Gilt and Guilt: Should Luxury and Charity Partner at the Point of Sale?

•Three experiments investigate luxury–charity collaboration at the point of sale.•We show that CM communication enhances preference for luxury brands.•This influence is mediated by guilt reduction.•Dependent variables include purchase intent and actual choice.

If luxury retail strategy aims to generate awe rather than community, while charities convey community rather than awe, should luxury and charity partner at the point of sale? This research suggests that an association with charity at the point of sale can increase choice of (Study 1) and purchase intent toward (Study 2) a luxury brand and can facilitate upselling to a luxury (vs. value) store brand (Study 3). Further, it implicates guilt reduction as the underlying process mechanism (Studies 2 and 3). Managerial and retailing implications for cause-related marketing of luxury (vs. value) brands are discussed.

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