Private label positioning: Quality versus feature differentiation from the national brand

S. Chan Choi*, Anne T Coughlan

*Corresponding author for this work

Research output: Contribution to journalArticle

149 Scopus citations

Abstract

This paper investigates the retailer's problem of positioning her private label against two national brands in terms of both product quality and product features. Using a demand function derived from consumer utility, we show that the private label's best positioning strategy depends on the nature of the national brands' competition and its own quality. When the national brands are differentiated, a high quality private label should position closer to a stronger national brand, and a low quality private label should position closer to a weaker national brand. When the national brands are undifferentiated, the private label should differentiate from both national brands.

Original languageEnglish (US)
Pages (from-to)79-93
Number of pages15
JournalJournal of Retailing
Volume82
Issue number2
DOIs
StatePublished - May 2 2006

Keywords

  • National brand-private label competition
  • Private label
  • Private label positioning
  • Product features
  • Product quality
  • Vertical and horizontal differentiation

ASJC Scopus subject areas

  • Marketing

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