Branding Behavior in the Danish Food Industry

Abstract

Cross-sectional data from a survey of Danish firms are used to examine branding behavior in 2002 and its change between 1997 and 2002. Summary data from the survey are presented. Branding behavior is defined and relevant literature is reviewed. Based on hypotheses developed from this literature and supporting features of the Danish food marketing chain, six econometric models are specified. Specification accounts for dependent variables' characteristics (count and fractional data, and truncated samples) Missing values are replaced using Griliches' method (Griliches, 1986) Large firms are found to own and introduce the most brands, although few associations with the commodity sector are identified. Firms' use of retail brands is found to substitute for brand introduction in the long run and to increase with ownership by retail firms. Conclusions are drawn regarding the strategic stance of retailers in the Danish food system and its employment of retailers' own-label brands.