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Article Dans Une Revue Economics Bulletin Année : 2013

Mass Retailers' Advertising Strategies against Commodity Stores

Résumé

A retailer has different opportunities to advertise in the media: emphasizing the store image or promoting specifically its private label (PL). In the first option, advertising benefits all products sold, whereas in the alternative, only store brands are concerned by image improvement. We analyze the retailer's advertising campaign strategies when its competitor's format is a small commodity store. PL quality is endogenous and chosen according to the competitor's product range. We show the retailer prefers to advertise the store rather than its PL. However, this strategy may push commodity stores out of the market and reduce social welfare.
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Dates et versions

hal-02643530 , version 1 (28-05-2020)

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  • HAL Id : hal-02643530 , version 1
  • PRODINRA : 225799

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Fabian Berges, Sylvette Monier Dilhan. Mass Retailers' Advertising Strategies against Commodity Stores. Economics Bulletin, 2013, 33 (4), pp.2968-2981. ⟨hal-02643530⟩
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