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Does Communicating Sustainability Raise Luxury Brand Equity? An Experimental Study

Anzer, Julia LU and Signorelli, Enrico LU (2018) BUSN39 20181
Department of Business Administration
Abstract
This paper aims at exploring the effects of sustainability communication on luxury brand equity, in particular whether it can raise brand equity. The concept of sustainability has become more important for all types of consumers, which at the same time brings implications for businesses. Many mainstream brands have started to engage in sustainability practices and are willing to inform consumers about it. However, most luxury brands are still reluctant towards sustainability communication. This study aims at solving the research problem of whether luxury brands should communicate sustainability activities towards consumers or not. Other aims are to offer new insights on the research topic, to suggest implications for luxury (and regular)... (More)
This paper aims at exploring the effects of sustainability communication on luxury brand equity, in particular whether it can raise brand equity. The concept of sustainability has become more important for all types of consumers, which at the same time brings implications for businesses. Many mainstream brands have started to engage in sustainability practices and are willing to inform consumers about it. However, most luxury brands are still reluctant towards sustainability communication. This study aims at solving the research problem of whether luxury brands should communicate sustainability activities towards consumers or not. Other aims are to offer new insights on the research topic, to suggest implications for luxury (and regular) brands and to contribute to the existing gap between luxury brands and sustainability communication.

The method used was a survey based on experimental design. In total, 198 surveys were analyzed to find out how different types of advertisement (regular and sustainable) influenced brand equity of luxury and regular brands. The results of the study revealed that communicating sustainability did not have a positive effect on customer based brand equity of both types of brands. However, communicating sustainability raised the sustainability perception of luxury and mass-market brands. Therefore, it is suggested that luxury brands that wish to be perceived sustainable by consumers, should communicate sustainability. However, brand equity cannot be raised through sustainability communication, according to the findings of this study. (Less)
Please use this url to cite or link to this publication:
author
Anzer, Julia LU and Signorelli, Enrico LU
supervisor
organization
course
BUSN39 20181
year
type
H1 - Master's Degree (One Year)
subject
keywords
communication, sustainability, brand equity, luxury brands, fast fashion
language
English
id
8949603
date added to LUP
2018-06-28 14:31:47
date last changed
2018-06-28 14:31:47
@misc{8949603,
  abstract     = {{This paper aims at exploring the effects of sustainability communication on luxury brand equity, in particular whether it can raise brand equity. The concept of sustainability has become more important for all types of consumers, which at the same time brings implications for businesses. Many mainstream brands have started to engage in sustainability practices and are willing to inform consumers about it. However, most luxury brands are still reluctant towards sustainability communication. This study aims at solving the research problem of whether luxury brands should communicate sustainability activities towards consumers or not. Other aims are to offer new insights on the research topic, to suggest implications for luxury (and regular) brands and to contribute to the existing gap between luxury brands and sustainability communication. 
 
The method used was a survey based on experimental design. In total, 198 surveys were analyzed to find out how different types of advertisement (regular and sustainable) influenced brand equity of luxury and regular brands. The results of the study revealed that communicating sustainability did not have a positive effect on customer based brand equity of both types of brands. However, communicating sustainability raised the sustainability perception of luxury and mass-market brands. Therefore, it is suggested that luxury brands that wish to be perceived sustainable by consumers, should communicate sustainability. However, brand equity cannot be raised through sustainability communication, according to the findings of this study.}},
  author       = {{Anzer, Julia and Signorelli, Enrico}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Does Communicating Sustainability Raise Luxury Brand Equity? An Experimental Study}},
  year         = {{2018}},
}