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Corporate social and environmental responsibility in services: Will consumers pay for it?

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  • Parsa, H.G.
  • Lord, Kenneth R.
  • Putrevu, Sanjay
  • Kreeger, Jeff

Abstract

Two studies investigate consumer awareness of and response toward socially and environmentally responsible practices in the hospitality industry. Results suggest that consumers exhibit more positive response toward establishments exhibiting higher levels of social responsibility, although many are uninformed of the extent to which the organizations they patronize engage in such practices. Most consumers are willing to incur a modest price increase while patronizing an organization that behaves in an environmentally and socially responsible fashion, but that willingness declines dramatically as the price premium escalates. Consumers with high involvement in and positive attitudes toward corporate social responsibility practices are most willing to pay a premium.

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  • Parsa, H.G. & Lord, Kenneth R. & Putrevu, Sanjay & Kreeger, Jeff, 2015. "Corporate social and environmental responsibility in services: Will consumers pay for it?," Journal of Retailing and Consumer Services, Elsevier, vol. 22(C), pages 250-260.
    • Handle: RePEc:eee:joreco:v:22:y:2015:i:c:p:250-260
    DOI: 10.1016/j.jretconser.2014.08.006
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    14. Yuen, Kum Fai & Thai, Vinh V. & Wong, Yiik Diew, 2018. "An investigation of shippers’ satisfaction and behaviour towards corporate social responsibility in maritime transport," Transportation Research Part A: Policy and Practice, Elsevier, vol. 116(C), pages 275-289.
    15. Fatima Akhtar, 2022. "Big-five Personality Traits and Pro-environmental Investment Specifics from an Emerging Economy," Global Business Review, International Management Institute, vol. 23(2), pages 354-371, April.
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    18. Tian Zeng & Anne‐Françoise Audrain‐Pontevia & Fabien Durif, 2021. "Does corporate social responsibility affect consumer boycotts? A cost–benefit approach," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(2), pages 796-807, March.
    19. Kelly J. Hodgins & Evan D. G. Fraser, 2018. ""We are a business, not a social service agency." Barriers to widening access for low-income shoppers in alternative food market spaces," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 35(1), pages 149-162, March.
    20. Fawad Ali & Maarif Sohail, 2018. "Effects of Corporate Social Responsibility on Consumer Purchase Intention," Pakistan Journal of Humanities and Social Sciences, International Research Alliance for Sustainable Development (iRASD), vol. 6(4), pages :477-491, December.
    21. Yong Liu & Qian Xu & Zhi‐yang Liu, 2020. "A coordination mechanism through value‐added profit distribution in a supply chain considering corporate social responsibility," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(4), pages 586-598, June.
    22. Gleim, Mark R. & McCullough, Heath & Sreen, Naman & Pant, Logan G., 2023. "Is doing right all that matters in sustainability marketing? The role of fit in sustainable marketing strategies," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).

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