Private Label Positioning and Product Line

Abstract

This article examines (i) how retailers position private label products, (ii) why private labels are sold in some product categories but not in others, and why some national brand products may have difficulty in accessing retailers’ shelves, (iii) why some private label products are positioned as ”premium” brands, and (iv) how consumers’ surplus and totalwelfare are affected by private labels. We find that private label positioning leads to less differentiation in product category, which structurally changes a retailer’s product line in return. Consumer welfare and total welfare are lower.

Keywords

private label / national brand / product line

RIGHTS & PERMISSIONS

2017 Higher Education Press