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A “good” new brand — What happens when new brands try to stand out through corporate social responsibility

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  • Robinson, Stefanie
  • Wood, Stacy

Abstract

Corporate social responsibility (CSR) is increasingly used as a key part of a firm's branding strategy, especially for new brands hoping to stand out in mature markets. Unfortunately, data here demonstrate that new product trial is lower when new brands tout CSR activity than when they do not. To understand this surprising phenomenon, we find CSR has a negative effect on new brands' perceived product performance. Happily, we find a fix for new brands; negative effects for new brands can be reversed if the company explicitly signals a priority for both the product and its CSR endeavors. Importantly, we do not see a similar negative impact of CSR on established brands.

Suggested Citation

  • Robinson, Stefanie & Wood, Stacy, 2018. "A “good” new brand — What happens when new brands try to stand out through corporate social responsibility," Journal of Business Research, Elsevier, vol. 92(C), pages 231-241.
    • Handle: RePEc:eee:jbrese:v:92:y:2018:i:c:p:231-241
    DOI: 10.1016/j.jbusres.2018.07.031
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    References listed on IDEAS

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    Cited by:

    1. Alfred Z. Liu & Angela Xia Liu & Sangkil Moon & Donald Siegel, 2024. "Does Corporate Social Responsibility Always Result in More Ethical Decision-Making? Evidence from Product Recall Remediation," Journal of Business Ethics, Springer, vol. 191(3), pages 443-463, May.
    2. Eric Van Steenburg & Nwamaka A. Anaza & Ahmed Ashhar & Andres Barrios & Ashley R. Deutsch & Meryl P. Gardner & Preeti Priya & Abhijit Roy & Anu Sivaraman & Kimberly A. Taylor, 2022. "The new world of philanthropy: How changing financial behavior, public policies, and COVID‐19 affect nonprofit fundraising and marketing," Journal of Consumer Affairs, Wiley Blackwell, vol. 56(3), pages 1079-1105, September.
    3. Yong Liu & Qian Xu & Zhi‐yang Liu, 2020. "A coordination mechanism through value‐added profit distribution in a supply chain considering corporate social responsibility," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(4), pages 586-598, June.

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