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Factors influencing the price premiums that consumers pay for national brands over store brands

Raj Sethuraman (Assistant Professor of Marketing, Cox School of Business, Southern Methodist University, Dallas, Texas, USA)
Catherine Cole (Associate Professor of Marketing, College of Business Administration, University of Iowa, Iowa City, Iowa, USA)

Journal of Product & Brand Management

ISSN: 1061-0421

Article publication date: 1 August 1999

10600

Abstract

Identifies some managerially relevant factors that influence the size of the price premium that consumers will pay for national brands over store brands in grocery products. We define price premium as the maximum price consumers will pay for a national brand over a store brand, expressed as the proportionate price differential between a national brand and a store brand. Overall, perceived quality differential accounts for about 12 percent of the variation in price premiums across consumers and product categories and is the most important variable influencing price premiums.

Keywords

Citation

Sethuraman, R. and Cole, C. (1999), "Factors influencing the price premiums that consumers pay for national brands over store brands", Journal of Product & Brand Management, Vol. 8 No. 4, pp. 340-351. https://doi.org/10.1108/10610429910284319

Publisher

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MCB UP Ltd

Copyright © 1999, MCB UP Limited

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