Willingness to pay in a differentiated private-label setting

Abstract

Private-label has been emerging as a trend in consumer-packaged goods throughout the years.This is the outcome of the increasing demand for products with similar characteristics to thenational brands at lower prices. As a consequence, retailers are facing a more competitiveenvironment and therefore need to improve their positioning by offering a more completeproduct portfolio, targeting different consumer needs.This dissertation studies the impact of the three-tiered private-label portfolio strategy,consisting of economy, standard and premium stock-keeping units (SKUs), on consumer’swillingness to pay. Moreover, the mediator role of both perceived quality and brand image isanalyzed through a serial mediation model.The experimental study is focused on the olive oil product category of Continente, a Portuguesefood retailer. Respondents were exposed to one of the three SKUs and asked questionsregarding perceived quality, brand image and willingness to pay.The findings of this research indicate no direct effect of the private-label tier on consumers’ willingness to pay. Nonetheless, perceived quality is identified as a complete mediator of therelationship between these two variables. On a complementary note, brand image does not havea significant impact on the dependent variable, willingness to pay.

Date of Award	26 Jun 2023
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Paulo Romeiro (Supervisor)