【Abstract】Companies often use hierarchical labels to describe the products in a choice set (e.g., Bronze/Silver/Gold, or Silver/Gold/Platinum). Does the label of the tiered products influence consumer choices? Through five experiments (totaling 1,954 participants), we find a labeling effect. On the one hand, consumers are more likely to make a purchase (i.e., they are less likely to defer) in the first place with superior-sounding labels. On the other hand, such labels shift choices down towards cheaper-priced products. Further, we find that product labeling moderates the choice share of a middle option such that the well-documented compromise effect diminishes with superior-sounding labels due to the shift towards cheaper-priced options. Our research contributes to the literature on framing effects, choice deferral, and the compromise effect. Our findings suggest companies should use superior-sounding labels if they want to increase overall sales, but inferior-sounding labels when they care more about increasing choices of higher-priced products.