Premium private label brands (PPLBs) are receiving increased attention in line with their significant growth. Private label brands (PLBs) have been evolving from offering low quality at a low price to high quality at a higher price. Among multiple tiers of PLB, PPLBs are assumed to be in an exclusive tier and compete with top-tier national brands.
In consumers’ minds, PPLBs are perceived and evaluated in reference to alternatives represented by regular private label brands (RPLBs) and top-tier national brands (NBs). Thus, for PPLBs, being able to provide outstanding value that is perceived in relation with competitive alternatives is a critical issue. In addition, related marketing entities such as a store type are assumed to affect consumers’ perceptions and evaluations.
Based on cue utilization theory and categorization theory, this research aims to identify key relationships influencing the perceived luxuriousness and eventual purchase intention of PPLB products. This research analyzes what strategies make consumers perceive a PPLB to be luxurious and in turn, increase purchase intention. The empirical study consists of a survey conducted among college students in their 20s in Korea. The data were analyzed to test the theoretical framework using a confirmatory factor analysis and structural equations.

• Seoyoung Kim(Korea University, Republic of Korea)
• Sungkyu Lee(Korea University, Republic of Korea)
• Jong-Ho Lee(Korea University, Republic of Korea)
• Charles R. Taylor(Villanova University, USA)