@article{Huang:21993, recid = {21993}, author = {Huang, Min-Hsin and Hahn, David E. and Jones, Eugene}, title = {A SOCIOECONOMIC APPROACH TO ASSESSING PRICE COMPETITION BETWEEN PRIVATE LABELS AND NATIONAL BRANDS: THE CASE OF SHREDDED CHEESE}, address = {2003}, number = {376-2016-20461}, series = {Selected Paper}, pages = {26}, year = {2003}, abstract = {An LA/AIDS model is developed to estimate demand elasticities for packages of 8-oz shredded cheese for higher- and lower-income consumers. Data used in this study are scanner data for six supermarket stores in two distinct socioeconomic areas. Results show that: (1) lower-income shoppers are more price-sensitive than higher-income shoppers for both private labels and national brands; (2) compared with private labels, consumers are very sensitive to national brands price changes even in higher-income areas; (3) cross-price elasticities between private labels and national brands are all positive, i.e., private labels and national brands are substitutes in both lower- and higher-income stores; and (4) the number of promoted items does not have a statistically significant impact on sales; instead, the percentage of price discount affects sales for both private labels and national brands.}, url = {http://ageconsearch.umn.edu/record/21993}, doi = {https://doi.org/10.22004/ag.econ.21993}, }