Gopal Das, John Peloza, Geetika Varshneya and Todd Green
Although research demonstrates the importance of ethical product attributes for consumers, a prior study has not examined the role of consumption target (i.e. self-purchases vs…
Abstract
Purpose
Although research demonstrates the importance of ethical product attributes for consumers, a prior study has not examined the role of consumption target (i.e. self-purchases vs gift-giving) on consumers’ preference for products with ethical attributes. Notably, consumers’ preference for quality can differ between self-purchases and gifts, and the presence of ethical attributes can impact product quality perceptions. The purpose of this paper is to examine how the presence of ethical attributes alters decision-making in a gift-giving context using perceptions of product quality as an explanatory variable for these differences.
Design/methodology/approach
One field study and two controlled experiments test the proposed hypotheses. The experiments were conducted across different product categories and samples.
Findings
Results showed that the presence of an ethical attribute leads to higher purchase intentions for products in a gift-giving context compared to self-purchase. Perceived quality mediates this effect. Further process evidence through moderation, including resource synergy beliefs, support the findings. This paper discusses the theoretical, managerial and societal implications of these results.
Research limitations/implications
Although care was taken to select products to enhance generalizability, the studies presented here are limited to two products. Further, although the present research includes a field study with actual charity-related purchases, the role of time pressures is not explicitly explored. Finally, the role of brand-self connections is not explored in the current research. The ability for a donor to integrate the mission of a charity into their self-perception or the potential for social normative influences to impact behaviors remains open for exploration.
Practical implications
Charities are facing increasing pressures to raise sustainable funds to support their missions. The research provides guidance to marketers and fundraisers in the non-profit sector that allows them to direct more focused fundraising appeals to donors and adapt their fundraising efforts to create a fit between their audience and fundraising appeals.
Originality/value
This research demonstrates that consumption target (purchasing for the self versus purchasing for others) is a vital contextual factor that influences customer preference for ethical attributes. These results complement the extant literature by exploring the underlying mechanism behind consumers’ responses to the ethical attributes in the case of self-purchase and other-purchase. The underlying effect is supported theoretically by resource synergy beliefs.
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Alexis M. Allen, Todd Green, Michael K. Brady and John Peloza
The purpose of this paper is to examine how and when a reputation for corporate social responsibility (CSR) can deter dysfunctional consumer behaviors (DCBs) such as shoplifting…
Abstract
Purpose
The purpose of this paper is to examine how and when a reputation for corporate social responsibility (CSR) can deter dysfunctional consumer behaviors (DCBs) such as shoplifting or negative word-of-mouth (WOM) in response to firm failures. The authors predict that congruency of the CSR activities and the basis for the firm failure (e.g. environmental protection, environmental harm) provides protection for firms while incongruency (e.g. environmental protection, social harm) does not. The authors base this prediction on the process of retroactive attribution and sense-making.
Design/methodology/approach
Across two studies the research finds support that a reputation for CSR can deter consumer dysfunctional behavior. Study 1 uses an experimental design with a Mturk sample, and a behavioral outcome using an overpayment situation, to examine when consumers will act honestly and recognize overpayment. Study 2 uses secondary data, across three novel data sources (Google trends data, an existing data set of consumer perceptions of CSR and Factiva to uncover press coverage of negative firm events). Study 2 examines how CSR reputation impacts consumers’ participation in negative WOM in response to firm failures.
Findings
Study 1 finds support for CSR congruency as a protection mechanism against dysfunctional behavior in response to negative events. The authors find that dysfunctional behaviors in conditions of congruency, while incongruent and a control condition do not provide such protections. Study 2 supports these findings using Google trends data in the form of online negative WOM. The authors find that when firms are known for their social performance, negative events in the social domain result in significantly lower levels of negative WOM.
Originality/value
The current paper makes the novel prediction that consumers will use a current negative event (corporate social irresponsibility) to re-evaluate previous CSR. Thus, in contrast with prior research, the authors argue that a negative event is not affected by previous CSR but that previous CSR is affected by a negative event. Furthermore, the authors posit that the congruency between the transgression and previous CSR moderates consumer perceptions, such that incongruent CSR and transgression contexts lead to increased DCBs through consumers’ retroactive sense-making process.
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William J. Montford, John Peloza and Ronald Earl Goldsmith
The current research contributes to the marketing literature by examining, and more importantly, better understanding a presentation format (i.e. PACE) in which caloric…
Abstract
Purpose
The current research contributes to the marketing literature by examining, and more importantly, better understanding a presentation format (i.e. PACE) in which caloric information is complemented with physical activity time required to offset consumption. The purpose of this paper is to systematically evaluate the impact of this approach in both actual and simulated consumption settings while providing evidence of its contribution to healthier decision-making. This research uncovered several important insights into how consumers are influenced by, and respond to, the presence of physical activity time.
Design/methodology/approach
The paper used experiential designs in five studies to examine how the presence of physical activity calorie equivalent (PACE) information affects consumption. The studies measured both intended and actual consumption behavior. The data were analyzed using analysis of variance as well as bootstrapping methods.
Findings
The paper establishes that PACE information reduces consumption compared to NLEA-mandated information. We show that the effectiveness of PACE information differs based on consumers’ level of health consciousness as well as food type. Our research also uncovers a moderating effect based on perceived difficulty of the featured activity. Finally, we show the psychological process underlying the effectiveness of PACE information.
Research limitations/implications
Future research can address the generalizability of current findings across different consumption domains and contexts. Our work focuses on the efficacy of information delivery at the point of consumption. The results of the current study may differ when the decision is being made at the point of purchase for future consumption.
Practical implications
The paper’s findings represent a win-win scenario for consumers and manufacturers alike. Manufactures stand to benefit from PACE information as many consumers are seeking healthier food options and are willing to pay a premium for items that help them make more healthful choices. Consumers will benefit as well, given the struggle with obesity and other diet-related ills, by being provided with a more effective means of making healthier choices.
Social implications
Obesity and diet-related chronic diseases are global pandemics affecting consumers throughout the world. This paper contributes to this issue by presenting manufacturers and researchers with a better understanding of how consumers can be encouraged to make healthier choices and overcome the barriers to healthier lifestyles.
Originality/value
This paper addresses a gap in the literature as well as an important social concern by better understanding how healthier nutrition choices can be encouraged.
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Research examining corporate social responsibility (CSR) demonstrates a relatively consistent level of positive support by consumers. However, CSR is poorly defined and little is…
Abstract
Purpose
Research examining corporate social responsibility (CSR) demonstrates a relatively consistent level of positive support by consumers. However, CSR is poorly defined and little is known about the mechanisms by which this response occurs. This paper seeks to understand how consumers define CSR and how it can enhance the overall value proposition for consumers.
Design/methodology/approach
The value typology developed by Sheth et al. is integrated with qualitative data to enhance understanding of these value paths. Interviews were conducted with consumers through the heart of the current recession, when consumers were particularly aware of value when making purchase decisions.
Findings
The way in which CSR manifests itself determines consumer support. CSR can provide three forms of value to consumers: emotional, social, and functional. Each of these enhances or diminishes the overall value proposition for consumers. Further, value created by one form of CSR can either enhance or diminish other product attributes.
Practical implications
The current research helps managers understand how CSR can create value for consumers. As a result, managers can better position products in order to enhance overall value. Further, practitioners can match the value with which consumers identify from CSR to the dominant value driver in their product category.
Originality/value
This study highlights that CSR includes a range of activities with differential means of adding value to consumers.
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This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting‐edge research and case studies.
Abstract
Purpose
This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting‐edge research and case studies.
Design/methodology/approach
This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.
Findings
Whatever the product or service, whatever the organization, these days corporate social responsibility is an essential part of doing business. Not having a strategic plan for acting in a socially responsible manner, and letting your customers know what you are about, is an open invitation to competitors to muscle in on your enterprise.
Practical implications
The paper provides strategic insights and practical thinking that have influenced some of the world's leading organizations.
Originality/value
The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy‐to digest format.
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Béchir Ben Lahouel, Jean-Marie Peretti and David Autissier
This paper aims to explore the power of one of the primary organizational stakeholders (shareholders) in the development of a corporate social performance (CSP) score. Few…
Abstract
Purpose
This paper aims to explore the power of one of the primary organizational stakeholders (shareholders) in the development of a corporate social performance (CSP) score. Few research works in the CSP empirical literature have studied the relationship between stakeholder power and CSP.
Design/methodology/approach
Stakeholder theory is used as a theoretical framework to explain how shareholder voting power can influence the CSP level of French publicly listed companies. Stakeholder theory is tested through the operationalization of Ullmann’s (1985) three-dimensional model. Hypotheses related to shareholder voting power, strategic posture and financial performance are formulated through a literature review. A Data Envelopment Analysis approach was presented as a strong tool to measure CSP level. Multiple linear regressions were undertaken to test the hypotheses in a sample of 129 French companies between 2006 and 2007.
Findings
The results indicate that companies with dispersed ownership and high proportion of institutional shareholders record a high score of CSP. Strategic posture measured by the implementation of environmental certification standard was positively and significantly related to CSP. Financial performance does not affect significantly the level of CSP.
Originality/value
This paper is the first to empirically analyse the relationship between Ullmann’s three-dimensional model and CSP level in the French context. It offers to managers a better understanding of the power that certain stakeholders can use to acquire satisfaction.
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Shou-Lin Yang, Yung-Ming Shiu and Tsung-Chi Liu
The purpose of this paper is to re-examine the statement of Peloza (2006) that enterprise corporate social responsibility (CSR) investment provides a protection efficacy similar…
Abstract
Purpose
The purpose of this paper is to re-examine the statement of Peloza (2006) that enterprise corporate social responsibility (CSR) investment provides a protection efficacy similar to insurance.
Design/methodology/approach
This study uses the event study method and data from the 2008-2010 China listed company social responsibility report and the Taiwan Economic Journal.
Findings
The authors find that the insurance-like effect of CSR investment also exists in China. Both short- and long-term CSR investments of Chinese companies provide this efficacy to corporate stock prices. The authors also find diminishing marginal insurance-like effects in China market.
Originality/value
The CSR investment of firms in China can reduce company stock-price loss when negative events occur. The authors therefore obtain a better understanding of the value of enterprise CSR investment.
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Lerzan Aksoy, Alexander John Buoye, Maja Fors, Timothy Lee Keiningham and Sara Rosengren
The purpose of this paper is to highlight challenges for service firms communicating Environmental, Social and Governance (ESG) efforts to customers. Specifically, it focuses on…
Abstract
Purpose
The purpose of this paper is to highlight challenges for service firms communicating Environmental, Social and Governance (ESG) efforts to customers. Specifically, it focuses on the relationship between ESG metrics and reporting and customer perceptions of social innovativeness.
Design/methodology/approach
The empirical material comprises three years of data (2018–2020) covering more than 100 firms from three sources: (1) Social Innovation Index (Sii), which is collected as part of the American Innovation Index (Aii), (2) Bloomberg Sustainability Accounting Standards Board (SASB) ESG and (3) Datamaran.
Findings
ESG metrics and reporting do not suffice to explain customer perceptions of social innovativeness. Rather, a firm's industry plays the prominent role in affecting these perceptions where service firms are at a disadvantage as customers perceive services as less socially innovative compared to goods.
Practical implications
While ESG metrics and reporting provide important information for investors and regulators, they are not reflected in customers' perceptions of firms' social innovativeness, and services are at a disadvantage relative to goods. Therefore, services researchers and managers must advance their knowledge regarding how to better link ESG metrics and report to customers' perceptions.
Originality/value
The paper offers a first large-scale, cross-industry investigation of how ESG metrics and reporting impact customer perceptions of social innovativeness, leading to a research agenda on communication of ESG.
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When fast fashion brands launch corporate social responsibility (CSR) programs, consumers may consider these brands to behave hypocritically as their business model is generally…
Abstract
Purpose
When fast fashion brands launch corporate social responsibility (CSR) programs, consumers may consider these brands to behave hypocritically as their business model is generally perceived as being inconsistent with sustainable practices. Built on construal level theory (CLT), this study aims to examine how the benefit appeals that are widely used in CSR initiatives affect perceived corporate hypocrisy and the CSR performance of fast fashion brands.
Design/methodology/approach
This study designed an online experiment with a 2 (fashion brand: fast fashion vs. unknown) × 2 (benefit appeal: self-benefit vs other-benefit) stimulus, using a virtual label named “Eco Care” for experimental manipulation. A total number of 298 Chinese consumers participated in the experiment and they answered an online survey.
Findings
It was found that the brand types (fast fashion vs unknown) and benefit appeals (self-benefit vs other benefit) did not elicit perceived corporate hypocrisy nor did them directly affect perceptions of CSR performance. However, there was a significant interaction effect of them. That is, fast fashion brand’s CSR performance was judged based on how the brand framed its sustainability claims. A fast fashion brand’s CSR label significantly increased hypocrisy perceptions when the label used a self-benefit appeal and the interactive effect of the fast fashion brand and the self-benefit appeal hindered the formation of a green brand image and brand purchase intentions.
Originality/value
This study adds a body of knowledge to the literature by examining the relationship between benefit appeals and perceived corporate hypocrisy from the perspective of CLT. The findings can help fast fashion marketers better understand the critical role of benefit appeals by acknowledging that the misuse of communication strategies may result in unfavorable consequences, thus ruining their efforts to improve their brand’s image.
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This paper aims to clarify the relationship between consumer accountability and responses to egoistic and altruistic appeals. It proposes that when consumers’ relationships with…
Abstract
Purpose
This paper aims to clarify the relationship between consumer accountability and responses to egoistic and altruistic appeals. It proposes that when consumers’ relationships with others are heightened in the form of accountability, different prosocial message appeals become effective. The study expands the understanding of how marketing may enhance the efficacy of prosocial campaign messages.
Design/methodology/approach
The study utilized three online experimental studies to test hypotheses across different population samples and health product categories. Self-benefit and other-benefit appeals were tested to decrease meat consumption (Study 1), increase vaccination intent (Study 2) and purchase oxybenzone-free sunscreen (Study 3). Results provide converging evidence for the proposed interaction between appeal type and accountability.
Findings
When consumers believe their choices will be known or discussed with others, they are more persuaded by other-benefit or altruistic appeals. Contrary to some existing research, Study 3 found that when public accountability was heightened, hybrid appeals were less effective than a solely altruistic appeal in generating purchase intent, digital engagement and attitude change, even controlling for social desirability.
Research limitations/implications
Public accountability was manipulated only in an online setting, and future studies should replicate with greater ecological validity. Results inform how scholars, brands and organizations should approach message efficacy in prosocial campaigns, particularly when an individual’s relationship with others may become salient.
Practical implications
The paper includes implications for the development and deployment of various organizational strategies such as changing the appeal depending on where a message will be viewed by consumers. Importantly for digital campaigns, maximum digital engagement arises from an altruistic appeal in a public context.
Originality/value
This paper fulfills an identified need to understand how organizations can successfully encourage prosocial consumer behavior, as well as bridges literature gaps on accountability and appeal efficacy.