Does it pay to polarise? The impact of brand activism on brand perceptions and purchase intentions in entrepreneurial marketing

Abstract

As consumers are showing an increasing awareness of societal and environmental issues, corporate social responsibility (CSR) has long become standard in marketing communications. Thus, it is no longer suitable for building a distinctive brand image. In this context, the concept of brand activism, in which brands take a bold stand on political issues, has gained prominence. Based on theoretical considerations, it can be assumed that brand activism is a promising approach, particularly for companies with a small market share, such as start-ups. Furthermore, as brand activism polarises, it can be expected that consumers’ perceived self-congruence with a brand is a prerequisite for its successful implementation. Against this background, this paper describes an online experiment to study the effects of CSR and brand activism in an entrepreneurial context. The results show that CSR and brand activism have a positive effect on brand perceptions, although purchase intentions are not found to be significantly influenced by either approach. Furthermore, no significant differences between CSR and brand activism could be found. Finally, the results indicate significant positive effects of self-congruence on brand perceptions and purchase intentions. This study shows the potential value of brand activism for start-ups while illustrating the importance of a careful analysis of stakeholders’ values to prevent negative effects on brand equity.