Competing with channel partners: Supply chain conflict when retailers introduce store brands

Hans Sebastian Heese

64 citations0/0 files storedNaval Research Logistics (NRL)

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Supply Chain and Inventory Management Merger and Competition Analysis Consumer Market Behavior and Pricing

Abstract

Abstract Private‐label products are of increasing importance in many retail categories. While national‐brand products are designed by the manufacturer and sold by the retailer, the positioning of store‐brand products is under the complete control of the retailer. We consider a scenario where products differ on a performance quality dimension and we analyze how retailer–manufacturer interactions in product positioning are affected by the introduction of a private‐label product. Specifically, we consider a national‐brand manufacturer who determines the quality of its product as well the product's wholesale price charged to the retailer. Given the national‐brand quality and wholesale price, the retailer then decides the quality level of its store brand and sets the retail prices for both products. We find that a manufacturer can derive substantial benefits from considering a retailer's store‐brand introduction when determining the national brand's quality and wholesale price. If the retailer has a significant cost disadvantage in producing high‐quality products, the manufacturer does not need to adjust the quality of the national‐brand product, but he should offer a wholesale price discount to ensure its distribution through the retailer. If the retailer is competitive in providing products of high‐quality, the manufacturer should reduce this wholesale price discount and increase the national‐brand quality to mitigate competition. Interestingly, we find the retailer has incentive to announce a store‐brand introduction to induce the manufacturer's consideration of these plans in determining the national‐brand product quality and wholesale price. © 2010 Wiley Periodicals, Inc. Naval Research Logistics, 2010

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 64 citations exist upstream.

References

1978Monopoly and product quality 1984Market Segmentation, Self-Selection, and Product Line Design 2000Building Store Loyalty through Store Brands 1997Why Store Brand Penetration Varies by Retailer 1995The Introduction and Performance of Store Brands 1993When Do Private Labels Succeed 2002Positioning of Store Brands 1998Private Labels and the Channel Relationship: A Cross‐Category Analysis

Cited by

2018Supply chain coordination with customer returns and retailer's store brand product 2019Money-back guarantee and pricing decision with retailer's store brand 2021To introduce a store brand or not: Roles of market information in supply chains 2022Interacting with strategic waiting for store brand: Online selling format selection 2019Contract manufacturer’s encroachment strategy and quality decision with different channel leadership structures 2019Impact of In-Store Promotion and Spillover Effect on Private Label Introduction

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.