The determinants of store brand market share – a temporal and cross-sectional analysis

Natalia Rubio and María Jesús Yagüe
Universidad Autónoma de Madrid

INTRODUCTION

The specialised literature has shown particular interest in store brand market share, examining how it is influenced by certain characteristics of product categories (Sethuraman & Cole 1997), and by strategic and structural variables (Hoch & Banerji 1993; Raju et al. 1995a; Dhar & Hoch 1997; Putsis & Cotterill 1999; Cotterill et al. 2000, among others). In spite of the large quantity of research that proposes alternative models for explaining the market share of these brands, almost all the studies approach the problem by performing cross-sectional analyses. Authors such as Raju et al. (1995a) warn of the risks of the broad, generalised application of such studies, which have occasionally led to unexpected results, such as the negative influence of the price differential between manufacturer and store brands on the market share of the latter (Raju & Dhar 1991; Sethuraman 1992; Mills 1995). Raju et al. (1995a) suggest that these limitations may be overcome by framing the analysis in a longitudinal approach.