scholarly journals Analysis on the influence of retailer's introduction of store brand under manufacturer's product line strategy

2021 ◽  
Vol 0 (0) ◽  
pp. 0
Author(s):  
Yuanyuan Jiao ◽  
Yuhang Li ◽  
Jun Du
Keyword(s):  
Competitive Strategy ◽  
Production Cost ◽  
Optimal Choice ◽  
Product Line ◽  
Store Brand ◽  
Competition Strategy ◽  
National Brand ◽  
Product Lines ◽  
National Brands ◽  
End Products

<p style='text-indent:20px;'>As the introduction of store brand (SB) by retailers becomes more common, national brand manufacturers (NBM) in the market often respond with a product line strategy. Then how should retailers decide their product lines under the situation that NBM adopt product line strategy? Under the manufacturer's product line strategy, this paper compares and analyzes three competitive strategies for retailers to introduce high-end SB, low-end SB and SB product line. The results show that: First, no matter what kind of competition strategy the retailer adopts, (1) the introduction of SB occupies the market share of NB; (2) the retailer gains the highest unit income from the high-end products of NB manufacturers. Second, the relationship between production cost and encroachment effects directly affects the retailer's choice of optimal competitive strategy and the manufacturer's preference for its competitive strategy choice. Finally, from the perspective of profit maximization, the optimal choice for retailers is the product line competition strategy, but this strategy is not obvious compared with the high-end competition strategy. Therefore, when retailers introduce product lines, if they are effectively threatened by national brand manufacturers (for example, NBM refuses to provide national brands to retailers), retailers may choose the suboptimal strategy, that is, to introduce store brand high-end products. When the high-end products of store brands are better than the low-end products of national brands and the production cost of products is relatively high, this strategy just meets the expectations of national brand manufacturers for retailers to introduce strategies.</p>

Store-brand introduction and production arrangement in the presence of multiple retailers

2020 ◽  
Vol 54 (3) ◽  
pp. 827-843 ◽  
Author(s):  
Rong Cheng ◽  
Weimin Ma ◽  
Hua Ke
Keyword(s):  
Game Theory ◽  
Real World ◽  
Stackelberg Games ◽  
Store Brand ◽  
Store Brands ◽  
National Brand ◽  
Model Interaction ◽  
National Brands ◽  
The Real ◽  
Retailing Business

Store brands play an increasingly important role in retailing business, leading more and more retailers to introduce store brands. Abundant research focuses on competition between store brands and national brands and counterstrategies that national-brand manufacturers can take to counter store-brand introduction. A little research studies the store-brand production issue, however, all under single-retailer scenarios. To approach the real world, we employ game theory to model interaction between a national-brand manufacturer and multiple locally monopolist retailers, one of whom has capability and motivation to introduce a store brand. Five Stackelberg games are build and solved to investigate: how the presence of the non-store-brand retailers affects the store-brand retailer’s decision on and profitability in the store-brand introduction; how the store-brand retailer should arrange store-brand production; whether there is a win–win situation where both the store-brand retailer and the national-brand manufacturerare better off with the latter producing the store brand. Accordingly, our study offers a novel rationale for why so many, especially leading, national-brand manufacturers are involved in the store-brand production. Some useful managerial suggestions are proposed on the store-brand introduction and production arrangement.

scholarly journals Sustainable Decision Making for Store Brand Product

2018 ◽  
Vol 10 (11) ◽  
pp. 3944 ◽  
Author(s):  
Ji-Hung Choi ◽  
Taewan Kim ◽  
Sang-Uk Jung
Keyword(s):  
Production Cost ◽  
Production Costs ◽  
Channel Coordination ◽  
Store Brand ◽  
Store Brands ◽  
National Brand ◽  
Coordination Problem ◽  
Private Brands ◽  
Brand Product

We investigate a multi-brands sustainable channel coordination problem where a national brand manufacturer sells a product through two local retailers competing against their own store brand product, respectively. We shows how the retailers strategically optimize the price and quality of private brands given the customer tastes and the production costs of the store brands in order to make their store brands sustainable. We identify two underlying strategic forces; a competitive force, and a quality force. First, we find that retailers have an incentive to position their store brand far away from the national brand in order to maximize monopolistic power. This strategic force attenuate the incentives for customer to switch to other retailer’s store brands. One the other hand, we show that the retailers prefer increasing the store brand’s quality to get more profit margin when the production cost is relatively high as well.

scholarly journals National Brands, Private Labels, and Food Price Inflation

2014 ◽  
Vol 46 (4) ◽  
pp. 575-591
Author(s):  
Rickard James Volpe
Keyword(s):  
Low Income ◽  
Food Prices ◽  
Food Price ◽  
Private Label ◽  
Store Brand ◽  
Private Labels ◽  
National Brand ◽  
Price Inflation ◽  
National Brands ◽  
Fuel Prices

This article investigates the extent to which national brand and private label (store brand) prices behave differently as food price inflation changes. Empirical tests using a range of indices support the hypotheses that rising commodity and fuel prices lead to relatively larger surges in private label prices. When food prices are rising or high, the average price difference between national brands and private labels shrinks. The findings have implications for understanding the welfare effects of private labels. Moreover, they suggest that food price inflation is stronger for low-income households as food prices rise.

scholarly journals Store-Brand Production Arrangement Based on the Game Theory

2018 ◽  
Vol 2018 ◽  
pp. 1-10
Author(s):  
Weimin Ma ◽  
Rong Cheng ◽  
Hua Ke ◽  
Jianguang Zhang
Keyword(s):  
Game Theory ◽  
Production Efficiency ◽  
High Efficiency ◽  
Strategic Interaction ◽  
Store Brand ◽  
Store Brands ◽  
National Brand ◽  
National Brands ◽  
The Game Theory

The increasing popularity of store brands is resulting in greater cannibalization of national brands. Thus, national-brand manufacturers are trying their best to confront this trend. At the same time, however, many leading national-brand manufacturers have become involved in the store-brand production of their counterpart retailers. We construct a game-theory-based framework to model the strategic interaction between a leading national-brand manufacturer and a retailer. Besides the national brand, the retailer also has an option for its own store brand to compete with the national brand head to head. There are two choices for the store-brand production available to the retailer: a fringe manufacturer with low production efficiency or alternatively the national-brand manufacturer with high efficiency. It is shown that, under certain conditions, there is a win-win situation for both the store-brand retailer and the national-brand manufacturer with the latter supplying the store brand. More interestingly, it is found that the national-brand manufacturer supplying the store brand may lead to a higher likelihood of the store brand introduction. Our study offers an explanation for why more and more national-brand manufacturers supply store brands.

scholarly journals Testing the decoy effect in the presence of store brands

2015 ◽  
Vol 43 (2) ◽  
pp. 113-125 ◽  
Author(s):  
Ricardo Sellers-Rubio ◽  
Juan-Luis Nicolau-Gonzalbez
Keyword(s):  
Sales Promotion ◽  
Brand Names ◽  
Store Brand ◽  
Store Brands ◽  
National Brand ◽  
Content Type ◽  
National Brands ◽  
Decoy Effect ◽  
Relative Preference ◽  
Rule Out

Purpose – The purpose of this paper is to test decoy effect in the framework of sales promotion, by conducting several experiments to figure out how this decoy effect is influenced by the presence or absence of a store brand. Design/methodology/approach – Several experiments have been conducted to test the validity of the decoy effect and rule out some explanations for the changes in demand that take place. The experiments consider three brands (two national brands and one store brand). All the brand names and prices employed in the experiment are real. Findings – The results indicate that, as expected, the inclusion of a decoy in the choice set significantly increases the consumer’s relative preference for the promoted product; however, more importantly, the results also show that store brand consumers are more influenced by a decoy than national brand consumers. Originality/value – This paper presents the first evidence of the decoy effect in the presence of store brands.

scholarly journals Fragment-oriented programming: a framework to design and implement software product line domain components

DYNA ◽  
2018 ◽  
Vol 85 (207) ◽  
pp. 74-83 ◽  
Author(s):  
Daniel Correa ◽  
Raúl Mazo ◽  
Gloria Lucia Giraldo Goméz
Keyword(s):  
Software Product Line ◽  
Preliminary Evidence ◽  
Product Line ◽  
Software Systems ◽  
Software Components ◽  
Product Lines ◽  
Reusable Software ◽  
Software Products ◽  
Manual Intervention ◽  
Software Product

Software product lines facilitate the industrialization of software development. The main goal is to create a set of reusable software components for the rapid production of a software systems family. Many authors have proposed different approaches to design and implement the components of a product line. However, the construction and integration of these components continue to be a complex and time-consuming process. This paper introduces Fragment-oriented programming (FragOP), a framework to design and implement software product line domain components, and derive software products. FragOP is based on: (i) domain components, (ii) fragmentations points and (iii)fragments. FragOP was implemented in the VariaMos tool and using it we created a clothing stores software product line. We derivedfive different products, integrating automatically thousands of lines of code. On average, only three lines of code were manually modified;which provided preliminary evidence that using FragOP reduces manual intervention when integrating domain components.

scholarly journals National Versus Private-Label Brands: Dynamics, Conceptual Framework, And Empirical Perspective

2015 ◽  
Vol 13 (2) ◽  
pp. 123 ◽  
Author(s):  
Elias G. Rizkallah ◽  
Heather Miller
Keyword(s):  
Conceptual Framework ◽  
Consumer Products ◽  
Private Label ◽  
Store Brands ◽  
National Brand ◽  
National Brands ◽  
Product Categories ◽  
Private Label Brands ◽  
Empirical Perspective

Motivated by profits and their growing power in the marketplace, retailers have been expanding their private-label brands to include more categories of consumer products and differentiation on quality to reach different consumer segments. This global phenomenon is adversely impacting the performance of national brands, thus creating a conflict between two powerful parties manufacturers of national brands and their large retailers who are supposed to be their helping hands in the marketplace. In this paper, the authors develop a conceptual framework, which captures the complexity and multidimensionality of the situation the stakeholders involved, the interest and power of each, the relationships among them, various strategies they employ, and the outcomes of the conflict. Several hypotheses were examined and tested through the empirical part of this study; for example, would the powers of these parties determine who is the loser and who is the winner or will the verdict be in the hands of the consumers? The study surveyed 281 consumers to assess their attitudes toward and preferences of store brands versus national brands across product categories and the underlying motivations. The paper concludes with recommendations for retailers and national brand manufacturers to win the hearts of consumers rather than exhaust their resources in the conflict.

scholarly journals Feature Model Configuration Based on Two-Layer Modelling in Software Product Lines

2019 ◽  
Vol 9 (4) ◽  
pp. 2648
Author(s):  
Elham Darmanaki Farahani ◽  
Jafar Habibi
Keyword(s):  
Product Line ◽  
Feature Model ◽  
Functional Requirements ◽  
Product Lines ◽  
Software Products ◽  
Model Configuration ◽  
Software Product ◽  
Software And Hardware ◽  
Application Requirements

The aim of the Software Product Line (SPL) approach is to improve the software development process by producing software products that match the stakeholders’ requirements. One of the important topics in SPLs is the feature model (FM) configuration process. The purpose of configuration here is to select and remove specific features from the FM in order to produce the required software product. At the same time, detection of differences between application’s requirements and the available capabilities of the implementation platform is a major concern of application requirements engineering. It is possible that the implementation of the selected features of FM needs certain software and hardware infrastructures such as database, operating system and hardware that cannot be made available by stakeholders. We address the FM configuration problem by proposing a method, which employs a two-layer FM comprising the application and infrastructure layers. We also show this method in the context of a case study in the SPL of a sample E-Shop website. The results demonstrate that this method can support both functional and non-functional requirements and can solve the problems arising from lack of attention to implementation requirements in SPL FM selection phase.

Modeling and Documenting Aspect-Oriented Mobile Product Lines

2013 ◽  
pp. 52-67
Author(s):  
Camila Nunes ◽  
Uirá Kulesza ◽  
Roberta Coelho ◽  
Carlos Lucena ◽  
Flávia Delicato ◽  
...  
Keyword(s):  
Software Development ◽  
Research Work ◽  
Product Line ◽  
Use Cases ◽  
Product Lines ◽  
Software Product ◽  
Change Impact ◽  
Definition Of ◽  
Development Paradigm ◽  
Relevant Variation

Aspect-Oriented Software Development (AOSD) has evolved as a software development paradigm over the last decade. Recent research work has explored the use of Aspect-Oriented Programming (AOP) to modularize variations in product lines. This chapter presents a strategy for modeling and documenting aspect-oriented variations by integrating two existing approaches: (1) use cases are used to express the crosscutting nature of the variations of a mobile product line; and (2) crosscutting interfaces help the definition of the relevant variation join points that are raised by the mobile product line core and are extended by its respective variations. The synergy and benefits of the integration between these approaches are demonstrated by modeling and documenting MobileMedia, a software product line that provides support to manage different media (photo, music, and video) on mobile devices. Evolution scenarios of the MobileMedia are used to illustrate the benefits of the integrated usage of use cases and crosscutting interfaces in order to identify and analyze the change impact on the mobile product line.

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