J. Tomás Gómez Arias and Laurentino Bello Acebrón
Most conventional research methodologies both in consumer and business‐to‐business marketing are modernist in nature, but their applicability in an increasingly postmodern…
Abstract
Most conventional research methodologies both in consumer and business‐to‐business marketing are modernist in nature, but their applicability in an increasingly postmodern business setting is decaying. Postmodern conditions are particularly prevalent in the business‐to‐business arena but, although new postmodern research methods are slowly growing in popularity in consumer markets, their use by business‐to‐business market researchers is still almost nonexistent. The article contributes to filling the existing vacuum in the business‐to‐business marketing literature and provides a framework for the use of postmodern research methods in industrial markets. A short case is used as illustration of this use.
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J. Tomas Gomez‐Arias and Laurentino Bello‐Acebron
Private labels are gaining increasing importance in many industries. While there are obvious benefits for retailers to embrace private labels, the standard explanations for…
Abstract
Purpose
Private labels are gaining increasing importance in many industries. While there are obvious benefits for retailers to embrace private labels, the standard explanations for manufacturers' involvement (idle capacity, buffer against follower brands, retailer's conditions) do not explain it completely. This paper seeks to provide an additional explanation.
Design/methodology/approach
An economic model of vertical differentiation is proposed.
Findings
The model shows that, once the retailer has decided to introduce the private label, and depending on the quality positioning chosen by the retailer, both manufacturers find situations where they are better off by not supplying the store brand and allowing the other manufacturer to produce the private label, but also situations where they prefer to produce the private label. Also, it is shown that retailers will choose the high‐quality manufacturer for its premium store brand, and the low‐quality manufacturer otherwise, and this decision is not based on the set of skills possessed by each manufacturing company.
Originality/value
The model contributes to explaining why private label supply is becoming so pervasive among all kinds of manufacturers under a variety of circumstances.