| Summary: | The emergence of private labels has become one of the most significant developments in retail management in recent years, becoming one of the main competitive instruments against large manufacturers. But how do consumers perceive private labels, as just another national brand, or do they clearly differentiate them in their choice process, and does the private label really compete with the leading national brands? In order to answer these and other questions, we use the methodology of choice models to establish the positioning of private labels from the perspective of the consumer choice process. In this sense, this paper makes a contribution to the literature by combining the use of nested logit structures with a competitive map estimated from the price response matrix for each brand. Thus, we analyse the competitive structure of national and private brands from a double perspective: on the one hand, from the perspective of each brand, analysing its power of influence and its vulnerability over other brands and, on the other hand, from the perspective of the consumer, analysing how consumers differentiate between both types of brands when they go to the shop. To do so, we use a panel of olive oil scanner data for the year 2002, from a hypermarket located in a capital city in south-eastern Spain and owned by a large retailer.
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