A theory of private branding and its implication for the relative competitiveness of foreign versus domestic manufacturers

"This dissertation develops and tests a new theory of private branding, a business practice under which manufacturers' products are sold to consumers under retailers' brands. The theory first argues that consumers' satisfaction with a product depends on both the performance of the manufacturer and that of the retailer. However, satisfied (or dissatisfied) consumers often cannot tell whether to attribute their satisfaction (or dissatisfaction) to the manufacturer or to the retailer, and therefore may reward (or punish) the manufacturer for the retailer's contribution to their satisfaction (or dissatisfaction), or vice versa. I call this condition ""performance inseparability."" Performance inseparability will trigger manufacturer-retailer conflicts and lead to an increase in intrachannel coordination costs. Although the manufacturer can impose contractual restraints on the retailer or even integrate forward into retailing to solve performance inseparability, I argue that shifting the branding of the product from the manufacturer to the retailer is a third solution. Private branding can reduce or even eliminate manufacturer-retailer conflicts caused by performance inseparability, save on intrachannel coordination costs, and therefore improve the distribution efficiency of a product."

Name thesis:degree_name

Ph.D.

Level thesis:degree_level

Dissertation

Discipline thesis:degree_discipline

Business Administration

Grantor

University of Illinois at Urbana-Champaign

Year dc:date

2011

Author dc:creator

• Chen, Shih-Fen

Contributors dc:contributor

• Hennart, Jean-Francois

• Business Administration, Marketing
• Business Administration, Management
• Economics, General
• Economics, Commerce-Business

Statement dc:rights

• Copyright 1996 Chen, Shih-Fen

Language dc:language

eng

Identifier

9780591197686
AAI9712227
(UMI)AAI9712227

OAI identifier oai:identifier

oai:www.ideals.illinois.edu:2142/19183