Couponing Strategies in Competition Between a National Brand and a Private Label Product

Bauner, Christoph; Jaenicke, Edward C.; Wang, Emily; Wu, Ping

doi:10.1016/j.jretai.2018.11.002

Cited by 43 publications

(13 citation statements)

References 14 publications

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“…The research gaps between our work and the existing studies are reflected in three aspects, and this is where the innovation of our paper lies. First of all, unlike previous research, we consider both consumer strategies and preferences (rather than just a single type of consumer behavior) when studying coupon distribution or supply chain operations issues (Bauner et al, 2019;Chaab et al, 2022;Zhang, Ma, et al, 2020). The combination of four types of consumer behaviors in the form of 2 Â 2 can help companies and platforms identify as many different types of consumers as possible when distributing coupons to achieve precise distribution and thus support decision-making.…”

Section: Coupon Promotionmentioning

confidence: 99%

“…The combination of four types of consumer behaviors in the form of 2 Â 2 can help companies and platforms identify as many different types of consumers as possible when distributing coupons to achieve precise distribution and thus support decision-making. Next, we investigated the scenario of multiple coupons (consumers receive a single coupon from the manufacturer or retailer, or a double coupon from the manufacturer and e-commerce platform that can be stacked for consumption) distributed by multiple participants (manufacturer, e-commerce platform, and retailer) under a dual-channel supply chain, which is more in line with the current complex marketing environment, whereas existing studies consider only a single participant or a single coupon (Bauner et al, 2019;Feng et al, 2021;Martín-Herrán & Sigué, 2015;Tong et al, 2022). In the end, we compared the two coupon promotion scenarios from a various perspectives, including the promotional efforts of the manufacturer and retailer, the size of profits of the manufacturer, and the e-commerce platform and retailer in two periods, which will directly reveal the main findings of this study.…”

Section: Coupon Promotionmentioning

confidence: 99%

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Who is better for single and double coupon promotion? Comparison from dual‐channel and two‐period

Tian

Yang

Wen³

et al. 2023

Manage Decis Econ

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This paper examines the e-commerce platform decides whether to distribute electronic coupons during the promotional period: Single coupon (SC) and double coupon (DC) are available. We analyze the difference in promotional strengths and profit levels between the two coupon scenarios. With the retailer in the SC scenario promoting more when the platform commission rate is increased. In the DC scenario, the larger the gains of the manufacturer and the platform during the promotional period, and the profit trends of the dual-channel in the original price period remain the same. The platform can only enjoy significant benefits when the platform fee is higher.

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Section: Coupon Promotionmentioning

confidence: 99%

Section: Coupon Promotionmentioning

confidence: 99%

Who is better for single and double coupon promotion? Comparison from dual‐channel and two‐period

Tian

Yang

Wen³

et al. 2023

Manage Decis Econ

View full text Add to dashboard Cite

show abstract

“…For example, Su et al [6] claimed that coupon trading cannot simultaneously benefit retailers and manufacturers. Bauner et al [47] noted that the positioning of a privatelabel product in terms of quality and feature differentiation from a national brand played an important role in the profits of manufacturers and retailers. The recent papers most related to our research are Jiang et al [48], Li et al [11], Li et al [12], and Li et al [49].…”

Section: Coupon Promotionsmentioning

confidence: 99%

“…This assumption is widely adopted in the marketing and economics literature on coupon promotions [9,60]. In contrast, the redemption cost of L-type consumers is normalized to zero; hence, they always use coupons when available [47]. Moreover, each customer incurs hassle costs h o , h s , and h b when shopping in the online, store and BOPS channels, respectively.…”

Section: Modelmentioning

confidence: 99%

Digital Coupon Promotion and Inventory Strategies of Omnichannel Brands

Zhang

2022

Axioms

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This paper investigates when an omnichannel brand should offer digital coupons in the online and buy-online-and-pick-up-in-store (BOPS) channels and, if so, the joint decision of coupon face value and store inventory. The impact of a digital coupon promotion on store inventory is also explored. Two scenarios are considered, one where consumers’ costs in the online and store channels are homogeneous and another in which they are heterogeneous, and two newsvendor models, with and without a coupon promotion, are constructed under each scenario. The results show that the issuance of coupons improves the omnichannel brand’s profit when the price is high and the coefficient of the difference in valuation between two types of consumers is low in the homogeneous scenario. In the heterogeneous scenario, the brand prefers the coupon promotion when the price is high or moderate and the coefficient of the difference in valuation between two types of consumers is high. In addition, offering a coupon promotion yields a higher store inventory in most cases. However, store inventory is decreased in some special cases in the homogeneous scenario. Moreover, an increased hassle cost in the BOPS channel significantly lowers the offline demand and profit increase from a digital coupon promotion. Furthermore, a coupon promotion is more likely to benefit both the brand and consumers as the cross-selling revenue increases. These results provide guidance for omnichannel brands to implement coupon promotions and adjust store inventory with stochastic demand.

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“…For the last several decades, manufacturers have been the main producers of branded consumer packaged products at the retail level. However, this leadership position has eroded over time as major grocery retail chains have introduced their own branded products -private label (PL) brands (Gielens et al, 2021;Bauner et al, 2019;Alan et al, 2019;Olbrich et al, 2017). Private label products were viewed as cheap products, but now retailers have started offering better quality products, now the customers consider PL as good as NB substitute products (Gielens et al, 2021).…”

Section: Introductionmentioning

confidence: 99%

Strategic Competition Between Private Labels and National Brands in a Vertically Linked Market

Ahmad¹

2021

Forman J. Econ. Stud.

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Over the past decades, the rapid emergence of private labels (PL) has created stiff competition for many established manufacturers of national brands (NB). Retailers are using PL products as a competitive weapon against NB. The present study develops and tests different theoretical models of competition under different retailer-manufacturer production arrangements for private labels using the Non-Nested Model Comparison (NNMC) approach and their impact on the pricing strategies of PLs and NBs in the Canadian retail market. The theoretical model shows that a retailer earns the highest profit when it behaves as a leader and makes the least profit when it behaves as a follower; a similar relationship holds for the NB manufacturer under different PL production arrangements. The total industry profit is the highest when the retailer and NB manufacturer behaves in a Bertrand Nash manner. Empirical results of the study show no consistent pattern of competitive interaction under various production arrangements of PL products.

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Couponing Strategies in Competition Between a National Brand and a Private Label Product

Cited by 43 publications

References 14 publications

Who is better for single and double coupon promotion? Comparison from dual‐channel and two‐period

Who is better for single and double coupon promotion? Comparison from dual‐channel and two‐period

Digital Coupon Promotion and Inventory Strategies of Omnichannel Brands

Strategic Competition Between Private Labels and National Brands in a Vertically Linked Market

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