Effects of the Private–Label Invasion in Food Industries |
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| Authors: | Michael B. Ward,Jay P. Shimshack,Jeffrey M. Perloff,& J. Michael Harris |
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| Affiliation: | University of California, Berkeley and member of the Giannini Foundation, Tuffs University and member of the Giannini Foundation, University of California, Berkeley;, University of California, Berkeley and member of the Giannini Foundation;, The Economic Research Service, U.S. Department of Agriculture; |
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| Abstract: | Using supermarket scanner data, we test a variety of hypotheses from trade journals about the invasion of private–label food products. According to conventional industry wisdom, name–brand firms defended their brands against new private–label products by lowering their prices, engaging in additional promotional activities, and increasingly differentiating their products. Our empirical evidence is inconsistent with these beliefs. |
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