Author
Akçura, Munir Tolga, Sinapuelas, I. C., Wang, H. M. D.
Publication Date
2019
Publication Place
-
Emerald Publishing Limited
Subject
Promotions, Pricing, Private labels, Product assortment
Type
Periodical
Language
English
Digital
Yes
Manuscript
No
Library
Özyeğin University
Library Asset ID
1061-0421
Record ID
5eab45c5-5f26-49c7-8cc4-9678979b29c7
Library Location
Business Administration
Date
2019
Sample Text
Purpose-This paper aims to understand empirically how shares of standard and premium private label (PL) products affect a retailer's marketing mix decisions toward national brands (NBs).
Design/methodology/approach-Using a comprehensive store-level data set covering 52 categories and 130 stores of two retailer chains during 2003-2009, this paper examines how shares of standard and premium PLs affect retailer marketing strategies for NB retail prices, promotions and product assortments. The empirical analysis uses a simultaneous equations model estimated by the generalized method of moments approach and controls for endogeneity between PL shares and NB decisions and potential confounding variables including consumer, manufacturer and retailer factors.
Findings-Standard PL shares are associated positively with NB retail prices and negatively with NB promotions and assortments. In contrast, premium PL shares are associated positively with NB retail prices, promotions and assortments.
Research limitations/implications-The results indicate that retailers make strategic NB decisions through multitier PLs. Specifically, the evidence suggests that retailers use standard and premium PLs differently in promotion and assortment decisions toward NBs. NB manufacturers need to be cognizant of the increasing marketing power of retailers through their multitier PLs.
Originality/value-Prior research has mainly focused on the role of PLs as a strategic weapon to gain power in the channel and its impact on NB pricing decisions in a single PL context. After accounting for potential confounding factors (retailer, consumer and manufacturer) and endogeneity, the authors find empirical evidence that retailers appear to leverage standard and premium PLs differently in some marketing mix decisions toward NB. In particular, the results reveal PL performance to be a determinant of retailer NB assortment decisions.
DOI
10.1108/JPBM-10-2017-1623
Cilt
28
