Skip to main content

Are National Brands More Promotion Elastic Than Store Brands?

  • Conference paper
Book cover Advances in National Brand and Private Label Marketing

Part of the book series: Springer Proceedings in Business and Economics ((SPBE))

  • 1096 Accesses

Abstract

Are national brands more discount elastic and display/feature elastic than store brands? This research tests this traditional view using a dataset comprising of 18 brands from five retail chains, 424 SKUs and 24,260 observations that account for over 90 % of the Carbonated Soft Drinks category sales. Our results indicate that, on aggregate, there are no significant differences in response elasticities between national brands and store brands. However, leading national brands in popular subcategories conform to a large extent to the traditional view of being more promotion elastic than store brands. Implications of these findings for managers and directions for future research are discussed.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Allenby, G., & Rossi, P. E. (1991). Quality perceptions and asymmetric switching between brands. Marketing Science, 10(Summer), 185–204.

    Article  Google Scholar 

  • Blattberg, R. C., & Wisniewski, K. J. (1989). Price-induced patterns of competition. Marketing Science, 8(4), 291–309.

    Article  Google Scholar 

  • Bronnenberg, B., & Wathieu, L. (1996). Asymmetric promotion effects and brand positioning. Marketing Science, 15(4), 379–394.

    Article  Google Scholar 

  • Macé, S., & Neslin, S. A. (2004). The determinants of pre-and postpromotion dips in sales of frequently purchased goods. Journal of Marketing Research, 41(3), 339–350.

    Article  Google Scholar 

  • R Development Core Team. (2004). R: A language and environment for statistical computing.

    Google Scholar 

  • Sethuraman, R. (1995). A meta-analysis of national brand and store brand cross-promotional price elasticities. Marketing Letters, 6(4), 275–286.

    Article  Google Scholar 

  • Sethuraman, R., Srinivasan, V., & Kim, D. (1999). Asymmetric and neighborhood cross price effects: Empirical generalizations. Marketing Science, 18(1), 23–41.

    Article  Google Scholar 

  • Voleti, S., & Ghosh, P. (2013). A robust approach to measure latent, time-varying equity in hierarchical branding structures. Quantitative Marketing and Economics, 11, 289–319.

    Article  Google Scholar 

  • Voleti, S., & Raj, S. (2015). Testing the traditional view of national brands and store brands: A comparison of response elasticities and intangible brand effects (Working Paper). Hyderabad: Indian School of Business.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Raj Sethuraman .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2015 Springer International Publishing Switzerland

About this paper

Cite this paper

Voleti, S., Sethuraman, R. (2015). Are National Brands More Promotion Elastic Than Store Brands?. In: Martínez-López, F., Gázquez-Abad, J., Sethuraman, R. (eds) Advances in National Brand and Private Label Marketing. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-20182-5_7

Download citation

Publish with us

Policies and ethics