Does Being Good Pay Off? An Investigation of Consumers’ Price Response to Social Product Information

Dirk C. Moosmayer

Chapter 3 in Pricing Perspectives, 2008, pp 77-98 from Palgrave Macmillan

Abstract: Abstract In recent years corporate social responsibility (CSR) has been increasingly discussed in practice as well as in scientific discussions (see, for example, Baron and Diermeier, 2007). While some use the alleged Friedman quote to argue that the business of business is business rather than social issues, others claim that companies have a responsibility that goes beyond the business arena (Hansen and Schrader, 2005). An intermediate position assumes that CSR is a business case as many socially responsible activities pay off — at least in the long run. On the one hand, social activities may have an effect on the cost side of the balance sheet by saving resources such as energy, and by saving marketing expenditure through increased customer loyalty (Maignan et al., 1999), or by reducing the risk of crises such as corporate scandals or product harm (Klein and Dawar, 2004). On the other hand, socially responsible corporate behavior might lead consumers to buy more of a company’s products or pay more for social product features (Elliott and Freeman, 2001). This latter aspect will be investigated in this contribution. Therefore, consumers’ price response to social product features will be analysed with regard to the following questions:

Keywords: Corporate Social Responsibility; Negativity Bias; Purchase Intention; Corporate Social Responsibility Activity; Corporate Social Performance (search for similar items in EconPapers)
Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-59489-0_3

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DOI: 10.1057/9780230594890_3

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