Store Brands: Who Buys Them and What Happens to Retail Prices When They Are Introduced?

In this paper we study store brand demand behavior by examining a panel of household level and store-level data in five stores located in a competing market area. We seek to address three fundamental questions from this data. First, is there a link between store loyalty and brand loyalty? Second, do...

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Main Authors: Bonfrer, Andre, Chintagunta, Pradeep K.
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2003
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Online Access:https://ink.library.smu.edu.sg/lkcsb_research/1912
https://ink.library.smu.edu.sg/context/lkcsb_research/article/2911/viewcontent/1503paper.pdf
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Institution: Singapore Management University
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spelling sg-smu-ink.lkcsb_research-29112018-07-09T07:37:13Z Store Brands: Who Buys Them and What Happens to Retail Prices When They Are Introduced? Bonfrer, Andre Chintagunta, Pradeep K. In this paper we study store brand demand behavior by examining a panel of household level and store-level data in five stores located in a competing market area. We seek to address three fundamental questions from this data. First, is there a link between store loyalty and brand loyalty? Second, does store loyalty raise store brand choice probabilities? Third, if a store brand is introduced into a category, what happens to the retail prices of the incumbent brands in the category? We find that store loyalty is negatively associated with brand loyalty, and that store loyalty increases the likelihood of a store brand purchase in a given category. We find mixed evidence on how the retailer changes prices of incumbent brands when it introduces a store brand to the category. Category level market structure measures are used to help identify under what conditions the category prices fall or rise. A number of robustness checks are used to help validate our findings. 2003-10-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/lkcsb_research/1912 https://ink.library.smu.edu.sg/context/lkcsb_research/article/2911/viewcontent/1503paper.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection Lee Kong Chian School Of Business eng Institutional Knowledge at Singapore Management University Marketing
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic Marketing
spellingShingle Marketing
Bonfrer, Andre
Chintagunta, Pradeep K.
Store Brands: Who Buys Them and What Happens to Retail Prices When They Are Introduced?
description In this paper we study store brand demand behavior by examining a panel of household level and store-level data in five stores located in a competing market area. We seek to address three fundamental questions from this data. First, is there a link between store loyalty and brand loyalty? Second, does store loyalty raise store brand choice probabilities? Third, if a store brand is introduced into a category, what happens to the retail prices of the incumbent brands in the category? We find that store loyalty is negatively associated with brand loyalty, and that store loyalty increases the likelihood of a store brand purchase in a given category. We find mixed evidence on how the retailer changes prices of incumbent brands when it introduces a store brand to the category. Category level market structure measures are used to help identify under what conditions the category prices fall or rise. A number of robustness checks are used to help validate our findings.
format text
author Bonfrer, Andre
Chintagunta, Pradeep K.
author_facet Bonfrer, Andre
Chintagunta, Pradeep K.
author_sort Bonfrer, Andre
title Store Brands: Who Buys Them and What Happens to Retail Prices When They Are Introduced?
title_short Store Brands: Who Buys Them and What Happens to Retail Prices When They Are Introduced?
title_full Store Brands: Who Buys Them and What Happens to Retail Prices When They Are Introduced?
title_fullStr Store Brands: Who Buys Them and What Happens to Retail Prices When They Are Introduced?
title_full_unstemmed Store Brands: Who Buys Them and What Happens to Retail Prices When They Are Introduced?
title_sort store brands: who buys them and what happens to retail prices when they are introduced?
publisher Institutional Knowledge at Singapore Management University
publishDate 2003
url https://ink.library.smu.edu.sg/lkcsb_research/1912
https://ink.library.smu.edu.sg/context/lkcsb_research/article/2911/viewcontent/1503paper.pdf
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