National brands and store brands: Competition through public quality labels

Abstract

In this article the authors study one aspect of the proliferation of quality labels in the agro-food sector: the coexistence of two signs on one same product and its consequences on the value of each sign. The context is that of the competition between national brands and private labels on a certain number of goods carrying a public quality label. The authors show that the value of a sign decreases when it is combined with another one on the same product. This result is verified for six products involving four quality labels. This allows for an interpretation of retailers' strategy concerning their private labels. [EconLit Classification: D120]. © 2006 Wiley Periodicals, Inc. Agribusiness 22: 21–30, 2006.