Product differentiation via corporate social respo

Authors: Marco Costanigro Oana Deselnicu Dawn Thilmany McFadden

Publish Date: 2015/07/28

Volume: 33, Issue: 3, Pages: 597-609

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Abstract

This article examines quantitatively the determinants of purchase decisions based on corporate social responsibility CSR adopting a hierarchical conceptual model of decision making where the key factors are personal concern information availability and financial considerations We use best–worst methods to assess consumer priorities personal concern for CSR activities in milk production and elicit consumer interpretation of four labels organic Validus Colorado Proud and rBST free in terms of CSR and other outcomes information availability We then elicit willingness to pay WTP for the labels financial considerations and estimate regression models to determine how predictive each label perceptual profile is of WTP for milk Animal welfare and sustainable agricultural practices are the most important activities and milk labels do convey CSRrelated messages With the exception of the pair animal welfareValidus the link between CSR messages and WTP is tenuous The discussion emphasizes the central role of each label’s perceptual profile in triggering product differentiation among consumers

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