Store Brands and the Role of Advertising

52 Pages Posted: 13 Oct 2015

See all articles by Rachel Griffith

Rachel Griffith

Institute for Fiscal Studies (IFS); University of Manchester; Centre for Economic Policy Research (CEPR)

Michal Krol

University of Manchester

Kate Smith

Institute for Fiscal Studies (IFS); University College London

Date Written: October 2015

Abstract

Store brands are products over which a retailer (rather than a manufacturer) takes certain strategic decisions; we study the incentives of a retailer to advertise its store brands. We use detailed data on the British grocery market to document the considerable variation in store brand penetration across product categories and retailers. We develop a model that relates the pricing and advertising decisions of retailers and manufacturers to primitive characteristics of the category, and in particular the way that advertising affects consumer demand. We present empirical evidence that is consistent with several predictions from the model.

Keywords: advertising, store brands

JEL Classification: D21, D22, M37

Suggested Citation

Griffith, Rachel and Krol, Michal and Smith, Kate, Store Brands and the Role of Advertising (October 2015). CEPR Discussion Paper No. DP10877. Available at SSRN: https://ssrn.com/abstract=2673629

Rachel Griffith (Contact Author)

Institute for Fiscal Studies (IFS) ( email )

7 Ridgmount Street
London WC1E 7AE
United Kingdom
+44 20 7291 4800 (Phone)
+44 20 7323 4780 (Fax)

University of Manchester ( email )

Arthur Lewis Building
Oxford Road
Manchester, M13 9PL
United Kingdom

HOME PAGE: http://www.ifs.org.uk/people/profile?id=37

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Michal Krol

University of Manchester

Kate Smith

Institute for Fiscal Studies (IFS) ( email )

7 Ridgmount Street
London, WC1E 7AE
United Kingdom

University College London ( email )

Gower Street
London, WC1E 6BT
United Kingdom

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