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A meta-analysis of national brand and store brand cross-promotional price elasticities
Authors:Raj Sethuraman
Institution:(1) Department of Marketing, College of Business Administration, University of Iowa, 108 Pappajohn Business Building, 52242 Iowa City, IA
Abstract:This paper investigates whether price discounts by national brands influence private-label sales and vice versa through meta-analysis of 261 cross-price elasticity estimates from sixteen product-chains. On average, price reductions by national brands and private labels have more or less equal influence on each others' sales. However, there is greater variation in the effect of private-label price cuts across national brands. National brands with large market shares decrease private-label sales through price cuts but are seldom affected by private-label discounts. National brands with lower relative price have greater influence on private-label sales and are also affected more by private-label price cuts.
Keywords:pricing  promotions  private labels  meta-analysis
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