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Overcoming the conflicting values of luxury branding and CSR by leveraging celebrity endorsements to build brand equity

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Abstract

In response to consumer demands for brands to be more socially responsible, luxury brands have been engaging and promoting their corporate social responsibility (CSR) initiatives to build brand equity. However, the past literature suggests that lack of compatibility between values related to luxury and CSR could lead to negative reactions from consumers. This research investigates how luxury brands can overcome the challenge of communicating their CSR initiatives by leveraging celebrity endorsers. Specifically, a celebrity endorser who is perceived to care about social causes can transfer meaning associated with self-transcendence and self-enhancement to the messaging, thus increasing the perception of fit between the brand and the social cause, which consequently impacts brand equity. The findings of this study offer research implications for academics, and practical considerations for luxury brand managers interested in finding ways to effectively communicate their CSR initiatives to consumers.

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Authors and Affiliations

  1. Marketing Department, College of Business Administration, California State University San Marcos, San Marcos, CA, 92096, USA

    Fernanda Muniz

  2. Department of Marketing, Logistics, and Operations Management, G. Brint Ryan College of Business, University of North Texas, PO Box 311396, Denton, TX, 76203-1396, USA

    Francisco Guzmán

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  1. Fernanda Muniz
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  2. Francisco Guzmán
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Correspondence to Fernanda Muniz.

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Appendices

Appendix 1


Low-fit ad message:

  • Rolex for UNICEF

  • HELP CHILDREN

  • Children of the world are often at risk, exposed to conflicts, diseases, and natural disasters.

  • ROLEX partners with UNICEF and JUSTIN BIEBER to help children

  • Join us now at Rolex.com.

  • Together, we can make a difference.


Control ad message:

  • Rolex for UNICEF

  • HELP CHILDREN

  • Children of the world are often at risk, exposed to conflicts, diseases, and natural disasters.

  • ROLEX partners with UNICEF to help children

  • Join us now at Rolex.com.

  • Together, we can make a difference.


High-fit ad message:

  • Rolex for UNICEF

  • HELP CHILDREN

  • Children of the world are often at risk, exposed to conflicts, diseases, and natural disasters.

  • ROLEX partners with UNICEF and LEONARDO DICAPRIO to help children

  • Join us now at Rolex.com.

  • Together, we can make a difference.

Appendix 2


Low-fit condition:

Sapphire is a well-known traditional fashion luxury brand established in 1854. Sapphire is currently considering for the first time to launch a world-wide campaign announcing its partnership with a celebrity and the non-profit organization Children of the World to help children exposed to conflicts, diseases, and natural disasters.

The celebrity is a well-known actress with more than 10 million followers on Instagram. She has received critical acclaim for her work in a wide range of film genres and has won an Academy Award and three Golden Globe Awards.


Control:

Sapphire is a well-known traditional fashion luxury brand established in 1854. Sapphire is currently considering for the first time to launch a world-wide campaign announcing its partnership with the non-profit organization Children of the World to help children exposed to conflicts, diseases, and natural disasters.


High-fit condition:

Sapphire is a well-known traditional fashion luxury brand established in 1854. Sapphire is currently considering for the first time to launch a world-wide campaign announcing its partnership with a celebrity and the non-profit organization Children of the World to help children exposed to conflicts, diseases, and natural disasters.

The celebrity is a well-known actress with more than 10 million followers on Instagram. She has received critical acclaim for her work in a wide range of film genres and has won an Academy Award and three Golden Globe Awards. She is also known for her humanitarian work helping children with education and health care around the world.

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Muniz, F., Guzmán, F. Overcoming the conflicting values of luxury branding and CSR by leveraging celebrity endorsements to build brand equity. J Brand Manag 28, 347–358 (2021). https://doi.org/10.1057/s41262-021-00230-0

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  • DOI: https://doi.org/10.1057/s41262-021-00230-0

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