CRM and luxury

: effects of campaign manipulations on customers' behaviors and perceptions

Abstract

With growing customer demand for corporate social responsibility and more ethical businesses, luxury brands are faced with the trade-off between luxuriousness and sustainability. This research wants to understand if cause-related marketing could be a viable CSR initiative and what constitutes an effective campaign. The effects of a CRM campaign on customers' behaviors and perceptions are studied by proposing different scenarios to respondents in an online survey. The survey investigated customers’ purchase intentions, willingness to pay, perception of quality and luxuriousness, and level of guilt in response to different manipulation on a CRM campaign (namely, on price, presence of CRM, luxury or non-luxury context, and alignment). Data were analyzed through independent samples t-tests and descriptive statistics. The findings suggest that CRM is a valid option for luxury brands that could bring about positive effects on the brand, the partner NPO and the customers. The research found customers are more prone to buy products that are linked with charity donations and an aligned CRM initiative positively influences their willingness to pay. The study aims to enrich existing literature and provide guidance for an effective CRM campaign.

Date of Award	25 Jan 2024
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Sérgio Moreira (Supervisor)