Impact of In-Store Promotion and Spillover Effect on Private Label Introduction

2019 ◽  
Vol 11 (2) ◽  
pp. 96-112 ◽  
Author(s):  
Yingjue Zhou ◽  
Tieming Liu ◽  
Gangshu Cai
Keyword(s):  
Supply Chain ◽  
Spillover Effect ◽  
The Other ◽  
Private Label ◽  
National Brand ◽  
Label Product ◽  
Horizontal Competition ◽  
Positive Spillover ◽  
The Impact ◽  
Brand Product

In this paper, the authors investigate the impact of in-store promotion and its spillover effect on private label introductions. Studying different retail supply chain scenarios in which the retailer carrying a national brand may introduce its own private label product and promote either the national brand or the private label inside the store, they find the in-store promotion on one product has a positive spillover effect on the other product. Without in-store promotion and spillover effect, the conventional wisdom indicates that, in a retail supply chain, the national brand manufacturer will be negatively affected by the introduction of a private label product. With in-store promotion and spillover effect, however, the national brand manufacturer can actually benefit from the private label introduction. When the spillover from national brand to private label is high, the retailer prefers to promote the national brand product. When the spillover from private label to national brand is high, promoting the private label product can also benefit the national brand manufacturer. With a symmetric spillover rate, the national brand manufacturer can still benefit from the private label introduction, as long as the retailer promotes the national brand product, the horizontal competition is not intense, or the private label product quality is sufficiently low.

scholarly journals Supply Chain Contracts in Fashion Department Stores: Coordination and Risk Analysis

2014 ◽  
Vol 2014 ◽  
pp. 1-10 ◽  
Author(s):  
Bin Shen ◽  
Pui-Sze Chow ◽  
Tsan-Ming Choi
Keyword(s):  
Supply Chain ◽  
Brand Management ◽  
Absolute Risk ◽  
Profit Sharing ◽  
Private Label ◽  
Fashion Industry ◽  
Department Stores ◽  
National Brand ◽  
Supply Chain System ◽  
The Impact

In the fashion industry, department stores normally trade with suppliers of national brands by markdown contract whilst developing private labels with cooperated designers by profit sharing contract. Motivated by this real industrial practice, we study a single-supplier single-retailer two-echelon fashion supply chain selling a short-life fashion product of either a national brand or a private label. The supplier refers to the national/designer brand owner and the retailer refers to the department store. We investigate the supply chain coordination issue and examine the supply chain agents’ performances under the mentioned two contracts. We find the analytical evidence that there is a similar relative risk performance but different absolute risk performances between the national brand and the private label. This finding provides an important implication in strategic interaction for the risk-averse department stores in product assortment and brand management. Furthermore, we explore the impact of sales effort on the supply chain system and find that the supply chain is able to achieve coordination if and only if the supplier (i.e., the national brand or the private label) is willing to share the cost of the sales effort.

scholarly journals COVID 19 Nation Lockdown – An Opportunistic Push for Private Label Brands Under Essentials Category

2020 ◽  
pp. 131-134
Keyword(s):  
Supply Chain ◽  
Business Models ◽  
International Markets ◽  
The Other ◽  
Private Label ◽  
Buying Behavior ◽  
Online Retailing ◽  
Market Responses ◽  
Private Label Brands ◽  
The Impact

Due to current COVID-19 pandemic situation across the globe, various sectors have been experiencing tremendous changes in their market responses in both National and International markets. The result of restrictions laid down on Online retailing on one side and controlled operations of supply chain on the other side, have led to changes in business models across sectors. This gave rise to an opportunity for retailers to push their private label brands and fill the gaps in supply chain. This paper emphasizes on the impact of lockdown on consumer buying behavior with respect to essentials category of products.

The Impact of Private Label Brand Personality Perception on Consumers' Buying Intentions

2020 ◽  
pp. 254-276
Author(s):  
Dilaysu Cinar
Keyword(s):  
Significant Relationship ◽  
Brand Personality ◽  
The Other ◽  
Private Label ◽  
Personality Dimension ◽  
Label Product ◽  
Significant Difference ◽  
Personality Perception ◽  
Convenience Sampling ◽  
The Impact

The aim of this research is to demonstrate the impact of private label brand personality perception on consumers' buying intentions. For that reason, it has been made in order to reveal which type of brand personality dimension is more effective on purchasing of private label product. For this purpose, the research has been carried out between October 2018 and January 2019 in Istanbul and 516 respondents have been interviewed by using convenience sampling method. In this context, it is concluded that there is no statistically significant difference was found between perceived brand sincerity, perceived brand excitement and buying intention of private label product. On the other hand, it has been found that there is a statistically significant relationship with perceived brand competence, perceived brand sophistication, and perceived brand ruggedness and buying intention of private label product.

Supplier development under cooperative and non-cooperative investment structures

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abhishek Srivastava ◽  
Parimal Kumar ◽  
Arqum Mateen
Keyword(s):  
Investment Decision ◽  
Spillover Effect ◽  
Investment Decisions ◽  
The Other ◽  
Supplier Development ◽  
Content Type ◽  
Cooperative Development ◽  
Investment Structure ◽  
Cooperative Investment ◽  
The Impact

PurposeThis study analyzes supplier development investment decisions under a triadic setting (two buyers and a common supplier). In a triadic setting, the supplier development investment decision of one buyer can have a spillover effect of the benefits on other buyer. Therefore, it is utmost important for the investing buyer to understand the impact of benefit spillover on other competing buyers'. Therefore, one of the purposes of this study to analyze the supplier development investment decision of buyers under two scenarios. First, under cooperative development structure where both buyers jointly invest in supplier and share equal benefits. Second, non-cooperative investment structure where both buyers individually invest in supplier development and share unequal benefits.Design/methodology/approachIn order to assess the impact of supplier development investment decisions on the profitability of buyers and the common supplier, the authors used game-theoretic approach. The authors design a Stackelberg leader-follower game where the supplier acts as Stackelberg leader and buyers follow the supplier's pricing decision to maximize their profit level. Additionally, both buyers decide either to cooperate or non-cooperate while investing in supplier development.FindingsThe results show that the cooperative investment is always an optimal strategy for buyers and supplier. Interestingly, the efficient buyer's share of investment level is lower under non-cooperative investment structure and he is better-off due to its capability of taking advantage from the other buyer's investment. However, the inefficient buyer, on the other hand, is worse-off under non-cooperative investment. Furthermore, comparative analysis between the two shows that initially, the buyer who extracts more profit because of the other buyers' development investment tends to prefer the non-cooperative development investment set up. However, after a certain point, the same buyer is better-off under cooperative development investment through cooperation, and sharing equal benefit of the supplier's development, as the supplier in turn, starts charging a higher wholesale price under non-cooperative investment case.Originality/valueTo the best of authors’ knowledge, extant literature on supplier development has mostly focused on. One supplier-one buyer; thus, the learning spillover effect has almost been unexplored. In real-life, different buyers often purchase from the shared supplier. Therefore, it is important to analyze the spillover of supplier development benefits due to investment of one buyer on other buyer and deriving the condition under which buyers would be incentivized to invest jointly or individually.

scholarly journals Private Label and Macroeconomic Indicators: Europe and USA

2020 ◽  
Vol 10 (4) ◽  
pp. 91
Author(s):  
Eloy Gil-Cordero ◽  
Francisco Javier Rondán-Cataluña ◽  
Daniel Sigüenza-Morales
Keyword(s):  
Market Share ◽  
European Countries ◽  
Private Label ◽  
Private Labels ◽  
National Brand ◽  
Business Decisions ◽  
The Us ◽  
Macroeconomic Indicators ◽  
The Usa ◽  
The Impact

In this study, we have analyzed the impact and evolution of some of the most important macroeconomic indices on the market share and value of private brands. The originality and objective of this work is the linkage of macroeconomic variables in European countries and the USA with the evolution of private labels in these countries. A sample of 19 European countries and all states within the USA has been collected over a 10-year period, including data on private labels and macroeconomic indices. The analysis of the panel data has been applied using the SPSS software through the Ljung–Box test. The most significant data from the sample study is that for GDP; we advised national brand managers to make a special communication effort in nations that offer a lower GDP within Europe for their volume and in value for the US. On the other hand, it was found that when the unemployment rate increases, the value of private label market share decreases for the US, but increases for Europe, in addition to other findings that will help organizations make different business decisions.

scholarly journals A Fuzzy Best Worst approach to the determination of the importance level of digital supply chain on sustainability

2021 ◽  
Vol 9 (4) ◽  
pp. 1366-1379
Author(s):  
Kevser Arman ◽  
Arzu Organ
Keyword(s):  
Supply Chain ◽  
Direct Relationship ◽  
Digital Technologies ◽  
The Other ◽  
Social Dimension ◽  
Other Hand ◽  
The Impact ◽  
Day By Day ◽  
Best Worst Method

In today's world where the importance of digitalization is increasing day by day, companies to increase their competitiveness have focused on digital supply chain instead of traditional supply chain. In a world where resources are constantly decreasing, the concept of sustainability has become very crucial in every part of life. Digital technologies, on the other hand, have a direct relationship with sustainability. Sustainability has three main dimensions: economic, environmental, and social. Therefore, the aim of this study is to evaluate digital supply chain on 3 basic dimensions of sustainability. For this purpose, Fuzzy Best Worst Method (F-BWM) was used to define the importance level of criteria. Findings reveal that the concept of sustainability in textile firms in Turkey is generally perceived within an economic and environmental area, rather than within a social dimension. This study is very important in putting forward digital technologies which utilizing in supply chain and the impact of the digital supply chain on sustainability.

MOBILE WALLETS AND CONSUMER SPENDING IN SINGAPORE: AGARWAL et al. REVISITED

2021 ◽  
pp. 1-17
Author(s):  
LEO VAN HOVE
Keyword(s):  
Credit Card ◽  
Alternative Explanation ◽  
Spillover Effect ◽  
Qr Code ◽  
Quick Response ◽  
Qr Codes ◽  
Mobile Payments ◽  
Positive Spillover ◽  
Entrepreneurial Growth ◽  
The Impact

Agarwal et al. ( 2019 ). Mobile wallet and entrepreneurial growth. AEA Papers and Proceedings, 109, 48–53 analyze the impact of the introduction of quick response (QR) codes for mobile payments in Singapore. They find that this not only resulted in a significant increase in the use of mobile wallets, but that there was also a positive spillover effect on debit and credit card payments — in particular at small and new businesses. This note argues that the increase in card sales cannot have been driven by the QR code technology. I also proffer an alternative explanation, namely, that Agarwal et al. simply capture the concurrent increase in popularity of contactless cards.

scholarly journals The impact of private label foods on supply chain governance

2014 ◽  
Vol 116 (7) ◽  
pp. 1106-1127 ◽  
Author(s):  
Ilias P. Vlachos
Keyword(s):  
Supply Chain ◽  
Consumer Satisfaction ◽  
Single Case ◽  
Case Study Research ◽  
Private Label ◽  
Sources Of Information ◽  
Content Type ◽  
Supply Chain Governance ◽  
The Impact

Purpose – The purpose of this paper is to investigate the impact of the introduction of private label (PL) foods upon the governance of the food supply chains. Design/methodology/approach – The authors conducted a multi-case study research examining the launch and development of PL cheeses in four large national-wide retail chains. The paper focused on the category of Products of Designated Origin (PDO) cheeses, including the popular feta cheese. Data collection involved semi-structured interviews and secondary sources of information. Data analysis involved single-case and within-case analyses. Findings – There is a strong motive to launch and develop PL cheeses due to increasing consumer demand. Retailers choose suppliers based on criteria such as: compliance to quality assurance standards, modernisation of processing facilities, implementation of legislation, credibility, experience, and reputation. Retailers use contracts and prefer small suppliers than medium-sized companies. Supply chain governance turns from market to hierarchy status, which performs better in terms of supply chain cost, food quality, and consumer satisfaction. The structure of food industry is also affected by pressure put on medium-sized food companies. Research limitations/implications – The paper is based on a multiple case study design that does not provide static generalisations, yet it offers a stepping stone to building new theory about supply chain governance, how it evolves and its effects on supply chain performance. Practical implications – The introduction of PL cheeses favours small and dynamic cheese processing units willing to adopt retailer standards and prices over larger units, which poses a real threat to the survival of regional-wide food companies. Originality/value – Few studies have examined how supply chain governance evolves and what triggers a change in governance structures.

scholarly journals Impact of Private Labels and Information Campaigns on Organic and Fair Trade Food Demand

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Douadia Bougherara ◽  
Carole Ropars-Collet ◽  
Jude Saint-Gilles
Keyword(s):  
Fair Trade ◽  
Private Label ◽  
Demand System ◽  
Demand Systems ◽  
Scanner Data ◽  
National Brand ◽  
Information Campaigns ◽  
Fair Trade Coffee ◽  
Systems Models ◽  
The Impact

AbstractWe use two Almost Ideal Demand Systems models on scanner data to analyze the demand for two food products (milk and coffee). Each demand system is composed of four products varying in the presence of an ecolabel (with or without) and the brand (national brand vs. private label). First, we aim to compare the demand for PL and NB ecolabeled products. While PLs are brands owned and controlled by retailers and specific to each retailer, NBs are owned and controlled by manufacturers and can be offered by several retailers. Second, we aim to assess the impact of information campaigns designed to raise awareness and knowledge of ecolabels. We find that demand is more elastic for ecolabeled goods as in the literature but we find this result only for NB goods (milk and coffee) and not for PL goods. We also find substitutability between ecolabeled and conventional goods as in the literature but only within the NB goods (milk only) and within the PL goods (milk and coffee). We also find complementarity between NB conventional and PL ecolabeled goods (milk and coffee). Finally, we find that information campaigns increase the predicted expenditure shares of PL organic milk by 33% and of NB fair trade coffee by 50%. But these effects are non-lasting.

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