Abstract

In this research, we evaluate the response of Brazilian consumers to corporate social responsibility (CSR) initiatives accompanied by a price increase. We demonstrate that the extent to which Brazilian consumers perceive a company to be socially responsible (i.e., their CSR perceptions) is related to both the basic transactional outcome of purchase intentions as well as two relational outcomes: the likelihood to switch to a competitor and to complain about the CSR-based price increase. More interestingly, we find that these relationships are jointly mediated by the consumers’ perceptions of price fairness and feelings of personal satisfaction. Perhaps most interesting, we find that these mediating effects vary with consumer purchasing power; the mediating effect of price fairness on purchase intention is stronger for lower income than for higher income consumers, whereas the mediating effects of personal satisfaction on switching and complaining intentions are stronger for higher income than for lower income consumers.