Evaluating the Impact of Private Label Brands vs. National Brands on Purchase Intention: The Mediating Role of Brand Embarrassment

Abstract

This study examines the impact of brand-related embarrassment on purchase intention in the grocery context. By integrating theories of product brand type, and brand embarrassment, social risk, brand congruence, the study also sheds light on the moderating role of social risk and brand congruence in affecting the effects of private label brand purchases on consumer’s embarrassment and consequently purchase intention. A survey was conducted among 241 Norwegian residents as well as international individuals residing in Norway and utilizing Norwegian grocery stores. Data analysis was performed using smartPLS. The results indicate embarrassment significantly mediates the effects of private label brand purchase and social risk on purchase intention. Similarly, this moderating effect is observed in the relationships between brand incongruence and brand purchases. However, in the absence of contextual considerations, there is a significant direct effect of private label brand purchases on embarrassment. These findings offer valuable managerial insights for decision-makers regarding product brand selection and store configuration.