The influence of category-level drivers and perceived hedonicity on online private label brands market share

The competition between private label brands (PLBs) and national brands (NBs) in online retail is becoming increasingly significant. While the factors driving offline competition are well understood, online factors are less clear. Online purchases are riskier than offline, so category characteristics like perceived hedonicity may be crucial. This study analyzes category-level drivers of online PLB market share, including the PLB-NB price ratio, category penetration, number of SKUs, promotional intensity, and purchase frequency. It also examines how perceived hedonicity interacts with these drivers. Additionally, the impact of these drivers on offline market share is tested to compare online and offline antecedents. Using Nielsen panel data from 2007 to 2020 for 51 categories, the study confirms the negative effect of category penetration and SKUs and the positive effect of the PLB-NB price ratio on online PLB market share, revealing several interaction effects. Theoretical and managerial implications are discussed.