Supermarket Pricing Model Impact on Private Label Brands versus National Brands among Millennial Consumers

Abstract

Are national brands (NB) manufacturers at risk of losing sales to private label brands (PLB) in low quality variance categories, as the Millennial generation continues to outpace previous generational cohorts in absolute size and spending power? A quantitative examination of archival home scan panel data from over 100,000 U.S. households, investigated actual purchase data over a three-year period. Consumer metrics for Rice and Pasta category; trip conversion, buyer conversion, and loyalty served as dependent variables interacting with a multivariable grouping of independent variables; branding (NB vs. PLB), age cohort (Millennial vs. Generation X), and grocery pricing model format (Hi-Lo vs. EDLP vs. Hybrid). A MANOVA provided consistent findings for both rice and pasta categories to support significance level .002 (rice) and