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The penetration of retailer brands and the impact on consumer prices - A study based on household expenditures for 35 grocery categories

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Author

Summary, in English

The aim of this study is to examine the relationship between retailer brand (RB) market shares and consumer prices. Furthermore it investigates whether changes in category price and expenditure are due to changes in customer purchase patterns or changes in relative price levels (price gap) of RBs and national brands (NBs). Data from the market research company GfK's consumer household panel, comprised of purchases made by 3000 Swedish households, for 35 randomly chosen grocery categories during the time period 2001–2004, is analysed. Results show a weak but significant negative relation between RB market share size, and the consumer prices in terms of household expenditures. The price level and changes in price level are first of all due to change in prices of the market leader and secondly due to changes in customer purchase patterns. The results also show some evidence that RBs have greater impact on prices initially, when the RB market share grows from 0% to 10%.

Publishing year

2008

Language

English

Pages

42-51

Publication/Series

Journal of Retailing and Consumer Services

Volume

15

Issue

1

Document type

Journal article

Publisher

Elsevier

Topic

  • Economics and Business
  • Business Administration

Keywords

  • Retailer brands
  • Private labels
  • Store brands
  • Purchase patterns
  • Consumer prices

Status

Published

ISBN/ISSN/Other

  • ISSN: 0969-6989