Article thumbnail

Sustainable Decision Making for Store Brand Product

By Ji-Hung Choi, Taewan Kim and Sang-Uk Jung

Abstract

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

Topics: product line design, store brand, private label, product positioning, game theory, Environmental effects of industries and plants, TD194-195, Renewable energy sources, TJ807-830, Environmental sciences, GE1-350
Publisher: MDPI AG
Year: 2018
DOI identifier: 10.3390/su10113944
OAI identifier: oai:doaj.org/article:7b1e8c0f79b04d6f9d2de1536bd89dbb
Journal:
Download PDF:
Sorry, we are unable to provide the full text but you may find it at the following location(s):
  • https://www.mdpi.com/2071-1050... (external link)
  • https://doaj.org/article/7b1e8... (external link)
  • https://doaj.org/toc/2071-1050 (external link)
  • Suggested articles


    To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.