This Cannot Be a Private Label: Effects of Private Labels on Consumer Sensory Evaluation

Despite the growing number of premium private labels, many consumers still perceive these products as cheaper substitutes for national brands. This paper proposes a boundary condition for this phenomenon by examining the moderating role of brand disclosure in the relationship between brand label (national brand vs. private label) and sensory evaluation for different product categories. Results show that brand disclosure can reverse consumer sensory evaluation, demonstrating a negative perceptual bias against private labels. When consumers are informed of brand label, national brands taste better than private labels; however, results reverse in blind tests. This paper explores possible strategies for retailers to deal with the gap between private labels and national brands.