Publication: How category characteristics affect the number of store brands offered by the retailer: a model and empirical analysis
Program
KU-Authors
KU Authors
Co-Authors
Raju, Jagmohan S.
Publication Date
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Type
Embargo Status
Journal Title
Journal ISSN
Volume Title
Alternative Title
Abstract
Our research examines why retailers offer, not one, but multiple store brands in some product categories. More specifically, we are interested in how certain product category characteristics affect the number of store brands. We model a product category consisting of two incumbent national brands that may differ in strength. The retailer may introduce one or two store brands depending on which maximizes category profits. Our analysis suggests that the retailer is likely to carry two store brands in categories where (i) the national brands are similar in strength; and (ii) the price sensitivity between the national brands is low. Interestingly, the conditions that support the introduction of more than one store brand are quite different than the conditions that would facilitate the introduction of additional national brands. We provide empirical evidence that support our model-based predictions.
Source
Publisher
Elsevier
Subject
Business
Citation
Has Part
Source
Journal of Retailing
Book Series Title
Edition
DOI
10.1016/j.jretai.2004.10.004