The reference-independence of CSR expectations for luxury firms.

Consumers actively look to and expect businesses to engage in charitable donation activities. While past research has demonstrated the strategic benefits that corporate social responsibility (CSR) affords to firms, little is known about the way consumers apply subjective (or objective) ethical standards for corporate donations. Our research focuses on the way expectation standards of CSR are applied to luxury (versus non-luxury) companies. Do consumers hold a belief that luxury firms are expected to donate more? Four experimental studies find robust and converging evidence that consumers do not hold luxury firms to a higher standard; instead, they take on the normative belief that companies are obligated to donate equal amounts. This reference-independence holds stable across different product categories (Studies 1a and 1b), perspectives (Study 2), and attempts to alter the belief (Study 3). However, individual differences do exist among consumers regarding the level of donation expected, particularly for materialists and spendthrifts. Specifically, moderation analyses reveal that materialists and spendthrifts (compared to non-materialists and tightwads) expect higher levels of corporate donations regardless of the type of firm (i.e., luxury vs. non-luxury). This research extends the discussion of subjective ethical beliefs in the context of luxury CSR

Economic impact of marketing alliances on shareholders' wealth

Purpose – The purpose of this paper is to examine whether marketing alliances create value for shareholders, and whether the results are robust across different business cycles. Design/methodology/approach – Using standard event study methodology, abnormal returns (AR) were computed for 402 firms which formed marketing alliances in a 12-month period covering three business time periods, namely bull, bear and post 9/11 periods. ANOVA and regression analyses were performed on cumulative abnormal returns (CAR). Findings – Significant and positive AR were found on announcement day for firms forming marketing alliances. When the sample is segmented by market capitalization, small cap firms were found to stand to benefit the most, particularly when partnering with a large firm. During the bear market period, marketing alliances tend to benefit small cap firms and firms with low profitability, whereas during the bull market period, marketing alliances benefit firms with low asset utilization. Research limitations/implications – Results are limited by the accuracy of the models used to measure AR. Practical implications – The results seem to suggest that smaller partners tend to benefit more from marketing alliance, and the effect changes with business cycle. Originality/value – The paper analyses how the benefits of forming a marketing alliance are shared between partnering firms and how the different phases of business cycle influence the distribution of benefits.Business cycles, Marketing, Shareholder value analysis, Strategic alliances