Within luxury, an area that is becoming increasingly important due to the visibility of this industry is Corporate Social Responsibility (CSR). While consumers are still not actively demanding CSR in luxury products and services, and there is evidence that CSR is not a key area of interest for the luxury industry; the luxury industry is becoming the target of non-governmental organizations (NGOs) and other stakeholders interested in environmental and ethical practices. Thus, it is essential that luxury companies explore CSR implementation, as neglecting to do so, is likely to affect their brands and their brand value.
Due to the increasing relevance of CSR within luxury, this research explores the role of CSR within luxury and how it, together with other factors, contributes to brand value in luxury. An additional consideration is that despite the importance of brand value in luxury, the industry does not normally measure, manage and leverage brand value. As a result, it is also necessary to examine how brand value is perceived within luxury.
To meet these research goals, a mixed methods approach was selected. More specifically, a theoretical framework was built with input from the literature and interviews with key interviewees from the luxury industry. Then, the theoretical framework was tested quantitatively. The quantitative analysis was conducted with a dataset based on consumer panels, and additional secondary data including Bloomberg, CSRHub, Dow Jones Sustainability Index (DJSI), Interbrand, and company reports. The results were subject to ‘credibility checks’ with interviewees from the industry. It is noteworthy to highlight that for the statistical analysis, one of the largest datasets with US consumer data was used. Similarly, for the qualitative interviews, representatives from some of the largest luxury companies in the world in terms of brand value, and luxury stakeholders were recruited.
Table of Contents
- Chapter 1: Introduction
- 1.1 Research Rationale
- 1.1.1 Why Luxury?
- 1.1.2 Why CSR?
- 1.1.3 Why Brand Value?
- 1.1.4 Why Focusing on the Entire Luxury Industry Rather Than a Single Company?
- 1.1.5 Gap in Knowledge
- 1.2 Statement of Contribution
- 1.3 Research Questions
- 1.4 Research Objectives
- 1.5 Organization of the Thesis
- Chapter 2: Literature Review
- 2.1 Luxury
- 2.1.1 What Is Luxury
- 2.1.1.1 Working Definition of Luxury
- 2.1.2 Luxury - A Business Model of Its Own
- 2.1.3 Complexity of the Luxury Industry
- 2.1.3.1 Differences by Category and Type of Product
- 2.1.3.2 Company and Consumer Perception of Luxury Brands
- 2.2 CSR and Luxury
- 2.2.1 Introduction to Business Ethical Concepts
- 2.2.1.1 Stakeholder Theory
- 2.2.1.2 Corporate Citizenship
Objectives and Key Themes
This research explores the role of Corporate Social Responsibility (CSR) within the luxury industry and its contribution to brand value. It investigates the industry's understanding and management of brand value, examining factors beyond CSR that influence it. The study utilizes a mixed-methods approach, combining a literature review with interviews and quantitative analysis of consumer data. The goal is to provide a comprehensive understanding of the interplay between CSR, other brand value determinants, and the overall success of luxury brands.
- The relationship between CSR and brand value in the luxury industry.
- The factors influencing brand value in the luxury sector beyond CSR.
- The luxury industry's understanding and management of brand value.
- The implementation and impact of various CSR strategies within luxury brands.
- The potential for CSR to drive consumer demand and enhance competitive advantage in the luxury market.
Chapter Summaries
Chapter 1: Introduction: This chapter sets the stage for the research by outlining its rationale. It explains the importance of studying CSR within the context of the luxury industry, highlighting the industry's significant financial scale and the growing scrutiny of its ethical and environmental practices. The chapter emphasizes the critical role of brand value as an intangible asset for luxury firms and explores the gap in knowledge regarding the interplay between CSR and brand value. The research questions and objectives are clearly defined, outlining the scope and direction of the study's investigation into the complexities of luxury branding and corporate responsibility. The chapter concludes with a roadmap of the thesis, providing a clear structure for the subsequent chapters.
Chapter 2: Literature Review: This chapter provides a comprehensive overview of existing literature on luxury, CSR, and their intersection. It establishes a working definition of luxury, exploring the unique business model and complexities inherent within this industry. The review delves into the diverse perspectives on luxury brands from both companies and consumers. The second part of the chapter focuses on CSR and its theoretical underpinnings within business ethics. This includes an exploration of stakeholder theory and the concept of corporate citizenship, setting the groundwork for understanding CSR's role in the luxury sector. The chapter synthesizes existing research to identify gaps in knowledge and to inform the overall research approach of the thesis.
Frequently Asked Questions: Comprehensive Language Preview
What is the overall topic of this research?
This research explores the relationship between Corporate Social Responsibility (CSR) and brand value within the luxury industry. It investigates how CSR contributes to brand value and examines other factors influencing brand value in this sector.
What are the key themes explored in this research?
Key themes include the relationship between CSR and brand value in the luxury industry; the influence of factors beyond CSR on brand value; the luxury industry's understanding and management of brand value; the implementation and impact of various CSR strategies; and the potential for CSR to drive consumer demand and enhance competitive advantage.
What methodology is used in this research?
The research employs a mixed-methods approach, combining a literature review with interviews and quantitative analysis of consumer data to provide a comprehensive understanding of the interplay between CSR, other brand value determinants, and the overall success of luxury brands.
What is covered in Chapter 1: Introduction?
Chapter 1 establishes the research rationale, explaining the importance of studying CSR in the luxury industry. It highlights the industry's scale and growing scrutiny of ethical and environmental practices. It defines the research questions and objectives and provides a roadmap for the thesis.
What is covered in Chapter 2: Literature Review?
Chapter 2 provides a comprehensive overview of existing literature on luxury, CSR, and their intersection. It defines luxury, explores its unique business model, and examines diverse perspectives on luxury brands. It also delves into CSR's theoretical underpinnings in business ethics, including stakeholder theory and corporate citizenship.
What is the research's contribution?
The research aims to contribute to a comprehensive understanding of the complex interplay between CSR, brand value determinants, and the overall success of luxury brands. It addresses a gap in knowledge regarding this specific relationship within the luxury sector.
What specific research questions are addressed?
While not explicitly listed as numbered questions, the research implicitly addresses questions surrounding the nature of luxury, the effectiveness of CSR initiatives in building luxury brand value, the relative importance of CSR compared to other factors in driving brand value, and the impact of different CSR strategies on consumer perception and purchasing behavior within the luxury market.
Why focus on the entire luxury industry rather than a single company?
This approach allows for a broader understanding of the phenomenon, capturing the diverse practices and perspectives across the luxury sector and avoiding biases associated with focusing on a single case study. This provides a more generalizable understanding of CSR's impact on brand value in the luxury industry.
What are the objectives of this research?
The main objective is to understand the relationship between CSR and brand value in the luxury sector. This involves investigating the influencing factors on brand value beyond CSR, how the luxury industry manages brand value, and the impact of different CSR strategies.
How is brand value defined and measured in this research?
The specific definition and measurement of brand value are not explicitly detailed in this preview. The research likely employs established methods and metrics for brand valuation, which would be described in detail within the full thesis.
- Quote paper
- Ramon Bravo Gonzalez (Author), 2017, Corporate Social Responsibility and Brand Value in Luxury, Munich, GRIN Verlag, https://www.grin.com/document/369601
