Abstract

We study the price response of national brands to the development of private labels. Using monthly data from a consumer survey, we show that prices of national brands increase with the development of private labels. However, we also show that the price increase in national brand products is explained by a strategy of product differentiation. Finally, price reaction of national brands differs with the type of private labels they are facing.

Submitted: July 27, 2004 · Accepted: December 22, 2004 · Published: February 24, 2005

Recommended Citation

Bontemps, Christophe ; Orozco, Valerie; Réquillart, Vincent; and Trevisiol, Audrey (2005) "Price Effects of Private Label Development," Journal of Agricultural & Food Industrial Organization: Vol. 3 : Iss. 1, Article 3.
DOI: 10.2202/1542-0485.1086
Available at: http://www.bepress.com/jafio/vol3/iss1/art3