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Purpose and profit: Understanding consumer reactions to social enterprises in retail and services

Author

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  • Althuizen, Niek
  • Sánchez Sánchez, Carlos Raúl
  • Osburg, Victoria-Sophie
  • Batt, Verena
  • Falter, Mareike

Abstract

Social enterprises have gained increasing attention in retail and consumer services due to their dual commitment to social impact (purpose) and financial sustainability (profit). Like any business venture, social enterprises need consumers in order to exist and survive. However, research on how consumers perceive and respond to social enterprises remains scarce. This article presents three experimental studies from retail and service-oriented contexts, which demonstrate that consumers exhibit more favorable behavioral intentions towards social enterprises as compared to for-profit organizations and for-profit companies with corporate social responsibility (CSR) initiatives. This effect was most pronounced among consumers with strong ethical values and motives. The findings showed that consumers perceive social enterprises as warmer, more moral, and – importantly – equally competent as for-profit companies, which enhances their affective responses and, ultimately, their behavioral intentions. These insights contribute to the literature on consumer reactions to alternative business models and offer managerial implications for retail and consumer services.

Suggested Citation

  • Althuizen, Niek & Sánchez Sánchez, Carlos Raúl & Osburg, Victoria-Sophie & Batt, Verena & Falter, Mareike, 2026. "Purpose and profit: Understanding consumer reactions to social enterprises in retail and services," Journal of Retailing and Consumer Services, Elsevier, vol. 88(C).
    • Handle: RePEc:eee:joreco:v:88:y:2026:i:c:s0969698925003157
    DOI: 10.1016/j.jretconser.2025.104536
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    References listed on IDEAS

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