From personal to corporate social responsibility: (de)individuation in luxury retailing

Abstract

PurposeThe New York Times has suggested replacing sustainable fashion with responsible fashion, emphasizing the need for joint efforts by both individual consumers and retailers to take responsibility for their own decisions and actions. This study seeks to investigate the mechanism that activates individuals' personal social responsibility (PSR) and its association with their perceived corporate social responsibility (CSR) from a responsible luxury fashion retailer.Design/methodology/approachAn online experiment was conducted with a nationwide US sample of luxury consumers who were randomly assigned to either individuation or deindividuation groups. Covariance-based structural equation modeling (CB-SEM) and multi-group SEM were employed to test the hypotheses.FindingsIndividuals' universalism positively affected PSR, which then enhanced their recognition of a responsible luxury retailer’s CSR and led to a greater willingness to pay a premium. More importantly, the positive effect of universalism on PSR was strengthened when consumers’ unique individuality, rather than their deindividuated state, was emphasized. Moreover, the moderating effect of individuation was indirectly transmitted through PSR to perceived CSR, hence reinforcing the relationship between PSR and CSR.Originality/valueThis study significantly advances existing scholarship on sustainable luxury retailing and adds rigor to deindividuation theory by demonstrating the central role of PSR and the moderating effect of individuation in enhancing recognition of a luxury fashion retailer’s CSR commitments. The findings provide luxury fashion retailers with communication and marketing strategies that highlight consumers' unique individuality to more effectively activate their sense of personal responsibility and thereby increase their recognition of the retailer’s CSR.