Endorsing sustainable luxury: How environmental and social engagements activate distinct inward- and outward-oriented consumer responses

In response to rising consumer expectations, the luxury sector is increasingly urged to demonstrate its contribution to sustainable development. Yet, consumer reactions to luxury brands' engagement are not uniform, as some sustainable practices strengthen the relationship with the brand, while others trigger concerns about brand dilution and consumer benefits. This paradox raises important questions regarding the types of sustainable causes luxury brands should support and the most effective ways to communicate their initiatives. Drawing on an experimental design comparing environmental versus social causes and testing the presence versus absence of celebrity endorsement, this study investigates how different forms of sustainable engagement in the luxury sector influence consumer responses. Results show that celebrity endorsement enhances consumer responses but is no longer necessary to reconcile luxury and sustainability values. Furthermore, two distinct psychological pathways emerge. Environmental causes supported by luxury brands primarily activate an inward-oriented response route: perceived brand-cause fit strengthens brand attachment, which subsequently increases consumers' willingness to pay. Conversely, social causes activate an outward-oriented route, whereby brand-cause fit stimulates advocacy intentions that ultimately translate into greater willingness to pay a premium price. These two distinct psychological pathways advance the literature on sustainable luxury, which has so far largely treated sustainability engagement as a homogeneous activity. The findings also refine our understanding of the role of celebrity endorsement in sustainable luxury communication and provide managerial insights regarding the strategic management and communication of sustainable engagement of luxury brands.