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BRAND COMPETITION (INTER AND INTRA)

Statistics Directorate    
Definition:
Firms marketing differentiated products frequently develop and compete on the basis of brands or labels. Coca Cola vs. Pepsi-Cola, Levi vs. GWG jeans, Kellogg’s Corn Flakes vs. Nabisco’s Bran Flakes are a few examples of inter-brand competition. Each of these brands may be preferred by different buyers willing to pay a higher price or make more frequent purchases of one branded product over another.

Intra-brand competition is competition among retailers or distributors of the same brand. Intra-brand competition may be on price or non-price terms. As an example, a pair of Levi jeans may be sold at a lower price in a discount or specialty store as compared to a department store but without the amenities in services that a department store provides. The amenities in services constitute intra-brand non-price competition. Some manufacturers seek to maintain uniform retail prices for their products and prevent intra-brand price competition through business practices such as resale price maintenance (RPM), in order to stimulate intra-brand non-price competition if it will increase sales of their product.
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Source Publication:
Glossary of Industrial Organisation Economics and Competition Law, compiled by R. S. Khemani and D. M. Shapiro, commissioned by the Directorate for Financial, Fiscal and Enterprise Affairs, OECD, 1993.

Hyperlink:
http://www.oecd.org/dataoecd/8/61/2376087.pdf

Statistical Theme: Financial statistics

Created on Thursday, January 03, 2002

Last updated on Friday, January 18, 2002