The Nature and Benefits of National Brand/Private Label Competition

The article highlights the history of national brand/private label competition. Itargues that the private labels of large retail chains possess unique competitiveweapons to constrain the market power of powerful national brands that are notavailable to rival manufacturers' brands. Consumer welfare is maximized whenprivate labels and national brands compete vigorously rather than when eitherone is too dominant. There is some ominous recent evidence that the vigor ofnational brand/private label competition is sometimes being diminished bycollusion between the two kinds of brands.

[1]  W. Bowman.  Resale Price Maintenance-A Monopoly Problem , 1952 .

[2]  R. Steiner,et al.  Does Advertising Lower Consumer Prices? , 1973 .

[3]  R. Steiner,et al.  Category Management - A Pervasive New Vertical/Horizontal Format , 2001 .

[4]  Joan Robinson,et al.  The Economic Effects of Advertising. , 1942 .

[5]  Pradeep K. Chintagunta,et al.  Investigating Category Pricing Behavior at a Retail Chain , 2002 .

[6]  Dorothea Braithwaite,et al.  The Economic Effects of Advertisement , 1928 .

[7]  Donald R. Lehmann,et al.  Revenue Premium as an Outcome Measure of Brand Equity , 2003 .

[8]  R. Steiner,et al.  The inverse association between the margins of manufacturers and retailers , 1993 .

[9]  K. Sudhir,et al.  Does Store Brand Patronage Improve Store Patronage? , 2004 .

[10]  R. Schmalensee.  On the use of economic models in antitrust : the Realemon case , 1979 .

[11]  Emily Fogg-Meade.  The Place of Advertising in Modern Business , 1901, Journal of Political Economy.

[12]  J. Connor,et al.  Estimates of Consumer Loss Due to Monopoly in the U.S. Food Manufacturing Industries , 1979 .

[13]  Thomas F. Schutte,et al.  Brand policy determination , 1969 .

[14]  T. Gabrielsen,et al.  Private Labels, Price Rivalry, and Public Policy ¤ , 2000 .

[15]  R. Sethuraman.  A Model of how Discounting High-Priced Brands Affects the Sales of Low-Priced Brands , 1996 .

[16]  C. F. Phillips.  Industrial Market Structure and Economic Performance , 1971 .

[17]  Pradeep K. Chintagunta,et al.  Store Brands: Who Buys Them and What Happens to Retail Prices When They Are Introduced? , 2004 .

[18]  V. Srinivasan,et al.  The Asymmetric Share Effect: An Empirical Generalization on Cross-Price Effects , 2002 .

[19]  Florian Zettelmeyer,et al.  The Strategic Positioning of Store Brands in Retailer - Manufacturer Bargaining , 2000 .

[20]  Ronald W. Cotterill,et al.  Market Share and Price Setting Behavior for Private Labels and National Brands , 2000 .

[21]  Robert C. Blattberg,et al.  Price-Induced Patterns of Competition , 1989 .

[22]  Stephen J. Hoch,et al.  Why Store Brand Penetration Varies by Retailer , 1997 .

[23]  Stephen J. Hoch,et al.  Shelf management and space elasticity , 1994 .

[24]  Ronald T. Wilcox,et al.  Private-Labels and the Channel Relationship: A Cross-Category Analysis , 1998 .

[25]  John A. Quelch,et al.  Brands Versus Private Labels: Fighting to Win , 1996 .

[26]  K. Sivakumar,et al.  Quality Tier Competition: How Price Change Influences Brand Choice and Category Choice , 1997 .

[27]  R. Steiner.  Intraband Competition—Stepchild of Antitrust , 1991 .

[28]  Leonard M. Lodish,et al.  Store Brands and Category Management , 1998 .

[29]  Jagmohan S. Raju,et al.  Investigating the Cross-Category Effects of Store Brands , 2004 .

[30]  R. Sethuraman.  What Makes Consumers Pay More for National Brands than for Store Brands - Image or Quality? , 2001 .

[31]  K. Sivakumar,et al.  Quality Tier Competition: How Price Change Influences Brand Choice and Category Choice , 1997 .

[32]  R. S. Hancock.  Dynamic marketing for a changing world : proceedings of the 43rd National Conference of the American Marketing Assocation, June 15, 16, 17, 1960 , 1960 .