Abstract

This research examines whether rating favorability for private label products impacts product attitude and purchase intentions. Three experimental studies provide converging evidence of an effect of rating favorability on purchase intentions for private label products that is fully mediated by product attitude. In the first experiment, our findings revealed a significant indirect effect of rating favorability on purchase intentions, completely mediated by product attitude; however, no significant pattern in direct effects or interactions involving rating frequency emerged. The second experiment established the robustness of first experiment’s results, and provided support for generalizability of findings to a different brand and a new set of products associated with higher prices. The third experiment examined the moderating role of brand familiarity and product novelty; findings are consistent with experiment 1 and 2 outcomes, and revealed no significant direct or interaction effects. Thus, consumers’ lack of motivation for information processing for low-involvement products leads them to the peripheral route of persuasion with reference to Petty and Cacioppo's Elaboration Likelihood Model. However, the finding that for consumer-packaged goods offered by private labels, rating frequency, brand familiarity, and product novelty do not influence consumers’ purchase intentions is contrary to previous findings, especially involving experience products and established brands. The current research suggests that private labels are unique with reference to the direct and indirect effects of rating favorability on purchase intentions, and discusses theoretical and managerial implications. Future research into the generalizability of these findings to other product categories (e.g., apparel, electronic goods, etc.), and a comparison to national brands may be fruitful.