With prices expressed in euros, the price spread between private label brands and national brands could be less visible in all the European countries where the price scale is going to be compressed. This price spread often being a key factor in the demand for private label brands, the preferences, and thus, potentially, the market share, could be reduced. The measure of consumers' buying intentions of three categories of products confirms the lower perception of price differences when they are expressed in euros. The results also show different customer sensitivities according to their behavior and attitude towards private label brands and the belief in the quality of these brands. The existence of a visible threshold effect created by rounded prices, which would allow the reconstitution of a significant perceived spread between the prices of private label brands and of national brands, is only partially confirmed.
DESMET, P. and GASTON-BRETON, C. (2000). Experimental Study of the Effect of the Swith to the Euro on the Intention to Buy Private Label Brand. In: Proceedings of the 29th EMAC Conference (CD-Rom). Erasmus University of Rotterdam.