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Effects of the private-label invasion in food industries

Ward, Michael B. and Shimshack, Jay P. and Perloff, Jeffrey M. and Harris, J. Michael (2002): Effects of the private-label invasion in food industries. Published in: American Journal of Agricultural Economics , Vol. 84, No. 4 (November 2002): pp. 961-973.

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Abstract

Using supermarket scanner data, we test a variety of hypotheses from trade journals about the invasion of private-label food products. According to conventional industry wisdom, name-brand firms defended their brands against new private-label products by lowering their prices, engaging in additional promotional activities, and increasingly differentiating their products. Our empirical evidence is inconsistent with these beliefs.

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