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Author:Soberman, D. A.
Parker, P. M.
Title:The economics of quality-equivalent store brands
Journal:International Journal of Research in Marketing
2006 : VOL. 23:2, p.125-139
Index terms:retailing
brands
Freeterms:store brands
Language:eng
Abstract:The emergence and growth of low priced quality-equivalent store brands has been a key change in the retail environment over the last 20 years. National brand manufacturers with popular products seem to help retailers by supplying them with quality-equivalent store brands that are then sold for lower prices. However, empirical research has found that this phenomenon often leads to higher average category prices. This paper shows that when both the manufacturer and the retailer have market power, the launch of a quality-equivalent store brand by the retailer can lead to higher average category prices. Thus, both the manufacturer and the retailer can benefit with the launch of quality-equivalent store brands.
SCIMA record nr: 264218
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