The willingness to pay for cause related products: Empirical evidence from a conjoint analysis in Mexico

Bernardo Amezcua (), Arturo Briseño, Teresa Ríos and Edgardo Ayala
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Bernardo Amezcua: Universidad Autónoma de Coahuila, México
Arturo Briseño: Universidad Autónoma de Tamaulipas, México
Teresa Ríos: Universidad de Monterrey, México
Edgardo Ayala: Tecnológico de Monterrey, México

Contaduría y Administración, 2018, vol. 63, issue 2, 233-254

Abstract: Marketing campaigns aligned with Corporate Social Responsibility (CSR) practices are increasing as a strategy to reach brand differentiation and consumer preference. However, the challenge for many firms is to understand the impact of social and environmental campaigns in consumer’s perception and how these campaigns create economic and social value. Knowing that consumers make decisions based on several attributes, we use a conjoint analysis to determine the influence of CSR campaigns, brand, and price over purchase decisions. Data was collected online from a sample of Mexican consumers and was analyzed using panel data. From this sample we evaluate the direct and indirect effects of CSR campaigns in consumer preference, developing a method to map the preference increase in monetary terms. Our results show that consumers are willing to pay a premium price around 22% for leading brands if their products are associated with social campaigns and 10% for regular suppliers. This effect is not present in environmental campaigns. We prove that social campaigns create economic benefits for the firm, whereas society benefits from consumers’ participation in social campaigns.

Keywords: Brand Preference; Corporate Social Responsibility; Price Premium; Conjoint analysis. (search for similar items in EconPapers)
JEL-codes: D40 M14 M21 M31 (search for similar items in EconPapers)
Date: 2018
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