Examining the moderating role of principle-based entity of luxury brands and its effects on perceived CSR motives, consumer situational scepticism and brand resonance

Abstract

PurposeThis study aims to examine the moderating role of principle-based entity (PBE) of luxury brands and its effect on perceived corporate social responsibility (CSR) motives, consumer situational scepticism and brand resonance.Design/methodology/approachStructural equation modelling using multigroup analysis was used. Data were collected through a consumer panel.FindingsValues-driven motives lowered consumer situational scepticism (CSS) significantly more in PBE than non-PBE. However, egoistic-driven motives increased CSS significantly more in PBE than non-PBE. Stakeholder-driven motives and strategic-driven motives did not elicit CSS, contrary to prior studies in non-luxury brands. PBE status also weakens the relationship between CSS and brand resonance more than non-PBE status.Originality/valueThis study is the first to provide empirical insights into PBE status and its effects on perceived motives, CSS of CSR initiatives and its influence in consumer and management outcomes in luxury brands.