Is producing a private label counterproductive for a branded manufacturer?
研究品牌食品制造商利用过剩产能生产零售商自有品牌(PL)的策略,分析产能约束、议价能力和技术差异对零售商选择生产方的影响。
Branded food manufacturers vindicate the use of excess production capacities to justify their production of retailers’ brands. We study the distributor's and food manufacturer's private label (PL) strategy for production within a framework featuring endogenous store brand quality, bargaining power, possible differences in production technology and potential capacity constraints for the branded manufacturer. Depending on the structure of capacity constraint (applying to both products or to the PL only), we find that the retailer may prefer to choose an independent firm for the production of the store brand whereas the branded manufacturer is chosen in the case of excess capacity.