Browsing by Author "Bezawada, R."

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Open Access
The strategic role of private labels on retail competition
(Boğaziçi Üniversitesi İktisadi ve İdari Bilimler Fakültesi, 2012) Akçura, Munir Tolga; Bezawada, R.; Kalra, A.; Business Administration; AKÇURA, Münir Tolga
We investigate the strategic role of private labels in limiting retail competition. Private labels are unique differentiators for retailers. By launching and credibly committing to a strong private label program, a strong retailer can limit the market potential for competing retailers. Consequently, weaker retailers may not be able to meet threshold profits and exit the market. We derive the private label shares needed to induce exit. A model implication is that the private label share required to induce exit increases with increasing national brand margins. We also conduct an empirical analysis and find evidence supporting the propositions. Combining Dominick s store level data with Zip Code Business Patterns data, we find that at the zip code level, the private label share affects the number of stores competing in the market.
Open Access
What is special about marketing organic products? How organic assortment, price, and promotions drive retailer performance
(American Marketing Association, 2013-01) Bezawada, R.; Pauwels, Koen Hendrik; Business Administration; PAUWELS, Koen Hendrik
Higher sales and margins are key goals for retailers promoting emerging products, such as organics, but little is known about their marketing effectiveness and their cross-effects on conventional product sales. Extant research reports conflicting results about price and promotional sensitivity for organic products and does not address the impact of organic assortment. This article calculates long-term own- and cross-elasticities of organic and conventional product sales in response to changes in assortment, price, and promotions. Using a rich data set of 56 categories, the authors test hypotheses on how different costs and benefits of organic products affect these elasticities. They find that enduring actions, such as assortment and regular price changes, have a higher elasticity for organics than for conventional products. In contrast with common wisdom, even “core” organic consumers are sensitive to these actions. Increasing organic assortment and promotion breadth yields higher profits for the total category, as do more frequent promotions on conventional products. Our category comparison yields specific advice as to where larger assortment, lower prices versus more and deeper promotions are most effective.