Store brand introduction under asymmetric demand information
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F272

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    Abstract:

    Prior literature has shown that for a symmetric information setting,introducing store brands can benefit the retailer and do harm to the manufacturer. This paper extends the problem of store brand introduction to the situation in which the retailer might be better informed than the manufacturer. It is found that the retailer’s ordering decisions are different compared with the symmetric information scenario. In particular,the retailer’s ordering quantity of national brand may increase with the introduction of store brand,depending on the production cost. An exploration of the two players’performance with respect to relative profit improvements shows that under certain conditions they can reach a“win-win”outcome.

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  • Online: October 25,2021
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