National brands and store brands: Competition through public quality labels

Daniel Hassan · Sylvette Monier‐Dilhan

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Consumer Market Behavior and Pricing Economics of Agriculture and Food Markets Organic Food and Agriculture

Abstract

In this article the authors study one aspect of the proliferation of quality labels in the agro-food sector: the coexistence of two signs on one same product and its consequences on the value of each sign. The context is that of the competition between national brands and private labels on a certain number of goods carrying a public quality label. The authors show that the value of a sign decreases when it is combined with another one on the same product. This result is verified for six products involving four quality labels. This allows for an interpretation of retailers' strategy concerning their private labels. [EconLit Classification: D120]. © 2006 Wiley Periodicals, Inc. Agribusiness 22: 21–30, 2006.

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References

1974Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition 1997Why Store Brand Penetration Varies by Retailer 1995The Introduction and Performance of Store Brands 1997Estimation of a Hedonic Price Equation for Bordeaux Wine: Does Quality Matter?1997The Use of Quality and Reputation Indicators by Consumers: The Case of Bordeaux Wine 1995W hy R etailers S ell P rivate L abels 1995Hedonic price functions and the measurement of preferences: The case of Swedish wine consumers 2004Store Brands: Who Buys Them and What Happens to Retail Prices When They Are Introduced?

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