Local brand entry and incumbent variety response: evidence from the ice cream market

IF 1.3 Q3 AGRICULTURAL ECONOMICS & POLICY
Xiao Dong, H. Klaiber, Dong and Klaiber
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引用次数: 1

Abstract

We investigate incumbent brands’ response to entry and increased competition in a large retail setting. We extend the nonprice competition and manufacturer stocking literatures by examining if incumbent brands increase quality, specifically increasing the number of varieties (product-line length), in response to entry of a new local brand in the ice cream market. We use the entry of a new, local, super-premium ice cream brand in a large supermarket chain as a quasi-natural experiment and empirically examine if incumbent ice cream brands increased the product-line length in stores carrying the new brand. Using Poisson difference-in-differences estimators, we find that incumbent brands increased the number of varieties offered by 0.9 (3 percent) after the new brand's entry, with most of the responses coming from super-premium ice cream, which increased the number of varieties offered by 2.9 (12 percent) product choices. These findings contribute new insights into quality changes, manufacturer stocking decisions, and nonprice competition associated with entry of a local brand into the food retail sector.
本土品牌进入和现有品种反应:来自冰淇淋市场的证据
我们调查了现有品牌对大型零售环境中进入和竞争加剧的反应。我们扩展了非价格竞争和制造商库存文献,通过检查现有品牌是否提高质量,特别是增加品种数量(产品线长度),以应对新的本土品牌进入冰淇淋市场。我们以一个新的、本地的、超级优质的冰淇淋品牌进入一家大型连锁超市作为准自然实验,并实证检验现有的冰淇淋品牌是否会增加新品牌门店的产品线长度。使用泊松差中差估计,我们发现在新品牌进入后,现有品牌提供的品种数量增加了0.9%(3%),其中大多数反应来自超高档冰淇淋,这使提供的品种数量增加了2.9%(12%)。这些发现为质量变化、制造商库存决策以及与本地品牌进入食品零售部门相关的非价格竞争提供了新的见解。
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来源期刊
Agricultural and Resource Economics Review
Agricultural and Resource Economics Review AGRICULTURAL ECONOMICS & POLICY-
CiteScore
2.20
自引率
0.00%
发文量
23
审稿时长
19 weeks
期刊介绍: The purpose of the Review is to foster and disseminate professional thought and literature relating to the economics of agriculture, natural resources, and community development. It is published twice a year in April and October. In addition to normal refereed articles, it also publishes invited papers presented at the annual meetings of the NAREA as well as abstracts of selected papers presented at those meetings. The Review was formerly known as the Northeastern Journal of Agricultural and Resource Economics
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