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Gilt and Guilt: Should Luxury and Charity Partner at the Point of Sale?

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  • Hagtvedt, Henrik
  • Patrick, Vanessa M.

Abstract

If luxury retail strategy aims to generate awe rather than community, while charities convey community rather than awe, should luxury and charity partner at the point of sale? This research suggests that an association with charity at the point of sale can increase choice of (Study 1) and purchase intent toward (Study 2) a luxury brand and can facilitate upselling to a luxury (vs. value) store brand (Study 3). Further, it implicates guilt reduction as the underlying process mechanism (Studies 2 and 3). Managerial and retailing implications for cause-related marketing of luxury (vs. value) brands are discussed.

Suggested Citation

  • Hagtvedt, Henrik & Patrick, Vanessa M., 2016. "Gilt and Guilt: Should Luxury and Charity Partner at the Point of Sale?," Journal of Retailing, Elsevier, vol. 92(1), pages 56-64.
    • Handle: RePEc:eee:jouret:v:92:y:2016:i:1:p:56-64
    DOI: 10.1016/j.jretai.2015.07.004
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