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Explaining National Brands and Private Labels Price Differentials: A Theoretical Model

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Advances in National Brand and Private Label Marketing

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

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Abstract

In the rapidly changing business environment of today, retailers’ private labels, and its associated power, can be a critical element to help retailers distinguish from competitors and to compete with national brands manufacturers. The present research suggests that the price differentials between NBs and PLs can be explained simultaneously by two distinctive factors: (1) retailers power and, (2) specific product categories characteristics. To study this phenomenon, the authors propose a theoretical modeling approach to estimate across multiple categories and retailing chains these two effects. This model allows its application in markets with different concentrations levels, testing for the importance of the market structure in determining retailers’ power.

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Author information

Authors and Affiliations

  1. ISEG—Lisbon School of Economics & Management, Universidade de Lisboa, Lisbon, Portugal

    Pedro Verga Matos

  2. UCP—Católica Lisbon School of Business & Economics, Universidade Católica Portuguesa, Lisbon, Portugal

    Rita Coelho do Vale

Authors
  1. Pedro Verga Matos
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  2. Rita Coelho do Vale
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Corresponding author

Correspondence to Pedro Verga Matos .

Editor information

Editors and Affiliations

  1. Department of Business Administration, University of Granada, Granada, Spain

    Francisco J. Martínez-López

  2. Department of Economics and Business, University of Almería, Almería, Spain

    Juan Carlos Gázquez-Abad

  3. Department of Marketing, Tilberg University, LE Tilburg, The Netherlands

    Els Gijsbrecht

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Matos, P.V., do Vale, R.C. (2016). Explaining National Brands and Private Labels Price Differentials: A Theoretical Model. In: Martínez-López, F., Gázquez-Abad, J., Gijsbrecht, E. (eds) Advances in National Brand and Private Label Marketing. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-39946-1_10

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