Private Label Consumers and National Brand New Products: An Empirical Investigation

Abstract

Previous research finds that national brands take market shares from private labels when they introduce new products. Which consumers they attract with the new product introduction however remains unknown. Using data from the carbonated beverage category and a cure model approach, this research empirically investigates which consumer segments are regained. Our results suggest that new national brands mostly regain brand users, though they are more likely to attract light private label users. Our results have implications for national brand managers designing launch and targeting strategies and for private label managers designing defensive strategies.