Can Brand Activism Benefit Luxury Brands?

ABSTRACT Brands are increasingly taking an active stance on divisive socio‐political issues such as racial justice, transgender rights, gun control, and international conflicts (e.g., the Ukraine‐Russia war). Due to its polarizing nature, brand activism can be a risky strategy, and it is not yet understood how consumers react to brand activism conducted by luxury firms. We propose that activism by luxury brands can act as a novel form of marketing communication that leads to favorable brand outcomes. In four studies (and one pre‐test), we demonstrate the positive effect of luxury activism on consumer purchase intentions and brand evaluations. The effect, to an important extent, is driven by self‐expressive value perception, which enhances the brand's luxury perception, resulting in enhanced purchase intentions. We validate the proposed framework by examining various activism topics (the Ukraine‐Russia war, abortion rights, the “Black Lives Matter” movement). The findings further demonstrate that the effect of brand activism is contingent upon consumer political identity. Specifically, this effect holds for liberal consumers but not for conservative consumers due to the symbolic benefits the former derive from activism, which can manifest in higher purchase intentions.