CHICAGO, Jan. 13 (Xinhua) -- Although the values of haute couture designer handbags and clean drinking water campaigns would seem to clash, "value instantiation," which promotes the integration of disparate values, can help luxury brands thread the needle and counteract the adverse effects of value incompatibility, according to a study posted on the website of the University of Illinois (UI) on Monday.
In two studies, the researchers employed different approaches for value instantiation. In the first study, they exposed participants to the philanthropic activities of self-enhancement-driven celebrities. In the second, the researchers encouraged participants to visualize themselves engaging in philanthropic activities while pursuing self-enhancement values.
The results of both studies point to value instantiation as an effective tool in offsetting the harmful effects of integrating social responsibility appeals while selling luxury goods.
"It's a way for luxury brands to cope with trying to be more pro-social but not backfiring because of the incompatibility that the two things bring about," said Carlos Torelli, a professor of business administration at UI.
The effect was particularly evident among the core consumer segment of luxury brands, who strongly pursue self-enhancement values, and thus would normally respond most negatively to social responsibility appeals, according to the researchers.
"It may seem disingenuous for a luxury brand to tout its altruism through its corporate social responsibility activities, but in marketing and branding, the trend for social responsibility has been growing dramatically over the last 20 years," Torelli said. "It used to be that a corporation was a profit-maximizing entity that didn't worry about anything else. But eventually, that's not optimal because firms have a responsibility and an interest in not behaving badly - in not contributing to pollution or damaging the environment, and not exploiting labor."
The research ultimately provides strategic guidance for luxury brands that wish to incorporate corporate social responsibility initiatives into their brand platform, Torelli said.
The research has been published in the journal Marketing Letters.
