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Do Consumers Care About Ethical-Luxury?
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This article explores the extent to which consumers consider ethics in luxury goods consumption. In particular, it explores whether there is a significant difference between consumers’ propensity to consider ethics in luxury versus commodity purchase and whether consumers are ready to purchase ethical-luxury. Prior research in ethical consumption focuses on low value, commoditized product categories such as food, cosmetics and high street apparel. It is debatable if consumers follow similar ethical consumption patterns in luxury purchases. Findings indicate that consumers’ propensity to consider ethics is significantly lower in luxury purchases when compared to commoditized purchases and explores some of the potential reasons for this reduced propensity to identify or act upon ethical issues in luxury consumption.
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... On the other hand, luxury and sustainability signals can also be considered inherently contradictory, as we often perceive luxury as prestigious and excessive since luxury consumption is associated with ostentatious indulgence (Osburg et al., 2021). Hence, consumers may respond negatively when processing sustainable luxury products because of the perceived incompatible nature of these product cues (e.g., Davies et al., 2012;Ki & Kim, 2016;Osburg et al., 2022) and, ultimately, avoid paying for them. ...
... Overall, despite some research providing evidence for an overall positive impact of sustainable luxury products (compared to their conventional alternatives) on consumer behavior, the empirical evidence suggests a certain incompatibility between sustainability and luxury attributes, preventing a synergistic effect in case of the joint communication of both signals (see : Achabou & Dekhili, 2013;Davies et al., 2012, Osburg et al., 2022. Therefore, we expect the positive influence of a sustainability signal on consumers' behavioral responses to be weaker for luxury products than for mass-market products. ...
... Quality Value As one of the core drivers of luxury consumption (Sun et al., 2017), consumers of luxury products particularly consider product quality before purchasing, and they are more sensitive to quality fluctuations (Davies et al., 2012). While sustainability features must not imply a loss of product quality (Achabou & Dekhili, 2013), previous research identifies consumers' quality concerns to be among the main barriers to sustainable consumer choices (e.g., Gleim et al., 2013;Osburg et al., 2016). ...
Coinciding with the rising development of emerging markets, sustainable consumption practices in these markets are increasingly under scrutiny. In this context, we compare empirical results from consumers in four countries (three emerging markets and one developed market) in an experimental study to uncover patterns of preferences for sustainable luxury products (i.e., products that combine sustainability and luxury characteristics). Our findings illustrate that consumers’ quality, emotional, price, and social value perceptions, as well as purchase and electronic word-of-mouth intentions, are consistently higher in all three emerging markets compared to the developed market. We find that sustainability (vs. conventional) product features increase consumers’ product value perceptions and behavioral intentions, although this effect is partially stronger for the developed compared to the emerging market(s). We further show a positive sustainability effect for luxury products, this effect is stronger for mass-market products. Combining sustainability and luxury signals leads to similar effects in emerging and developed markets. Thus, emerging markets have promise in terms of scope for incorporating sustainability characteristics into luxury products. Sustainable luxury consumption can therefore be understood as a manifestation of global consumer culture.
... Ethics Davies et al. (2012), Guiltinan (2009) impact on corporate reputation, consumer trust, and loyalty, leading to positive outcomes for companies (Stanaland et al., 2011). Consumers' ethical perceptions on sharing economy platforms are shaped by various factors such as privacy, security, shared value, fulfillment/reliability, and service recovery. ...
... When it comes to luxury purchases, consumers tend to prioritise factors such as quality, product satisfaction, prestige, and self-image over ethics (Davies et al., 2012). Sample Demographics -Overlooks sample demographics, such as age and education level. ...
... Organic and sustainable food products are one aspect of food that may be perceived as luxurious one since more and more consumers shift their emphasis to different dimensions of luxury instead of prestige (Hartmann et al. 2017). Davies et al. (2012) explored the role of ethics in the consumption of luxury goods. They found that there is a difference in purchasing decisions between luxury and commodity products. ...
The generational cohorts known as Millennials and Generation Z exhibit distinct behaviors and attitudes, differing significantly from older generations in various aspects including environmental perceptions and purchasing behaviors. Notably, organic foods are sometimes associated with luxury, as highlighted in existing literature. This study aims to explore how Greek Millennial and Gen Z consumers perceive the concept of luxury in relation to organic food products and how their perceptions of environmental sustainability influence both their perceptions and purchasing behaviors. A structured questionnaire served as the research tool, utilizing the New Environmental Paradigm scale to assess respondents’ views on environmental sustainability. The data were analyzed using descriptive and inferential statistics, including tests for mean values, correlation coefficients, and regression models. The findings indicate that consumers’ perceptions of environmental sustainability positively impact their willingness to purchase organic foods. Additionally, there are noticeable differences between Millennial and Gen Z consumers in their perceptions of organic foods, and purchasing luxury foods positively correlates with the propensity to buy organic products. The findings of this research can be used by manufacturers and retailers in food sector.
... 1 Introduction n recent years, the consumption of luxury goods has seen a significant surge across various demographics and geographies. This trend is driven by a combination of factors including rising disposable incomes, increased urbanization, and the proliferation of digital media that exposes consumers to luxury lifestyles (Cannon & Rucker, 2018;Davies et al., 2011;Pencarelli et al., 2019;Siepmann et al., 2021;Turunen & Leipämaa-Leskinen, 2015;Wirtz et al., 2020). The luxury goods market encompasses high-end fashion, accessories, vehicles, and other premium products that signify status, wealth, and exclusivity (Jain et al., 2017). ...
Objective: The objective of this study is to identify and present a self-discrepancy model based on individual differences and to analyze its impact on the behavior of luxury goods consumers in Qazvin, Iran. Methodology: This study employed a mixed-methods approach, comprising both qualitative and quantitative research. Initially, a comprehensive literature review was conducted to define key variables and their interrelationships. This was followed by in-depth interviews with experts in consumer behavior and psychology to refine the conceptual model and develop the research questionnaire. The quantitative phase involved surveying luxury goods consumers in Qazvin using the developed questionnaire. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with the aid of SMART-PLS 3 software to test the proposed hypotheses. Findings: The findings indicate that self-discrepancy significantly influences luxury consumption behaviors, with consumers using luxury goods to bridge the gap between their actual and ideal selves. Individual differences such as personality traits, demographic factors, and cultural background were found to significantly impact luxury consumption. Digital media and influencers were identified as crucial factors shaping consumer attitudes and purchase intentions. Additionally, religiosity and cultural norms were found to either constrain or motivate luxury consumption. Socio-economic factors like income and education levels were also significant determinants, with higher income and education correlating with increased luxury consumption. Conclusion: The study highlights the complex interplay between self-discrepancy, individual differences, and socio-cultural factors in driving luxury consumption behaviors. It provides a comprehensive model that integrates these elements, offering valuable insights for luxury brand marketers to develop targeted and effective strategies. The findings suggest that marketers should emphasize the social and self-enhancement benefits of luxury goods, leverage digital media and influencers, and tailor their messages to resonate with local cultural values and norms. Future research should expand the scope to include more diverse samples and explore specific luxury categories in greater detail.
... Corporate social responsibility (CSR) is one of the effective marketing strategies organizations aim for strong and long-lasting relationships. More and more customers buy their products based on their observations and understanding of the organization's social responsibility, primarily environmental issues (Davies et al., 2012;Grimmer & Bingham, 2013). ...
Purpose – This paper investigates the mediating role of green brand loyalty between green brand image and word-of-mouth (WoM) and the moderating role of green promotion and brand social responsibility among Vietnamese youth. Research methodology – Using an online questionnaire from 1st October 2022 to 31st December 2022, 740 valid responses were collected. Findings – The study reveals that green brand loyalty mediates the relationship between brand trust and WoM. Additionally, green promotion significantly moderates the relationship between brand trust and green brand loyalty. The study concludes that green promotion is vital in influencing consumers’ trust in the brand, subsequently increasing their loyalty. Research limitations – This study has not categorized the groups of environmentally friendly products used by young Vietnamese to see if there is a difference. Practical implications – These results provide significant implications for brand managers to enhance the effectiveness of WoM. Originality/Value – Green promotion is an effective strategy for brands to regain consumers’ loyalty and maintain a close relationship between consumers and green brands. Additionally, green brand loyalty emphasizes the significance of green promotion for developing green companies and can serve as a conduit between customers and brands.
... The study of ethical or sustainable luxury emerged only recently (Davies et al., 2012;Kapferer, 2010), and research interest is recently gaining traction (Athwal et al., 2019;Osburg et al., 2021). Sustainable luxury is a broad term that englobes various ideas such as responsible luxury, green luxury, eco-luxury, or organic luxury (Athwal et al., 2019;Janssen et al., 2014). ...
Despite the economic, social, and environmental importance of emerging countries, most existing research into ethical consumerism has focused on developed market contexts. We introduce this Special Issue (SI) and provide a comprehensive thematic literature review considering three broad categories or aspects of ethical consumerism research, (1) contexts of ethical consumption, (2) forms of ethical consumerism, and (3) approaches to explaining ethical consumer behavior. We summarize the articles of this SI as part of the thematic literature review to provide an understanding of how these articles and this SI’s overall contribute to ethical consumerism research. Each article in this SI offers new insights into a specific field of ethical consumerism while focusing on emerging market contexts. Overall, this SI expands knowledge related to the dynamics and challenges of ethical consumerism and offers future research directions in this area.
Purpose
This study aims to test the effect of cause-related marketing (CRM), campaign-related marketing and consumer-related antecedents on consumers’ behavioral responses in a developing-country context.
Design/methodology/approach
A descriptive cross-sectional research design was used. An online questionnaire was distributed, and a sample of 738 Egyptians was obtained. Both the SPSS25 and Smart PLS software were used to report the results.
Findings
Results revealed that campaign-related antecedents had stronger effects on consumer attitudes than consumer-related antecedents. The most important campaign-related antecedents were brand function fit and hedonic product type. Extrinsic religiosity affected brand attitude and was also the most important predictor of purchase intention. Other predictors of purchase intention were brand attitude, hedonic product type and brand function fit. Furthermore, the effect of brand attitude on purchase intention was positive and significant. Cause involvement and others’ – centered attribution of corporate motives positively moderated the relationship between attitudes and purchase intention. Conversely, skepticism and self-centered attribution of corporate motives negatively moderated brand attitudes and purchase intention relationships. Research implications and suggestions for future research were also presented.
Originality/value
The study contributes to the existing academic literature by providing a better understanding of the effect of consumer and campaign-related variables on consumer attitudes and purchase intentions in a CRM context. It also helps understand the role of the two dimensions of religiosity in forming attitudes and purchase intentions for CRM campaigns. Furthermore, the research examines two possible moderators of the attitude–behavior gap through the lenses of signaling theory, prosocial behavior theory, theory of reasoned action and attribution theory.
This study aims to present a review for understanding the changing definition of luxury consumption. The ‘new’ luxury concept is shaped by democratization, globalization, sustainability, and meeting luxury with non-western societies. Although the first footsteps of new luxury began to be heard in the early 2000s, studies on this subject started to increase after 2010. This review focuses on 129 studies carried out in 2010-2021 to explain new luxury concept. It was concluded that ‘attainable luxury’, ‘creatable luxury’, ‘sustainable luxury’ and ‘rental (shareable) luxury’ can be components of new luxury. Accordingly, a framework was created, and adjacent keywords were presented with references. Finally, a research agenda for this ‘new’ luxury trend was presented. In contrast to the current many literature reviews on luxury treating the issue as a conservative and classical concept, this study focuses on the ‘new luxury’ and its potential horizons.
Strictly speaking, there is no such thing as private business since business activities have widespread and sometimes far-reaching impacts on the community. The side-effects of entrepreneurial decision making - increasing unemployment, for instance, or pollution - increasingly expose corporations to the public gaze, with management in the limelight.
Facing Public Interest opens up new vistas on business policy and corporate communications facing public interest. The relationship between private enterprise and public interest is subjected to an ethical examination, highlighting the role of the general public as a locus of morality for business and the guiding concept of a corporate dialogue between management and the concerned public. Instructive case studies are also presented.
The volume not only proposes corporate dialogue: it puts into practice. Business leaders, representatives of citizens' groups, public affairs consultants, and academics discuss the topics thoroughly and thoughtfully in the best contributions to the seventh conference on the European Business Ethics Network, held at the University of St. Gallen in September 1994.
This study examines the impact of a social desirability response bias as a personality characteristic (self- deception and impression management) and as an item characteristic (perceived desirability of the behavior) on self-reported ethical conduct. Findings from a sample of college students revealed that self-reported ethical conduct is associated with both personality and item characteristics, with perceived desirability of behavior having the greatest influence on self-reported conduct. Implications for research in business ethics are drawn, and suggestions are offered for reducing the effects of a socially desirable response bias.