Moral Licensing in Luxury: Why Prosocial Brand Image Outshines Coolness in Cause‐Related Marketing

ABSTRACT This research examines how cause‐related marketing (CM) shapes consumer responses to luxury brands. We focus on the roles of CM‐driven prosocial brand image and brand coolness as parallel mediators in reducing guilt and enhancing purchase intentions. Drawing on moral licensing theory and costly signaling theory, two experimental studies were conducted: Study 1 employed real luxury brands and product types (regular vs. CM‐aligned products), and Study 2 used fictitious luxury brands across different consumption contexts (experiential vs. product purchase). Across both studies, CM enhanced prosocial brand image, which significantly reduced guilt and, in turn, increased purchase intention. In contrast, CM‐driven brand coolness did not mediate these effects. These results suggest that moral rather than hedonic mechanisms serve as the central psychological processes underlying the positive impact of luxury brands' CM on consumer responses. The findings further reveal a moral halo effect, whereby company‐level CM enhanced prosocial brand perceptions and reduced guilt even for regular products not directly linked to a cause. Overall, this research clarifies how CM helps luxury brands reconcile indulgence with altruism by legitimizing luxury purchases through moral justification, offering actionable guidance for designing strategically aligned prosocial initiatives.