Overcoming the conflicting values of luxury branding and CSR by leveraging celebrity endorsements to build brand equity

In response to consumer demands for brands to be more socially responsible, luxury brands have been engaging and promoting their corporate social responsibility (CSR) initiatives to build brand equity. However, the past literature suggests that lack of compatibility between values related to luxury and CSR could lead to negative reactions from consumers. This research investigates how luxury brands can overcome the challenge of communicating their CSR initiatives by leveraging celebrity endorsers. Specifically, a celebrity endorser who is perceived to care about social causes can transfer meaning associated with self-transcendence and self-enhancement to the messaging, thus increasing the perception of fit between the brand and the social cause, which consequently impacts brand equity. The findings of this study offer research implications for academics, and practical considerations for luxury brand managers interested in finding ways to effectively communicate their CSR initiatives to consumers.