3. Meilin Ma & Ralph Siebert, 2021. "The Impact of Private Label Introduction on Assortment, Prices, and Profits of Retailers," CESifo Working Paper Series 9380, CESifo.
    4. Bo Liao & Candace A. Yano & Minakshi Trivedi, 2020. "Optimizing Store‐Brand Quality: Impact of Choice of Producer and Channel Price Leadership," Production and Operations Management, Production and Operations Management Society, vol. 29(1), pages 118-137, January.

    More about this item

    Keywords

    Private Label; National brand; Product Line;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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