Recently, the luxury sector has witnessed a significant rise in luxury consumption, reaching £233 Billion in 2022 (Statista, 2022). This rise demonstrates the growing popularity of the luxury consumption phenomenon globally. However, the climate crisis may impact future trends in luxury consumption (Gardetti and Muthu, 2019). The luxury sector has endorsed a considerable growing demand for sustainability from environmental and ethical luxury consumers. In recent years, concerns have grown around the ethicality of supply chains, where consumers develop contradictory feelings and beliefs, veering between conscious and hedonistic decision-making (Kleinhaus, 2011; Helm, 2020; Wang et al. 2021). Moreover, consumers face a conflict between choosing what they believe is ethically right and indulgence (Hennigs et al. 2013). The supply chain plays an important role in achieving sustainability goals, and yet some researchers argue that the luxury supply chain can involve ethical and environmental breaches in terms of labour and raw materials, such as use of leather and fur (Klerk et al. 2018). However, some luxury brands such as Stella McCartney and Vivienne Westwood are focused on sustainability and the use of vegan raw materials (YNAP, 2021).

This research was conducted in order to examine whether the type of credit card (premier vs. standard card) influences consumer purchase decisions regarding luxury consumption. The present research reports three experiments with online panels of non-student adults, which find that (1) the use of a premier card (vs. a standard card) leads to a more goal-congruent choices, (2) the effect is mediated by a temporary increase in the perception of pride, and (3) the effect is pronounced for people with a low level of chronic pride. The effect of payment methods on consumer spending has been a concern of theory and research in consumer behavior (Bernthal, Crockett, & Rose, 2005; Feinberg, 1986; Prelec & Lowenstein, 1998; Soman, 2001). This research stream has shown that consumers tend to spend more when they use a credit card than when they pay cash and has proposed various theoretical mechanisms to account for the phenomenon (Chatterjee & Rose, 2012; Prelec & Simester, 2001; Soman, 2001; Thomas, et al., 2011). However, researchers have paid little attention to the effect of different types of credit cards (i.e., premier vs. standard card) on consumer decisions. We contend that the use of a premier card (vs. a standard card) can increase the feeling of pride momentarily and in turn increase consumers’ motivation to pursue a long-term goal that they value. As a result, they prefer a choice alternative that is more congruent with the goal. To be specific, the use of a premier card would increase the choice of luxury alternative, and that this effect would be pronounced for those who value material possessions (i.e., high materialism). This expectation was confirmed in the studies that we have performed. In three experiments, participants were shown a credit card(either premier or standard) and were asked to assume that they were going to use it for their purchase. Then, they were asked to make choices in shopping contexts. Participants with premier credit card, compared to those with standard card, showed more goal-consistent choices. They were more likely to choose luxury alternatives, and this effect was apparent only for those who have a high materialistic value. When the choice set includes both a low-calorie food and a high-calorie food, the use of a premier card increased the choice of low-calorie food, and this effect was apparent only for those with diet goal. These effects were mediated by the feeling of pride. Three studies in combination provide insights into the effect of types of credit cards on consumer spending regarding luxury consumption and the processes underlying the effect, which have not been reported elsewhere. The use of a premier credit card (vs. a standard credit card) led to a greater choice of luxury alternatives over standard alternatives and a greater choice of low-calorie foods over high-calorie foods. However, these effects were apparent only when people highly valued the goal under consideration (i.e., high materialism or strong diet goal). Finally, these effects were attributable to a momentary increase in the perception of pride by virtue of the use of a premier card, and consequently, the effects were observable only for people who have a relatively low chronic pride. The effects we observed in this research generalized over different product categories and different long-term goals. Nevertheless, it is desirable to extend findings in more diverse consumption categories (e.g., services) as well as to identify additional variables that moderate the magnitude of the effect. In addition, it is worth considering alternative underlying mechanisms than the one we considered (i.e., the feeling of pride) in future research. For example, a premier card may increase individuals’ construal level, thereby affecting consumer purchase decisions.

The willingness to actively contribute to more sustainability bares important challenges for managers who must take strategic decisions. The literature about corporate social responsibility has developed in many directions, with often a divide in focus, between society (Acquier & Aggeri, 2015) or corporate sustainability and responsibility (Bansal & Song, 2017). The paper sits at the intersection of these fields by focusing on the question of ethical dilemmas. The objective is to approach the question of ethics in context, through the trade-offs that managers are facing when taking strategic decisions to build sustainable business models, to discuss the contours of the ethical competences at work. The paper focuses on a specific context, the one of successful pure players of sustainability in the luxury fashion industry. It means first that we leave aside the question of organizational change to analyze the core dilemmas that even new actors that start from scratch must face. These pure players could also be named “social entrepreneurs” (Elkington & Hartigan, 2008) or “elegant disrupters” (Bendell & Thomas, 2013). Second, by focusing on luxury fashion we locate our analysis in an industry where the nature of the activity is both a source of salient controversies and of exemplary practices (Kapferer, 2010; Godart & Seong, 2014), two aspects that have the potential to make visible some dilemmas. We focus on a small number of cases of organizations that we selected per criteria of similarities and differences, to allow for an inductive in-depth comparative case study (Yin, 2009). The four organizations are: a producer of yak products, a fur recycling company, a fur auction house and a digital platform for emerging designers. The cases are similar in that each organization is a successful promoter of sustainable practices. The four cases however differ in that each puts at the core of the business model different types of sustainability issues and is based at a different level of the value chain (sourcing, fabrication, intermediation and market access). Also, the four organizations differ in the degree to which they aim to disrupt existing practices in the luxury fashion industry. Data were collected through a series of interviews and complementary press articles, websites and reports. Data analysis proceeds in two steps. We start by narrating each case through the voice of the organization, to describe and understand the rationale behind each business model. We then further our interpretation of the cases through a comparative analysis by systematically recording the tensions or contradictions. Each firm organizes the activity around key engaging choices that promote sustainability but do not lift some inbuilt dilemmas–labelled as: sustainability vs. luxury fashion, sustainability vs. sustainability, and sustainability today vs. tomorrow. The paper highlights how innovative players can openly discuss some dilemmas, approaching sustainability as a story they care about but also as a debate. Yet, the paper also points to the fact that some dilemmas may remain harder to reflect upon, especially the ones that can counter in the long-run the objectives that were at the base of the business. Some questions as the one of growth, in time and scale, might push far the reflexive ability but it is also where ethical competences might be the most needed.

The relationships among corporate social responsibility (CSR) practices, corporate identity, and Hedonic and Utilitarian Dimensions of Consumer Attitude were evaluated for the luxury corporation Hermes. Discretionary CSR practices and moral/ethical CSR practices emerged as significant predictors of the corporate social values dimension of identity. Relational CSR practices, however, contributed mainly to the expertise dimension of corporate identity. Also, familiarity with CSR practices of a corporation had a significant effect on corporate identity, which in turn affected both dimensions of consumer attitude. Both corporate expertise and corporate social values were significant predictors of consumer attitude. The results are interpreted within a dual process model of corporate identity.