Summary: We compare two price formats – constant prices over weeks (also called Everyday Low Price or EDLP) and varying prices (also called Hi-Lo Price). We find that private labels would be more successful for stores that have constant prices than those that have varying prices. This effect is detected only for high-involvement product categories (like face creams) but not for low-involvement product categories (like paper napkins). The effect is more pronounced for Indian buyers as compared to their American counterparts.
Conference: American Marketing Association Conference, San Francisco, CA, August 2014.
