Understanding the CSR-luxury paradox: The duality of luxury and responsibility in consumer perceptions

Abstract

This article delves into the intricate dynamics between luxury businesses' environmental responsibility initiatives and consumer perceptions, grounded in the theory of reasoned action. Utilizing three experimental studies, this article explores the interplay of corporate social responsibility (CSR) message framing (responsibility-focused vs. dignity-focused) and the nature of the luxury business (established vs. entrepreneurial). Study 1 examines the interaction between luxury brand type and CSR message framing, revealing that responsibility-focused narratives enhance consumer interest in entrepreneurial brands but not in established ones. Study 2 investigates the psychological mechanisms underlying these effects, finding that dignity-focused narratives increase consumer engagement through perceived authenticity and alignment with self-image. Study 3 employs longitudinal field research to track actual buying behaviors, showing that dignity-focused messages significantly boost spending, brand loyalty, and satisfaction, particularly for entrepreneurial brands. The findings illuminate the nuanced consumer reactions to CSR initiatives, underscoring the importance of message framing and brand nature in shaping luxury consumption attitudes.