Couponing Strategies in Competition Between a National Brand and a Private Label Product

Christoph Bauner, Edward C. Jaenicke, Emily Wang, Ping Chao Wu

Research output: Contribution to journalArticle

Abstract

This paper explores the couponing strategies when a national brand competes with a store brand by discussing three different kinds of coupons: manufacturers’ coupons, retailers’ national brand coupons, and retailers’ private label coupons. We show that the positioning of the private label product in terms of quality and feature differentiation from the national brand play an important role in determining the face value of the manufacturer's coupon and retailer's national brand coupon. In particular, a larger degree of feature differentiation drives the manufacturer to increase its coupon value, and the retailer responds by decreasing the value of its own coupon for the brand name product. In contrast, with an increase in private label quality, the couponing strategies taken by the manufacturer and the retailer depend on which segment of consumers is in the market for the private label product. Additionally, the retailer's private label coupon value is only impacted by the difference in consumers’ willingness to pay but not by private label positioning. Empirical results on the effect of feature differentiation on national brand and private label coupon values are consistent with our theoretical predictions.

Original languageEnglish (US)
Pages (from-to)57-66
Number of pages10
JournalJournal of Retailing
Volume95
Issue number1
DOIs
StatePublished - Mar 1 2019

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Private labels
Coupons
National brands
Retailers
Positioning
Prediction
Brand names
Willingness-to-pay
Empirical results
Store brands

All Science Journal Classification (ASJC) codes

  • Marketing

Cite this

Bauner, Christoph ; Jaenicke, Edward C. ; Wang, Emily ; Wu, Ping Chao. / Couponing Strategies in Competition Between a National Brand and a Private Label Product. In: Journal of Retailing. 2019 ; Vol. 95, No. 1. pp. 57-66.
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Couponing Strategies in Competition Between a National Brand and a Private Label Product. / Bauner, Christoph; Jaenicke, Edward C.; Wang, Emily; Wu, Ping Chao.

In: Journal of Retailing, Vol. 95, No. 1, 01.03.2019, p. 57-66.

Research output: Contribution to journalArticle

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