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Price-Quality and Market Share of Consumer Goods in Spain: Retail Brands and Manufacturer Brands

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Abstract:

The development of retail brands has been favoured by the creation of large chains and by the high level of business concentration in the retail sector. It has been supported by an increasing number of consumers who are aware of value and consider that retail brand is the best alternative, with quality levels similar to those of leading manufacturer brands but with lower prices. In this survey, we analyse the price differentials between manufacturer brands and retail brands in several categories of widely consumed products. We study the relationship between the price differential and the mean category price with the market share of retail brands, for foodstuff, perfumes and cleaning materials categories. Finally, we determine the possible connection between the price of a consumer good brand and its real quality.

Keywords: Retail brands; manufacturer brands; perceived quality; price; real quality; retail trade

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/0959396042000178197

Publication date: April 1, 2004

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