Skip to Main content Skip to Navigation
Journal articles

Consumers' decision between private labels and national brands in a retailer's chain: a mixed multinomial logit application?

Abstract : We analyze the determinants of consumers’ brand choice between national brands and private labels (both ‘me-too’ and ‘high quality’ store brand) within one retailer chain. We use a scanner panel dataset for the year 2001. Our analysis relies on a discrete choice model (a multinomial mixed logit approach) which allows the estimated parameters to vary across consumers. We find that the standard private label (me-too), independently of the price effect,performs better than all national brands in terms of consumers’ utility. Another result is that the high-quality private label does not reach its target yet in term of consumers’ acceptance. Last, it appears that households’ objective socioeconomic variables (income, education) do not play any role in private label perception, whereas objective consumption behaviour (store loyalty) clearly favours store brand perception. Indeed, we find that high-loyal consumers have a higher PL demand than low-loyal ones, whatever the price of the PL. Such a result explains why retailers devote so much importance to their loyalty program: loyalty cards, store coupons, etc.
Document type :
Journal articles
Complete list of metadata

https://hal.inrae.fr/hal-02654632
Contributor : Migration Prodinra <>
Submitted on : Friday, May 29, 2020 - 9:44:10 PM
Last modification on : Tuesday, September 7, 2021 - 3:37:02 PM

Identifiers

  • HAL Id : hal-02654632, version 1
  • PRODINRA : 27944

Collections

Citation

Fabian Berges, Daniel Hassan, Sylvette Monier Dilhan, Helene Raynal. Consumers' decision between private labels and national brands in a retailer's chain: a mixed multinomial logit application?. Gestion 2000, Recherches et Publications en Management A.S.B.L., 2009, 3, pp.41-57. ⟨hal-02654632⟩

Share

Metrics

Record views

20