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This paper investigates the formation of consumers’ brand attitudes towards the individual private label (PL) of a retailer based on two retailer-controlled factors, namely retailer price positioning and store atmosphere. Based on the literature, we formulate hypoth-eses which we test in an experiment. Our research design uses a fictitious retailer and a typical three-tier PL portfolio, including economy, standard, and premium PL. Across all three PL tiers, we find that only store atmosphere has a significant main effect on brand attitude. We do not find a significant main effect of retailer price position or a significant interaction. Our findings confirm the strategy changes observed from hard discounters who invest in the en-vironment of their stores.

This paper investigates the formation of consumers’ brand attitudes towards the individual private label (PL) of a retailer based on two retailer-controlled factors, namely retailer price positioning and store atmosphere. Based on the literature, we formulate hypoth-eses which we test in an experiment. Our research design uses a fictitious retailer and a typical three-tier PL portfolio, including economy, standard, and premium PL. Across all three PL tiers, we find that only store atmosphere has a significant main effect on brand attitude. We do not find a significant main effect of retailer price position or a significant interaction. Our findings confirm the strategy changes observed from hard discounters who invest in the en-vironment of their stores.