Keyword

Grocery retailing; grocery prices; supermarket prices; brand pricing

Abstract

This market review paper compares the prices of selected national and own label brands in four leading UK supermarkets. The objective is to find out price differentials between manufacturers’ and retailers’ brands in the leading supermarkets. Prices of nine grocery products were taken from four leading supermarkets and a comparison was made between the prices charged for national brands and those charged for equivalent own label brands. An evaluation of prices within the selected stores reveals that although own label brands were significantly cheaper than those of equivalent national brands, a large segment of customers still prefer national brands to own label brands. The review also suggests that more consumers were willing to pay premium prices for national food brands than for own label brands irrespective of price differentials. It is recommended that retailers use packaging information to dispel uncertainty and innovate in areas where they have a strong presence, as this indicates consumer acceptance


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