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Title: Performance of store brands : a cross-country analysis of consumer store-brand preferences, perceptions, and risk
Authors: Erdem, Tulin
Zhao, Ying
Valenzuela, Ana
Keywords: House brands
Market research
Mathematical models
Market shares
Market positioning
Grocery stores
Consumer attitudes
Issue Date: Feb-2004
Citation: Journal of marketing research, v. 41, no. 1, Feb. 2004, p. 86-100
Abstract: Store brands, or private labels, are owned, controlled, and sold exclusively by retailers. Store brands have been gaining an increasing share of the market in most consumer product categories. The trend towards higher store concentration, global recession, and changing consumer habits also influence the growth of store brands. Nevertheless, the market shares of store brands vary by product class and across countries. For example, in the grocery industry, store brands have 45% market share in Switzerland, 37% in the United Kingdom, 22% in Canada, but only 12% in the United States. Differences in market concentration, store-brand positioning, and consumer price sensitivity are responsible for this phenomenon. Nevertheless, there has been surprisingly little empirical work done in marketing to study the reasons that underlie the relative strength of store brands in Europe and the United States. This study empirically studies the notion that the differential success of store brands in the United States versus in Europe is the higher brand equity that store brands command in Europe over the United States.
Rights: Reprinted with permission from JMR, Journal of Marketing Research, published by the American Marketing Association, Tulin Erdem, Ying Zhao, Ana Valenzuela, Feb. 2004, v. 41, no. 1, p. 86-100.
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