Store Brands: Who Buys Them and What Happens to Retail Prices When They Are Introduced?

摘要: In this paper we study store brand demand behavior by examining a panel ofhousehold level and store-level data in five stores located competing marketarea. We seek to address three fundamental questions from data. First, isthere link between loyalty loyalty? Second, does loyaltyraise choice probabilities? Third, if is introduced intoa category, what happens the retail prices of incumbent brands thecategory? find that negatively associated with loyalty,and increases likelihood purchase givencategory. mixed evidence on how retailer changes incumbentbrands when it introduces category. Category marketstructure measures are used help identify under conditions categoryprices fall or rise. A number robustness checks validate ourfindings.