Private Label Embarrassment: The Effects of Checkout Type and Brand Type on Purchase Intention, and the Mediating Role of Embarrassment

Abstract

This master’s thesis dives into the unexplored topic of private label embarrassment. Specifically, we were interested in whether private labels are more embarrassing compared to national brands and whether self-service checkouts mitigate this embarrassment, consequently yielding differences in purchase intention. We conducted a 2x2 between-subjects experimental design with the factors checkout type (self-service checkout vs. manned checkout) and brand type (private label vs. national brand). By assigning objects to one of the four possible conditions, we manipulated these factors. Through an online experiment (n = 288), we find that private labels indeed are perceived to be embarrassing compared to national brands. Moreover, we find support for the mitigating effect of self-service checkouts on private label embarrassment. Our findings further indicate that embarrassment is partially mediating the relationship between brand type and checkout type on purchase intention. Consequently, purchase intention for private labels was found to be higher in self-service checkouts compared to manned checkouts. Supporting theory-based expectations, our results further imply a moderating effect of brand embarrassment tendency on several relationships in our model. We derive several theoretical and managerial implications from our results that are valuable for both academicians and practitioners.