Destination discount

Deleersnyder and Koll study the consequences of listing national brands in discounters.

Including manufacturer brands into a discount assortment will benefit both the manufacturers and the discounters: manufacturers and discounters attract more new customers with brands for which market penetration is still modest discounters gain more from adding branded offerings in underperforming categories, and benefit from brands that enjoy higher customer loyalty national‐brand prices should be set carefully – it is advised to maintain their price premium even at a discounter.

 

Barbara Deleersnyder, Oliver Koll (2012). Destination discount: a sensible road for national brands?. European Journal of Marketing, Vol. 46, Issue 9, pp. 1150-117.
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