Journal
JOURNAL OF BUSINESS RESEARCH
Volume 66, Issue 1, Pages 60-66Publisher
ELSEVIER SCIENCE INC
DOI: 10.1016/j.jbusres.2011.07.023
Keywords
Private label; Own label; National brand; Competition; Duplication of purchase; Price promotions
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Examining how buyers of one private label (PL) in a product category also cross-purchase the private labels of competing retailers in the same category is the focus of this study. Understanding consumer cross-purchasing of PLs is important to retailers, who use PLs as one tactic to differentiate from other retailers; and important to manufacturers, who compete against PLs. A higher level of PL cross-purchasing indicates heightened competitive intensity among the PIs of rival retailers. Results across 27 categories indicate that PLs compete against national brands (NBs) within-store, but also compete against the PLs of other retailers across stores. Heightened competition among the PLs of different retailers occurs in categories with higher purchase frequency: in which the average PL price is well below the average NB price; and in categories with higher levels of manufacturer brand price promotions. (C) 2011 Elsevier Inc. All rights reserved.
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