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Unpacking private labels: How discount, standard, and premium tiers shape national brand loyalty

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  • Casteran, Gauthier
  • Chrysochou, Polymeros

Abstract

This study examines how the structure of the private label brand (PLB) market influences national brand (NB) loyalty. Focusing on distinct PLB tiers - discount, standard, and premium - we provide insights into how these tiers, individually and collectively, affect NB loyalty. Drawing on consumer panel data from Denmark covering 29 FMCG categories (2006–2022), we analyze how key PLB metrics - price, assortment size, and market share – relate to NB loyalty. The findings demonstrate that treating PLBs collectively yields results that differ markedly from tier-specific analysis, underscoring the unique impact of each tier. This tiered approach reveals that PLB strategies at various levels generate varied competitive outcomes for NBs. The study contributes to branding and retailing research by (i) demonstrating that PLBs are better conceptualized as a tiered rather than a homogeneous structure, (ii) extending cue utilization theory to explain how PLB tier signals influence consumer loyalty, and (iii) providing managerial guidance on how tier-specific PLB strategies can either reinforce or erode NB loyalty.

Suggested Citation

  • Casteran, Gauthier & Chrysochou, Polymeros, 2026. "Unpacking private labels: How discount, standard, and premium tiers shape national brand loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:joreco:v:90:y:2026:i:c:s0969698925004849
    DOI: 10.1016/j.jretconser.2025.104705
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    References listed on IDEAS

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