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Philanthropy as a Means for Improving Brand Value in The Luxury World: A Case of LVMH

Moet Hennessy Louis Vuitton.

Author’s Name

University

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Abstract

The luxury industry is known for the supply of expensive and valuable commodities. The industry is relevant to the economy since it is one of the leaders in annual revenue proceeds. The luxury industrial operation is beyond the normal aspect of value for money. Instead, it is the kind of industry driven by emotional judgement, affluence and loyalty. Therefore, most of the firms within the industry are shifting their focus towards marketing and brand perfectness to be sustainable in the future. To maintain the extended concept of luxury, most players in the industry have begun to be more conscious of their surrounding their employees and their local communities by engaging in philanthropy. However, the depth of philanthropic involvement in the 21st is more focused on building brands by creating an impression of responsibility. This research, therefore, analysed why CSR is more of a marketing tool than a duty by investigating how philanthropy has a significant impact on the brand value of a luxury brand. We met these research objectives using a grounded research theory. More specifically, the theoretical model was built using imputes from interviews with representatives from Louis Vuitton house as a case sample luxury firm which is a component of the LVMH conglomerate, a well-known luxury brand. The results from the research suggest that a fundamental effect of philanthropy is that it portrays a firm as socially responsible thus encouraging loyalty which directly translates into revenue. However, any luxury firm participating in philanthropy is not guaranteed of a valuable benefit. The value gain is dependent on the competency of the philanthropy organisation. Thus it is essential that luxury companies consider an effective CSR implementation to develop their brand value further. Besides, luxury firms are the value drivers of their brand and have to take part in more helpful exercises for a competitive advantage.

Keywords: Philanthropy, brand value, CSR competence

Table of Content

Abstract............................................................................................................................................2

Table of Content..............................................................................................................................3

List of Figures..................................................................................................................................6

List of Abbreviations.......................................................................................................................7

CHAPTER 1....................................................................................................................................8

1.0 Introduction............................................................................................................................8

Background of The Study............................................................................................................9

1.2 Purpose of The Study...........................................................................................................12

1.3 Research Aim and Objectives..............................................................................................13

1.4 Research Questions..............................................................................................................14

LITERATURE REVIEW..............................................................................................................16

2.1 Empirical Analysis...............................................................................................................16

2.2.1. Consumer Perception of the Brand (Brand Experiences)...............................................16

2.1.2 Brand Value and luxury....................................................................................................17

2.2 Theoretical Framework........................................................................................................20

2.2.1 Social Exchange Theory....................................................................................................20

2.2.2 Stakeholders Theory......................................................................................................22

2.3 Research Gap.......................................................................................................................23

2.4 Hypothesis Development.....................................................................................................24

CHAPTER 3..................................................................................................................................26

RESEARCH METHODOLOGY..................................................................................................26

3.0 Introduction..........................................................................................................................26

3.1 Research Design...................................................................................................................26

3.1.1 Research Philosophy:....................................................................................................27

3.1.2 Research Approaches....................................................................................................28

3.1.3 Research Strategy..........................................................................................................28

3.1.4 Choice of Method of Data Collection...........................................................................29

3.1.5 Time Horizons...............................................................................................................29

3.1.6 Techniques and Procedures...........................................................................................30

3.2 Sampling..............................................................................................................................32

3.2.1 Sampling Strategies.......................................................................................................32

3.3 Validity and Reliability........................................................................................................33

3.4 Ethical Consideration...........................................................................................................34

CHAPTER 4..................................................................................................................................35

FINDINGS AND DATA ANALYSIS..........................................................................................35

4.0 Introduction..........................................................................................................................35

4.1 Findings................................................................................................................................35

4.1.1 The Emergence of Concepts from Codes Studied in Louis Vuitton.................................37

4.2 Discussion and Analysis of Findings...................................................................................38

4.3 Emerging Theory.................................................................................................................41

4.4 Limitations To The Study....................................................................................................42

CHAPTER 5..................................................................................................................................44

CONCLUSION..............................................................................................................................44

5.0 Introduction..........................................................................................................................44

5.1 Overal Outcomes of The Study............................................................................................44

5.2 Contributions Of this Study............................................................................................45

5.3 Future Research Recommendations.....................................................................................46

5.3.1 Theoretical Investigation...............................................................................................46

5.3.2 Evaluation......................................................................................................................46

5.3.3 Extension of The Similarity Framework.......................................................................46

Reference.......................................................................................................................................47

Appendices....................................................................................................................................51

List of Figures

Figure 2.1 Brand value and firm competency...............................................................................15

Figure 3.1: Saunder et al.’s onion model.......................................................................................21

Figure 3.2 Data collection and analysis process............................................................................24

Figure 4.1: Codes of key points ....................................................................................................32

Figure 4.3: A representation of emergent theory ..........................................................................37

List of Abbreviations

CSR Corporate Social Responsibility

LV Louis Vuitton

LVMH Moet Hennessy Louis Vuitton SE

UNICEF United Nations International Children’s Emergency Fund

CHAPTER 1

INTRODUCTION

1.0 Introduction

From the 1960’s there arose an exceptional need for ethical acts in businesses since most

businesses dealt with unsafe products, polluted the environment, engaged in corruption in pursuit

of enormous profits and power rather than the welfare of employees, customers, and other

stakeholders. However, state regulations are now forcing businesses to limit their harmful

activities to the environment and the society. Besides, the increased value placed by potential

customers and other stakeholders on organisations taking part in CSR has also profoundly

contributed to social development initiatives. Corporate Philanthropy is important for the long-

term sustainability and success of any business (Gonzales, 2017). Therefore, all organisations

today regardless of the industry they operate in have to be progressively careful with the impact

that their internal and external practices have on the society. This is because the current society is

aware of their rights and position. They are highly exposed to a myriad of information (Melo,

2009).

What Is Corporate Philanthropy?

There is no single definition of corporate (Barnes, 2011). However, corporate

philanthropy can be regarded as the continuous commitment by businesses to behave ethically

and contribute to the economic development of the locals while at the same time improving the

quality of life of the workforce and their families (Long, 2012). The most common CSR

activities taken up by companies include charity, response to social disclosure, response to

environmental issues, diversity in the workforce and involvement in the local communities.

There are various synonyms of corporate philanthropy like Corporate social responsibility(CSR),

corporate social behaviour, organizational social responsiveness and social voluntarism

(Pomering & Dolnicar, 2009).

Background of the Study

From some investors’ perspective, philanthropy is a critical business strategy. According

to Zaczkiewicz (2016), the asset value of companies engaging in CSR activities has grown from

about $ 1 trillion in 1997 to around $ 7 trillion currently. Citing from the forum of sustainable

and responsible investment, Zaczkiewicz, (2016) further mentions that stakeholders, mainly

customers have played a critical role of encouraging companies in the luxury world to engage in

philanthropic activities due to the demand they place on the company and their overall

expectations.

Luxury is defined differently by different people. Regardless of the subjectivity in its

definition, luxury is still associated with class and prestige (Gonzales, 2017). However, luxury

brands are becoming more accessible and familiar causing the general characteristics of

uniqueness and exclusivity to reduce (Anon., 2018). Authenticity, legitimacy, reliability, and

superiority are the essential differentiating characteristics of goods in the luxury world and are

therefore value drivers in the luxury world. The world has witnessed a drop in the general

consumption of luxury goods since 2009. The most substantial decrease was noticed in 2016 (Bu

et al., 2018). Therefore, attention in the luxury industry is now focused on maintaining brand

value. Luxury can be categorised based on various aspects and approaches like how others

perceive the luxury, the country of manufacture, and the people involved, the way of

manufacture and selling among others. These classifications are mainly summarised into

physical and psychological attributes. Consumers and the industry depend more on the

psychological qualities more than the physical ones (Gonzales, 2017).

Why Do Organisations Give?

Charity in a non-profitable course that uses a significant amount of profits from a

company. However, in some cases, goods or services produced by a corporation can be of value

to the beneficiaries of a charity. Business involvement with philanthropic organizations for

public purposes has been researched widely. Sargeant and Shang (2017) for instance explain

fundraising in the contemporary world to show how a business’ involvement with non-profits

helps the business become a viable economic entity while also producing social well being.

According to Sargeant and Shang (2017) many small businesses take part in charitable giving in

the best manageable capacity. However, the underlying reasons behind giving is not only to get

rid of the excess inventory and free up warehouse space, but also to earn the hefty tax deduction

advantage, for public relations (PR), to earn their loyalty to a businesses and to ensure a

competitive edge.

The primary motive behind corporate social responsibility in the luxury industry is

marketing. Although there is no harm in making money out of philanthropy, this motive has only

resulted in the partial implementation of philanthropic activities. Organisations dealing in luxury

brands typically work with the mindset of maximising profits for shareholders above anything

else. (corporate social responsibility online, 2018). This idea is firmly backed up by

Zaczkiewicz, 2016), who mentions that bringing CSR activities into the marketing and corporate

identity improves the overall image of the industry as well as developing the relationship

between the organisation and its stakeholders. Such firms are viewed as more responsible firms.

However, the danger of this motive is that CSR could only be used to gain a competitive

advantage while brainwashing the primary purpose of CSR.

Many studies have reported on contextual factors affecting corporate social responsibility

among firms while relying on theories and studies mainly in the west. However, as Montesa and

Rohrbeck (2015) mention, sustainability course is becoming more relevant in the luxury world.

Luxury companies, therefore, must heed the call of providing tools and environment that

facilitate responsible practices.

This study explores LVMH Moet Hennessy Louis Vuitton SE in the luxury world as a

sample case company. The main reason for choosing Louis Vuitton is due to the company's

primary interest in philanthropic actions, its accessibility and the fact that it is the world’s leader

in luxury (Deloitte 2017). LVMH's great interest in philanthropy is evidenced through the yearly

independent Corporate responsibility reports and some activities listed on their website. Since its

creation in 1987, the company has shown a business model that is characterised by dynamic

growth. LVMH comprises of 70 houses producing exceptionally high-quality products in the five

major luxury markets: wines and spirits, Fashion and leather goods, Perfumes and cosmetics, as

well as watches and jewellery. Some of the philanthropic activities LVMH engages in include

ensuring the well being of workers, promoting talent and skills, preventing discrimination and

supporting local communities. For instance, in 2013, LVMH created the LVMH Rise program to

develop leadership styles among young leaders. The program cuts across New York, Rome,

Bulgari, Tokyo among other cities (LVMH, 2017). LVMH also developed a Handi-talents

program which is a recruitment program that helped in placing disabled applicants to work

(LVMH, 2017). The company also opened up networks in 2010 for the young people living in

rural areas of Paris by welcoming them into the company as interns and seniors. One of the

primary principles that LVMH operates on is that it ensures all the houses are responsive and

autonomous. This is one of the guiding principles that motivate the company's philanthropic

exercises (LVMH, 2018). LVMH also makes numerous contribution towards non-profit courses

like Save the Children and UNICEF.

LVMH is one of the many luxury brands that firmly believe in philanthropic initiatives as

a way of giving back to the society. The LVMH group CSR philosophy reads:

We believe that philosophy initiatives in support of those most in need constitute a fitting

way to give back to a society that has enabled our group to thrive” (LVMH, 2018).

This initiative began as early as 1991 by Bernard Arnault, the company’s CEO, for the

improvement of LVMH's corporate image and strategic group development. The LVMH social

responsibility report (2014) indicates that the fundamental principle behind LVMH ‘s corporate

responsibility projects is the respect for people. According to the group executive vice president,

the LVMH creations could not exist in the first place without remarkable men and women who

work hard. Therefore the group’s commitment towards social responsibility means respecting

such people's individuality, developing and transmitting savoir-faire and identification of talents

that share the company's quest or excellence (LVMH, 2017).

The CEO’s dream for LVMH is to place the brand on a global map through CSR. UNGC

has monitored LVMH’s CSR initiative since 2003. Once LVMH became a participant in

UNGC’s social responsibility reporting program, the group’s brand value performance improved

considerably. It increased from EUR 5.6 billion in 2004 to 13.8 billion in 2005- a 146% rise

(Interbrand, 2017). Accordingly, the company's management noted the impact of making the

group's CSR effort more publicly visible on LVMH's brand value. After joining UNGC, they

declared in the LVMH annual report of 2003 that brand image enhancement was a key pillar of

LVMH’s economic performance. They argued,

“[LVMH’s brand]image is an estimable and irreplaceable asset and … each message

must be worthy of the brand” (LVMH, 2004).

Their standpoint showed that they acknowledged the marketing potential of reporting CSR

endeavours. Still, research offers controversial perspectives on philanthropy as a way for luxury

brands to enhance their financial performance.

1.2 Purpose of the Study

Having a brand is more than just a name, slogan or reputation (Guzman & Davis, 2017).

A brand encompasses the entire business including how the organisation conducts itself

regarding philanthropy (Melo, 2009). This directly influences customer perception towards the

business (Nikolova & Arsic, 2017). Brand values are the foundations on which a brand is built

in. Customers are keen and will always want to know what a business stands for and the position

a company takes in addressing matters affecting the society particularly through CSR. Besides

customers only choose to support a course that is important to them. They are attracted to

quality, understanding, integrity, and consistency (Long, 2012). The luxury industry is

competitive. Therefore, luxury firms have to consider how they can win over customers or make

them have the will to pay more for their brands through the image and qualities they portray by

engaging in CSR activities. This study is therefore important for managers in the luxury world

for formulating a proper CSR strategy that is essential for promoting the brand value. The study

provides knowledge to manages and decision makers in the luxury world on how to create a

positive image that will leave lasting impressions on the customers' mind by defining their brand

identity. Moreover, this research will help academicians in conducting follow-up researches as it

will act as a basis for further development of the phenomenon discussed in this study on specific

luxury brands.

1.3 Research Aim and Objectives

A lot of resources and time are used up in philanthropy. The course is generally expensive as

it does not generate immediate profits for the company. However, Philanthropy, of any kind, is

not only the right thing to do but can make a particular brand stand out if done correctly. This is

because philanthropic activities strengthen the culture of the companies and attract various

customers. For efficiency, CSR initiatives must be connected to the company's brand. A brand is

a unique identifier of the company. It is a way a company tells its story. However, linking up a

philanthropic activity to the company's objectives, mission and vision is not easy. For instance,

giving to the community as one approach to philanthropy may not directly provide an authentic

connection that matters to employees, customers, other stakeholders, because there are no

quantifiable bottom-line benefits. This raises the question of how then can a company know if its

philanthropic activities are adding value to the company? Therefore, this study aims to

investigate the connection between charitable activities and the brand value of luxury brands.

Using Louis Vuitton as the leading luxury goods company and as a benchmark for responsible

citizenship in the corporate world, this study generated empirical evidence from primary sources.

To achieve the main aim of the study, this research was based on the following objectives.

1. To identify the CSR practices adopted by companies in the luxury world

2. To analyse the impact of CSR on corporate brand value building

3. To study and compare the financial aspects related to the brand before and after the

organisation embraces CSR practices.

4. To compare and analyse different executives, workers, and customers' perception of

brand building and CSR.

5. To analyse various CSR concerns from both the executives and the customers.

1.4 Research Questions

Charitable actions have an impact on the brand value and the customers' perceptions of the

luxury brand. This study examined the influence of luxury companies philanthropy using the

following research questions.

1. To what extent has CSR been implemented in Louis Vuitton?

2. Does corporate philanthropy play a role in LVMH's brand performance

3. Do Louis Vuitton‘s donations influence people's regard for the company as a socially

responsible firm?

4. Does Louis Vuitton‘s corporate philanthropy affect customers’ purchasing decisions for

luxury brands?

CHAPTER 2

LITERATURE REVIEW

2.0 Introduction

CSR affects the organisation's brand value and the customer perception. This section

reviews the literature on three main parts. The first section of the literature review gives an

overall evaluation of the literature on past studies concerning the significant variable of this

study. The second part discusses a theoretical framework on corporate philanthropy and the

customer’s perspective on the brand value. The last section identifies the research gap basing on

the previously done researches and models.

2.1 Empirical Analysis

2.2.1. Consumer Perception of the Brand (Brand Experiences)

Many scholars have widely researched the concept of consumer value perception on CSR

beyond the face value benefits. Particular research conducted by Barnes (2011), confirmed that

corporate social responsibility has a direct impact on the consumer’s purchasing behaviour. The

analysis empirically measured CSR using Turker's scale and a brand trust scale developed by

Delgado Ballester and Muura-Aleman. Barnes (2011) found out that legal, employee, ethics and

economic issues are the major components that represent CSR and have a direct effect on brand

trust. However, this research was limited since it does not explain explicitly about CSR and the

consumer-based brand relationship.

A separate study by Keller (1993) formed a model of customer-based brand value. From this

model, Keller (1993) conclusively mentions that the two major components of customer-based

brand value our brand image and brand awareness. Keller’s research (1993) was limited to

advising managers on developing the brand strategy but overlooked some areas where the

managerial guidance is necessary when making these decisions. For instance, Keller (1993) only

mentions that managers have a responsibility of ensuring a perfect CSR activity for a suitable

brand value but does not directly explain what managers need to do to improve their brand value.

However, separate research done by Salmones et al. (2005) came up with a different finding.

Salmone et al. 's study (2005) concluded that the only effect CSR has on customers loyalty is

indirectly through service valuation. Their research reveals that consumers not only buy products

and services but instead want to experience what is being sold. These views acknowledge that

consumers are information processors to a more holistic perspective who take into consideration

both the coherent and emotional facet. On the other hand, contrary research by Pomering and

Dolcinar(2009) reported that CSR activities have little or no influence on consumer perception

on any brand since the majority of the consumers are not aware of the CSR methods in use by

organisations despite the organisation's effort to communicate CSR initiatives to the public.

This dissertation further develops Salmone et al. 's study (2005) by analysing how consumers

process philanthropy and decide to stick to or purchase a luxury brand regardless of the prices.

Moreover, this study suggests more considerations in managerial decision making on matters of

CSR that were previously overlooked by Keller (1993). These competencies are the critical

determinants of the brand value through CSR.

2.1.2 Brand Value and luxury

Numerous studies have revealed that there is a direct connection between CSR and brand

value in the luxury industry. One research by Singh and Verma (2017) confirms that there is a

direct relationship between CSR initiatives and brand value. Using a structural equation

modelling (SEM) to test the hypothesis, the study found out that CSR initiatives mediate effects

of enhanced brand image and brand loyalty. The luxury brand is empowered in different ways

especially when firms take part in ethical CSR initiatives that preserve the environment. Singh

and Verma's study (2017) was however limited to a developing economy and majorly focused on

the Indian business perspective.

The sentiment on the positive relationship between CSR and brand value is strongly

supported by Petit (2018) who mentions that CSR initiatives like environmental conservation,

sourcing local materials and maintenance of good working conditions are the key drivers of

luxury brand value. According to her, customers subscribe more to these visible initiatives and

choose to buy products thus building the market share. Moreover, these philanthropic initiatives

contribute to the brand value by mitigating risks in the supply chain.

Gonzales (2017) also narrowed down the CSR aspect to the luxury world. According to him,

brand value is the most significant asset in the luxury world. However, CSR is not an area of

vital interest in the luxury industry since most consumers are not actively demanding more from

luxury firms. Depending on how it is managed, CSR can either build or ruin a brand of any

luxury company. He argued that CSR initiatives not only drive consumer demand but also result

in a competitive advantage which has a direct potential impact on the luxury brand value. A

similar study by Han, Mahmood, and Khan, (2016) also found out from a sample of over 300

customers of a luxury brand that there is a direct relationship between CSR and the purchasing

intentions of customers. However, they had an additional opinion as according to them, the plan

to purchase depends on the individual customer. According to Han, Mahmood, and Khan,

(2016), affluent customers who have an internal value expressive perception show the most

significant intention to purchase luxury brands. Such consumers also pay more attention to CSR

compared to external value expressive consumers. Yoo’s study (2017) gives a supportive opinion

on the circumstances under which CSR can effectively build a luxury brand. According to Yoo

(2017), brand value impact is measured both qualitatively and quantitatively. According to Yoo

(2017), effective CSR encompasses an alliance and reinforcement between social, environmental

and social performances of any luxury company.

A separate study by Guzman and Davis, (2017) concluded that a firm could formulate a

brand win for a luxury firm if it invests in a strategic CSR initiative approach. For instance,

meanings associated with some luxury brands may directly conflict with the impression revealed

by the CSR initiative. This, therefore, may reduce the value consumers attribute to the brand.

According to Sargeant and Jay (2004), charitable initiatives are known to be apealling for seven

main reasons. Part of these reasons have an impact on how consumers view an organisation.

First,the CSR initiative has to ensure utmost customer satisfaction. Second, it has to share in the

organisational beliefs. Third, the charitable exercise has to build the client’s trust through an

enhanced level of customer satisfaction. Fourth, it has to involving multiple engagements. Fifth,

the initiative has to take the beneficiaries on a journey of transformation. Lastly the initiative has

to be transparent and to allow the customers to know their consequences. Apart from Seargent’s

specific requirements in philanthropy, Long (2012) further mentions that situations, where CSR

backfires for the luxury brand, are mainly due to a miscommunication of CSR policies to

consumers. Long (2012) therefore advises that any brand can benefit from CSR initiatives.

However, CSR activity has to be consistent with the particular brands valued by consumers.

Moreover, brand, managers of luxury firms should be keen when passing messages about their

brand by first, differentiating the brand through other factors other than CSR. Second, attributing

their CSR activities to more suitable brands.

Despite the importance of brand value within the luxury world, according to a research done

by Gonzales R. B.( 2017), brand value is not widely understood by the luxury industry and

therefore it is not well managed and leveraged by key players in the industry. This study

develops Singh and Verma's research (2017) as it focuses on a worldwide perspective in a luxury

business environment. Furthermore, this study focuses on how luxury firms can further develop

their brand value through their choice of philanthropic exercise as earlier researched by Guzman

& Davis, (2017); Yoo (2017) and Gonzales (2017).

2.2 Theoretical Framework

2.2.1 Social Exchange Theory

Social exchange theory proposes that social behaviour is a consequence of an exchange

process that aims at maximising benefits and minimising costs (Jones, 2010). According to the

theory, customers usually weigh between the potential benefits and risks before engaging

themselves in any relationship. In case the risks are more than the benefit, there are higher

chances of terminating the relationship. Therefore, customer loyalty to a particular brand is

dependant on rewards they expect to receive. The social exchange theory views value as

something critical but dependant on power and justice for a continuous exchange of activities

between two parties (Jones, 2010).

Brand value is an antecedent of trust and commitment (Jones, 2010). According to

Popoli (2011), CSR initiatives invite a reciprocal exchange. Therefore reciprocity is at the centre

of the relationship between the company and the clients (Aguilera et al., 2007). The social

exchange theory describes the psychological and social processes that drive consumers to

purchase luxury goods from a company they perceive to be socially responsible. The company is

at the centre of a network of external relationship with stakeholders. It has a responsibility of

satisfying the expectations of the stakeholders through the correct choice of philanthropy like

conserving the environment, sponsorships and providing a conducive working environment. In

exchange the company earns trust. The trust directly translates into acceptance of a company's

luxury products (Jones, 2010).

From a strategic brand value management perspective, the value of a brand is as a result

of a company management’s competencies in selecting the most appropriate CSR initiatives that

directly translate into a successful brand image, brand identity and brand awareness among the

stakeholders, particularly customers. This implies that the level of commitment by customers to a

particular luxury brand will depend on the quality if CSR benefits they receive. The figure below

illustrates how well planned values, competencies, and strategies before the execution of any

CSR practice can directly impact the brand image which consequently affects the brand value

only if the customers are satisfied with the CSR effort. This gives a company a competitive

advantage resulting in maximum profits.

Company Values CSR strategy CSR team competency

Corporate social Responsibility exercise

Brand identity Brand Image Brand awareness

Brand value

Figure 2.1 brand value and firm competency

.2.2.2 Stakeholders Theory

Edward Freeman first developed stakeholder theory in 1984 is the publication, Strategic

Management-A Stakeholder's Approach (Nikolova & Arsic, 2017). Stakeholder theory holds

that a company's stakeholders are those people whose support is fundamental to the existence of

the organisation. They include customers, suppliers, employees, political action groups, media,

suppliers, financial groups and governmental institutions (Popoli, 2011). The corporate

environment has to be satisfied to keep the company healthy (Gonzales, 2017). According to

Freeman, getting the stakeholders to swim in one direction gives the company some momentum

and real power (Lankoski et al., n.d.). Therefore, the company’s real success in its brand value

lies in satisfying the stakeholders. A company, thus, should never lose sight of anyone involved

in its success. If it treats people poorly, the ultimate effect may be a drastic downfall.

Stakeholder’s theory is even more relevant in the current luxury business model since

responsibility by a company shapes its value perception by stakeholders in the industry. So then

what is value for stakeholders regarding CSR? Craig McDonald further developed the

stakeholder’s theory while paying attention to CSR. McDonald’s view is simple if a company

competitive advantage

profits

values its brand, it has to act in such a way that they express their CSR activities while focusing

on initiatives and outcomes that make everyone happy.

Companies have a responsibility of documenting their activities and their contribution to

the environment for two main reasons. First, to broaden the customers' view on the brand

relationship and second, for customers to place a value on the customer-company relationship.

Therefore, brand value is more connected to the performance of the organisation.

Customers make a judgment on value based on particular CSR initiatives the organisation

takes part in. According to Lankoski, et al.,( n.d.), This judgment of value triggers customers’

reaction and the customer may either choose to purchase a brand or be loyal to that particular

brand (Gonzales, 2017). The relationship between corporate social responsibility and

stakeholders can also be examined from a perspective of organizational social performance

(Nikolova & Arsic, 2017). Therefore, the management is responsible for making strategic CSR

decisions which largely shape the brand image to the customers and other stakeholders.

From stakeholder's theory, systematic attention to the interest of customers is therefore

fundamental. Luxury firms, therefore, have to operate while bearing in mind that any CSR

decision they make affects the interests of the customers (Melo, 2009). Hence it logical for every

firm in the luxury world to take advantage of this relationship and only take part in CSR

initiatives that maximise brand value.

2.3 Research Gap

Most of the arguments and studies have been done on brand value and corporate social

responsibility. However, most researches have been done from a company level perspective

rather than an industry level perspective (Gonzales 2017). Exploring the effect of CSR in a single

firm hinders the relevance of the research concerning practical application. Therefore this

research takes a more inclusive approach to the exploration of CSR and brand value in a luxury

industry setup. Moreover, very little research has been done on the measure of brand value since

most researches base their analysis from a theoretical perspective rather than a practical analysis

(Long, 2012). By using philanthropy as a determinant of brand value with an integrative

connection to the customer's decision to purchase luxury brands at any cost, this study addresses

a crucial question on whether CSR initiatives are worth undertaking for any luxury firm. This

research builds on previous studies done by others on the impact of CSR on brand value while

analysing Louis Vuitton as a selected LVMH outlet. This research reports on the position of

LVMH’s brand value as one of the well-known luxury brand. This paper also reports the effects

of some commonly done practices in CSR by luxury firms on the brand value as a means of

improving the competitive advantage of the firms.

2.4 Hypothesis Development

The previous subsections analysed the existing empirical evidence and theory that are

connected to the relationship between CSR and brand value. These subsections form the basis for

the development of hypothesis for this dissertation. This subsection elaborates on the different

hypothesis.

The customer’s association with a particular brand is known as the brand image. Brand

image affects both the objective and subjective dimensions of customer perception of a brand.

Brand image is positively affected by CSR (Petit, 2018). As mentioned before in the social

exchange theory, as long as the organisation shows a socially responsible behaviour, customers

will reciprocate with activities that are beneficial for any luxury brand. This is because it creates

a positive attitude towards the company and the products. Customers view a firm that engages in

philanthropy as a socially responsible firm. Therefore, it can be hypothesised that:

HI: CSR initiative has a significant positive impact on the customers’ value on a luxury brand.

Brand image and brand loyalty are the critical determinants of brand value (Montesa &

Rohrbeck, 2015). When the company shows efforts in CSR activities, the company makes their

brand more reliable and memorable and quickly noticed by new consumers which consequently

affects the brand value. Therefore, it can be hypothesised that:

H2: Brand image has a significant positive impact on the brand value

As mentioned earlier by Guzman & Davis, (2017); Yoo (2017) and Gonzales (2017),

corporate social responsibility drives brand value only if it is carefully done. Thus, CSR is being

referred to as a management strategy since it is the responsibility of any company’s management

to make sure that it makes a positive impact on the society. According to Guzman and Davis

(2017), companies have to dedicate departments and competent personnel to take care of the

matters that relate to social responsibility. It can, therefore, be hypothesised that:

H3: A company’s competency in CSR strategy has a positive impact on brand value.

CHAPTER 3

RESEARCH METHODOLOGY

3.0 Introduction

This research used the grounded theory methodology to investigate social processes and

actions facilitated by philanthropy. Louis Vuitton was chosen as the research object of studying

the relationship between brand value and CSR from both the company's perspective and the

consumers’ perspective. Louis Vuitton is one of the outlets of LVMH, the leading luxury brand

in the world (LVMH, 2018). In the past years, LVMH had had an extension of houses all over

the world. Therefore, it is easier to collect data (LVMH, 2017). Besides, LVMH has taken part in

numerous CSR initiatives, and it is regarded as a more socially responsible brand (LVMH,

2017).

3.1 Research Design

The research design is a building plan for the research project (Saunders et al., 2009. This

research used the concept of a research process suggested by Saunders et al., (2009) as illustrated

in figure 3.1.

;

Figure 3.1: Saunders et al.’s onion model (Source: Junid,2006))

3.1.1 Research Philosophy

According to Saunders et al., (2009), the research strategy and methods depend on some

underlying assumptions. The researcher in this study maintained that the external reality

comprised of facts that would provide the theoretical framework of this study. Moreover, the

researcher allowed the theory to emerge from the data. The researcher posed open questions

while assuming that he knew very little about the state of the LVMH group (Birks & Mills,

2011). The researcher's primary aim was to learn from the participants how LVMH group's

philanthropic exercises change their perception towards their products

3.1.2 Research Approaches

There are two types of research processes, the inductive and deductive processes

(Saunders et al., 2009. This research, however, used the inductive approach where the researcher

first developed a theory from the data collected. (Saunders et al., 2009). The inductive approach

involves the search for patterns from the interview responses. This data will continuously and

extensively be analysed multiple times until a new theory emerges (Brown et al., 2002). The

essence of using an inductive approach in this research is because the major aim of this study is

to explore new phenomena of CSR and brand value from a different perspective from what has

been researched earlier. (Yoo, 2017)

3.1.3 Research Strategy

Saunders et al., 2009 defines a research strategy as the path towards the achievement of

the research’s goals by answering the research questions. This research adopted the grounded

theory research strategy. The essence of using a grounded methodology was to derive a theory

from the systematically gathered and analysed data in the research process (Brown et al., 2002).

Besides, grounded theory comprised of well-signposted procedures that made the whole process

of data collection more straightforward (Lawrence & Tar, 2013). Very little research has been

done on the relationship between brand value and philanthropy in the luxury world. Therefore,

the grounded theory makes the most significant contribution in such an area since many variables

relevant to the concept of brand value in luxury brand are yet to be analysed deeply (Lawrence &

Tar, 2013). Other reasons for using grounded theory methodology is that grounded theory

produces accurate and functional results. Also, it does not ignore or simplify the organisational

context of the case study since all the complexities of the LVMH are well taken care of and are

part of the phenomenon (Brown et al., 2002).

3.1.4 Choice of Method of Data Collection

A researcher can either use one or multiple techniques (Saunders et al., 2009). In this

study, the researcher used a mono-method of data collection, where data was gathered

quantitatively, and quantitative methods of data collection were used as well. Interviews were the

primary instrument of data collection. The interview questions had two parts. The first part

attempted to measure LVMH’s brand image from the customer’s perspective. It contained two

parts; the perceived value from CSR activities and a measure of customer’s satisfaction on CSR

activities conducted by the LVMH (see Appendix D). The second part of the interview questions

entailed Louis Vuitton (Company based) measure of brand value with questions further

subdivided basing on the four major metrics; brand awareness, brand preference, financial

analysis and output analysis. All the questions were semi-structured and open-ended (see

Appendix A).

3.1.4.1 Pilot Testing

To improve the final list of interview questions, the researcher did a pretest to ensure that

these questions answer the objectives of the study as suggested by Lawrence and Tar, (2013). He

planned for a random interview with LVMH clients in LV house. After the pretest, the

researcher used the input to make appropriate changes

3.1.5 Time Horizons

According to Saunders et al., (2009), the time taken for research phenomena is dependent

on the chosen research techniques. There are two possible options, the cross-sectional studies

and the longitudinal studies. This research adopted the longitudinal study option. A longitudinal

study is an overtime study of variables. In this case, the same population of respondents was

investigated repeatedly until the researcher found a relatively stable theory from the findings.

The essence of using longitudinal studies is due to the dynamic nature of brand value effect

which is a major variable in this study (Saunders et al., 2009).

3.1.6 Techniques and Procedures.

This is the innermost layer of Saunders et al. 's research design., (2009). The researcher

developed the hypothesis of this study from the theoretical framework and the empirical studies.

Data collected through grounded research was then used to analyse the hypotheses and the

research questions. The study particularly involved four critical steps to test the effect of

philanthropy in improving the brand value of the LVMH brand. First. The researcher made initial

decisions regarding the specific individuals with the knowledge about the research area. Second,

the researcher analysed the initial data until theoretical ideas and concepts begun to appear.

Third, the researcher had to choose more participants by theoretical ideas revealed. Fourth, the

researcher repeated step two and three until theoretical saturation was arrived at. Theoretical

saturation is the point where the events under investigation are considered to have ended. At this

point, the researchers had nothing new to gather from the participants (Birks & Mills, 2011).

All findings and responses from the interviews were written in transcripts (appendices

A-H). The analysis of data started by coding as many important issues as possible mentioned by

the respondents. The initial codes captured from data from the Louis Vuitton team provided

evidence of the effects of philanthropic activities on the brand value. The coding systems were

developed both individually and through team meetings and discussions. After each interview,

the researcher formulated a memo reflecting on the findings and the interviewers’ reactions.

These memos were then compared after the interviews. Figure 3.2 shows the procedure for the

data collection in grounded theory.

Figure 3.2 data collection and analysis

The study used extensive interviews as the instruments of data collection. However, the

researcher had to move back and forth between data collection and data analysis. After

theoretical sampling, coding began immediately. Coding is the process of naming and labelling

data (Brown et al., 2002). In this case, the researcher established codes for raw data from the

start of the interview process. The codes were then used to redirect further data collection where

the codes were developed by their connections with other codes until saturation point.

At first, the researcher conducted semi-structured interviews with the Louis Vuitton's

employees particularly the CSR team, the marketing team, financial department and the

management to assess the financial measures of the brand's monetary value through five

parameters. They include the market share, price premiums, revenue generated by the brand, the

transaction value of the brand and the rate at which the brand ensures sustainable growth. A

Collect data

Code data

organise data

around concepts

categorize related

concepts

link patterns in categories

develop a model

broader focus on this research required analysis of how LVMH's donations and other CSR

activities influence the peoples' view of the firm. This called for further interviews with the

customers spotted within the Louis Vuitton. The questions were semi-trusted. The research team

again used theoretical sampling to obtain data that would shed light on the influence of people’s

regard for the company. Further interviews were conducted with clients within the Louis Vuitton

store. The number of interviews conducted depended on the saturation point of the data. The

interview questions were formulated to encourage flexibility among interviewees. However,

Rubin and Rubin’s (2005) suggestion was followed where the researcher formulated the main

questions then posed follow-up questions based on the answers given by the interviewees.

3.2 Sampling

Theoretical sampling was used. This is the process of collecting, coding and analysing

data simultaneously to generate a theory (Birks & Mills, 2011). Theoretical sampling was the

best since the research's main goal was to explore and describe the outcomes of philanthropy as a

new real-life practice in LMVH brand. Moreover, grounded theory analysis requires that the

researcher builds theory while collecting more data to build the theory further. When a particular

category appears thin, more data need to be collected in that particular category (Lawrence &

Tar, 2013). Therefore, the theoretical sampling was not fully planned before the process of data

collection commenced.

3.2.1 Sampling Strategies

The researcher chose the participants for the interviews using both a convenience

sampling technique and snowballing technique. The convenience technique was used to select

the customers within the Louis Vuitton (LV) stores without a lot of prior arrangement. The

researcher only talked with clients who came to LV house to shop that day. Convenience

sampling was easy, and it was important in this study because it was cheap, easily available and

time-saving (Lawrence & Tar, 2013). Snowballing sampling was used for the LV house

personnel. The researcher booked appointments with only a few people that he had selected by

himself and was confident they had the right lead towards answering some research questions.

As the interviews progressed, the researcher used their referrals to include more participants into

the research particularly to answer questions not previously answered by the first group of

interviewees. The essence of using snowball sampling is that it is more appropriate for situations

where the researcher wants to discover information that he is not aware of like LV's financial

data. (Lawrence & Tar, 2013)

3.3 Validity and Reliability

According to Straub et al. 2004, validity is the ruling out of different hypothesis, while

ensuring the constructs are real, reliable and the instruments used to measure the right content.

Reliability, on the other hand, refers to the extent to which the data collected reflects the real

nature of the phenomenon being investigated (Brown et al., 2002). The research involved many

assurances of quality during data analysis and data collection as suggested by Sbaraini et al.

(2011). First, the researcher kept a detailed analysis of records. Second, the research activities

were supported by the researchers and assistant through a regular research team meeting to

discuss and contextualise all emerging interpretation

In this study, researchers ensured credibility by a prolonged engagement with the

participants. Interviews were done until saturation points where the researcher felt there was no

additional information to be collected. There was also a thick description and assessment of data

(Morrow, 2005). Interview participant checks ensured that there was a respondent validation of

interview transcripts and all concepts that emerged within the research (Brown et al., 2002). To

ensure a reliable data collection process and findings, the researchers ensured a compared

continuously data and comprehensive use of data in the analysis.

Like other qualitative research approaches, the ground theory is subject to errors like a

misinterpretation of the data which threatens the accuracy of the new theory. To mitigate this

risk, researchers relied on respondents’ validation to confirm the researcher's interpretation of

data. In this case, the researcher returned to the interviewees after the interview to confirm the

accuracy of the individual interview transcripts and confirming that the researcher's

interpretation of the data is a direct representation of what the respondents said.

3.4 Ethical Consideration

Throughout the research, the researcher followed particular codes of conduct to prevent

fabrication and falsification of data. Moreover, the conduct of the researcher ensured

accountability, trust and mutual respect between the researcher and the respondents. The

researchers submitted the research proposal to Louis Vuitton’s institutional review board who

ensured that the safety and human right of the respondents within the organisation was not

violated. All participants in the interview participated voluntarily and were prepared and

informed before the research. They were allowed to withdraw from the study anytime they

wished to. Moreover, the researcher notified the respondents about their responsibility and the

possible risks during the interview processes. The researchers protected the respondents from

any harm and assured them of the utmost security. The privacy of the participants was ensured,

and the researchers were only allowed to give information they were willing and comfortable.

They were also assured of safety. The researchers stuck to the aims and objectives of the study

and ensured that there was no form of deception and exaggeration. All the interview questions

were formulated neutrally, with acceptable language while avoiding any kind of discriminatory

or offensive language.

CHAPTER 4

FINDINGS AND DATA ANALYSIS

4.0 Introduction

The main goal of this study was to use grounded theory to describe the impact of CSR on

luxury brand value. The analysed data resulted in a theory that explained the relationship

between CSR and brand value in the luxury world. This section begins with a discussion of key

findings of the research. It further describes how the key elements that led to the theory are

connected to the study. The focus in this chapter was based on the research questions and

hypothesis. The research questions include:

1. To what extent has CSR been implemented in Louis Vuitton

2. Does corporate philanthropy play a role in LVMH brand performance?

3. Do Louis Vuitton’s donations influence the people’s regard for the company as a socially

responsible firm?

4. Does Louis Vuitton’s corporate philanthropy affect people’s regard for the brand?

4.1 Findings

All the important points to the investigations of this study were identified in the

transcripts. All the key points were denoted using letter P. The key points were further identified

with a suffix lv to show they were collected within Louis Vuitton house. The table below

illustrates codes from the key points that emerged during the interviews.

Code Id Key Point Code

Plv1 The quality of LVMH is better than

other brands

Brand image as a determinant of

brand value

Plv2 LVMH products can be recommended

to anyone


brand value

Plv3 It is important for LVMH (LV) to work

collaboratively with other corporations

to support local Communities

CSR as a determinant of customers

value perception on a luxury brand

Plv4 LV needs to improve in all its CSR

initiatives


value perception on a luxury brand

Plv5 If LV participates in more

philanthropic exercises, clients will

value its products more


value perception of a luxury brand

Plv 6 LV’s CSR initiatives are perfect, and

nothing needs to be changed

CSR as a determinant of customer’s


Plv7 LVMH is the best brand, and anyone

can choose it due to its support for

social responsibility.



Plv8 The CSR initiatives LV engages in a

lead to various social mentions, website

visits and consequently result in more

sales.

competency in CSR as a determinant

of luxury brand value

Plv9 Customers are willing to pay more for

LVMH products


value perception on brand value

Plv10 There are no complaints about the CSR Competency in CSR as a determinant

activities LV participates in. of luxury brand value

Plv11 LV’s sustainable growth, market share,

revenue growth, financial growth,

increase can be attributed to CSR

Competency in CSR as a determinant


Plv12 LV’s collaboration with UNICEF is the

most significant initiative that turned

more focus towards the LVMH brand.



Plv13 LV’s collaboration with UNICEF

brought in several hundred of people

into the LVMH page who were directly

pitched to buy more of LVMH

products(necklaces and bracelets)



Plv14 Customers value and buy brands that

are more appealing to them


brand value

Figure 4.1: Codes of crucial points

4.1.1 The Emergence of Concepts from Codes Studied in Louis Vuitton

Code Emergence

brand image is a determinant of brand value Plv1 Plv2, Plv14

CSR is a determinant of customers value

perception on a luxury brand

Plv3, Plv4, Plv5, Plv 6, Plv7, Plv9

competency in CSR is a determinant of

luxury brand value

Plv8, Plv10, Plv11, Plv12, Plv13.

figure 4.2 Concepts from Codes

4.2 Discussion and Analysis of Findings

Research question 1: to what extent has CSR been implemented in Louis Vuitton

Some of the initiatives LV engages in include collaboration with UNICEF and the

services they give to their clients and employees. However, a section of customers had no clue

whether Louis Vuitton takes part in CSR or not. Those who had ideas about CSR in Louis

Vuitton showed satisfaction when asked what they would change about the brand’s corporate

philanthropy if given a chance. Most of them were content with what LV does. For example,

Rawan-K noted:

“I saw the collaboration between UNICEF and LV and I was looking into buying the

silver lock pendant, but I felt it’s a bit overpriced. But the cause of this idea is amazing! I

heard many people wowed by the idea from the feedback I have heard. I feel they should

do more things like this.” (Appendix I).

From this example, it is evident that the value of an initiative and the depth of appeal to the mass

is accessed by the ability to touch the hearts of many people.

From, the organisations' response, LV is a leader in the LVMH conglomerate because of

their values and their social reactions towards societal issues. Besides, LV has a personal goal to

help people. When asked about the intent of LVMH in philanthropy, Christopher mentions:

"Regarding personal things, obviously they know they have a lot of funds and a lot of

would say regarding the business I think especially with a luxury brand people would

look on a company a lot better (Appendix B).

The company gave a detailed emphasis on UNICEF collaboration, as it was their biggest success.

Other initiatives include an art exhibition in Paris. When asked about the Initiative that placed

LV on the philanthropic map, Sarah mentions:

“UNICEF collaboration definitely, also in Paris the big project where they built art

exhibition that is charity based” (Appendix A).

Basing on the stakeholder’s theory discussed in chapter two and some responses from the

interview, it is evident that LV takes part in CSR out of an obligation of sustaining the society

under which it operates. From the findings, LV’s involvement is basically towards the

satisfaction of everyone, whether they are affected by the decisions of the organisation or not. As

Lankoski, et al.,( n.d.) mentions, the two concepts of stakeholder and CSR are linked because

stakeholders are part of the motivation for business responsibility. In other words, LV’s

philanthropic effort is more of a strategic action rather than ethical.

Research question 2: Does corporate philanthropy play a role in LVMH brand performance

The central questions that led to this research questions were directed to both customers

and the working personnel within Louis Vuitton. The interviews mainly gave insights to specific

measures like customer satisfaction and the perceived value of the brand. On the other hand, the

organisational feedback was based on how the Louis Vuitton mainly perceived its brand and how

much CSR contributed towards their brand establishment.

Customers of Louis Vuitton had a mixed opinion on the quality of the LVMH. Some of

the clients who responded acknowledged that the quality of the LVMH brand is much better than

the quality of the brands from competitors.

” LVMH brands are nice and fancy, and you look so elegant in them however they are

pricey if you measure quality over the price they are overrated” (Appendix I)

“I think like I don’t know because shoes I wear I mainly LV and the quality for me is

amazing, not amazing but like I mean they last, it’s been one pair I've worn them on a

daily basis for the past three years, and they are still wearable.” (Appendix G).

Some believed that the quality of LVMH was similar to all the other luxury brands.

“I guess for luxury products from LV to other competitors I can't see much of a

difference anymore in quality, it’s hard to compare but because I have known each of

them guarantees utmost quality, and I’ve never had any quality issues with LVMH

products.” (Appendix H).

“Kind of similar to other brands I would say.” (Appendix F)

Others had a bad experience with LVMH and selectively made choices on some products while

ignoring others

“LVMH’s products are similar to their competitors, Louis Vuitton bags are honestly

lighter, and when you hold the bag you feel the quality is good, but its light and the bags

are mainly not leather the Prints Are Canvas so sometimes you say I don't want to buy an

LV bag if it's not leather I prefer buying another bag! I had an issue once one of my bags

got ripped.” (Appendix F)

These responses reflect Long’s opinion (2012). According to him, value perception does

not necessarily have to be actively driven, but sometimes it depends on the nature of the

customers. Therefore, it is possible that an organisation can actively take part in CSR, but that

does not necessarily mean that everyone will like them. Additionally, not every CSR initiative

has an impact on the consumer's purchasing behaviour. As Long (2012) suggests, when it gets to

such a point, the aspect of management competency crops in. The society is packed with various

needs and priorities. Although it is difficult to fulfil all of them, the management should consider

the various diversity aspects when meeting some of the societal demands. After all, the ultimate

goal should not be satisfaction but rather and accurate image of commitment. Long further

emphasises that meanings associated with some luxury brands may directly conflict with the

impression revealed by the CSR initiative. This, therefore, may reduce the value consumers

attribute to the brand.

However, all of the LVMH’s brand clients who were interviewed showed loyalty to the

brand (Appendices A, D, E, F, H & I). This is through their willingness to recommend the brand

to other people and their frequency of purchase. Moreover, the customers had a positive image of

the LVMH commodities. For instance, Sarah would choose to recommend the brand because it

has a positive image. She mentions:

“Yes, probably because I like it, the image as well!”

This, therefore, means that they give meaning to the commodities due to the exceptional

benefits they receive that are not found somewhere else. This concept can be related back to the

Social exchange theory as proposed by Jones (2010). According to him, sometimes customers

perceive a brand to be of higher value due to the trust they place on the firm due to visible and

tangible commitments (Jones, 2010). Popoli (2011), further mentions that these gestures of

commitments invite a reciprocal exchange. Therefore, according to the social exchange theory,

the willingness and the desire to refer others to the brand is a psychological and social process

that is driven by social responsibility.

The organisational side (Louis Vuitton house personnel) had more detailed feedback

concerning this research question. Louis Vuitton engaged in various social corporate plans. Apart

from CSR being their responsibility, Louis Vuitton had its personal goals. They believed that

philanthropy created a reputable impression of the company. Amber, a worker in LV,

particularly mentions:

“I would say clients are willing to pay obviously because as I mentioned before Louis

Vuitton is a brand known across the world we have a reputation that’s consistently upheld

and so people are willing to pay the slightly higher price points unlike that of competitors

such as Goyard which is not as known worldwide it’s not easily recognizable.”

(Appendix C).

This, therefore, means Louis Vuitton had a desire of appearing much better to the public through

philanthropy. The whole process is not only to help people but also to develop the company

considering the expensive nature of CSR. Louis Vuitton’s corporation with UNICEF hit the

headlines and left most people talking about it. According to some personnel in Louis Vuitton

house, the collaboration with UNICEF is one of the CSR initiatives that had the most social

mentions. It directly led to massive visits by people into the LV websites some of which sparked

a lot of interest among clients. This led to increases in sales of the LVMH brand. This claim is

evident through the information given by the respondent.

“The Unicef Campaign was on the front page of the LV website. But at one point it was

the main feature so like when you go on the home page you could see a big banner on the

top that has all the seasonal stu on it and for a long time that was exclusively used forff

Unicef so people who went to the website straight away saw it and advertising campaigns

where elsewhere on social media platforms and there were links that had more

information.” (Appendix B).

“Definitely the Unicef campaign was famous, people were asking for it, they wanted to

come in and see it, and take pictures even our oldest clients.” (Appendix C).

The fact that UNICEF collaboration had a great impact on the value of LVMH is well

explained by Petit (2018). According to her, customers subscribe more to these visible initiatives.

This is also backed up by Barnes (2011) who mentions that customers are internal information

processors. They internalise what they see by themselves rather than what they hear or read. LV

introduced necklaces and bracelets that were mainly for the campaign, and they made people

aware of it. Probably this explains why UNICEF campaign got so many people talking about it

all over.

Research question 3: Do Louis Vuitton’s donations influence the people’s regard for the

company as a socially responsible firm?

The researcher posed random questions to the clients on how they would feel about the

brand if LVMH participated in initiatives that are more philanthropic. The response was honest

and direct as most clients acknowledged they would buy more of LVMH products as they

believe however much the pricing might be, they have faith that at least a section of revenue will

be used for charity. Some of the responses were:

“It does in a way, and it's nice of them to do, but like if I want the bag, I want it no matter

what! It doesn’t a ect my decision to purchase. But it will definitely make the brandff

more appealing to me. “(Appendix D).

“For sure I care about that, at the end of the day you feel like the money you are paying is

going for something, for a better cause in the world. This definitely encourages me to buy

more into the brand and like it even more.” (Appendix E)

“They (LVMH) should definitely spend more as a company on CSR initiatives but it

should be done from the heart, and it should be honest and meaningful not just do it for

the sake of doing it.” (Appendix I)

Moreover, there are scenarios where Louis Vuitton received clients who mainly purchased

LVMH bags just because of the donations LV took part in. According to Guzman and Davis,

(2017) a firm can formulate a brand win for itself only if it invests in a strategic CSR initiative

approach. Therefore, a firm attracts what it portrays through its conduct. One of the most

common responses that emerged from the LV clients, all of them expect a certain level of

responsibility from LV. To some its because LVMH brand makes more money while to some its

because it is their duty. As long (2012), mentions, customers are keen and will always want to

know what a business stands for and the position a company takes in addressing matters

affecting the society particularly through CSR. From the responses, customers only choose to

support a course that is important to them. Those that meet their expectations by social

responsibility. Consequently, most of them will be attracted to the quality, try to understand the

firm, and be consist. All these only come with building trust between LV and customers

themselves.

Research question 4: Does Louis Vuitton’s corporate philanthropy affect people’s regard for the

brand

From the clients' responses, most of them have many expectations from LV. According to

them, it is important for LV to work collaboratively with other organisations to conserve the

environment and to help the members of the society. Some of them view social responsibility as

mandatory, and therefore LV has no choice but to take part. When asked about their opinion

concerning LV's collaboration with other brands to support local communities, Pegah and Rawan

mention:

“Yes, It’s a must! I also think they should make use of the unsold products rather than

burning them! I'm not saying they should give these products directly to charity, but they

should raise funds through selling these products rather than burning them and give the

proceeds to charity” (Appendix I).

“Am, well they should be, as far as I know, Louis Vuitton is working with Unicef and other

charities.” (Appendix E)

The people's regard for the company is accessed through various aspects. Some of the measures

that were used to assess whether corporate philanthropy affects the peoples regard for LVMH

brand include monetary assessment, website visits that were converted to direct sales, the termed

of loyalty in areas that benefit most from the CSR, social mentions, and the purchasing habits of

the customers. For instance, LV had necklaces specifically made for the UNICEF project where

all the proceeds from the sales would be given out to UNICEF as one of the respondents

mentions:

“I think they did quite hard try to integrate it into their sort of social media and online

platforms. They have brought the products that have sold quite well especially the

bracelets, but I wouldn't say they have made it their most hyped project.” (Appendix B)

LV took to the social platforms to inform people about this.

Also, I don't know if you've seen the LVMH Instagram, they tend to post a lot of their

charity events that they do. But concerning its size, I don't think its necessarily right.

(Appendix A).

Generally, the market share of LVMH products is higher in areas that LV participated in CSR.

Clients are willing to pay more for the brand not because it is a luxury brand, but because of the

value, they attach to it (Appendix A). This, therefore, means that clients have positive regard for

the LVMH brand in a competitive luxury market regardless of the similarity of most of the

luxury commodities. Besides, the clients subscribe to LVMH due to the consistency in the

philanthropic culture of LV. LV changes with the changes in time, but at the back of every move,

they make; they still aim at maintaining the trust with its clients (Appendix B).

Basing on monetary terms, LV has shown consistent growth in its financial performance.

Although brand value is an intangible asset, any Strong Brand attracts more sales and stock

investments (Hsu, Wang, & Chen, 2013). Since LV and LVMH began CSR, the corporation has

recorded positive and cumulative positive returns. This research did not dig deeper into financial

analysis. Our analysis was only based on estimations by the respondents.

Also, the idea of customers having high regard for the LVMH brand can also be explained

using the stakeholder's theory as illustrated in Chapter 2. According to Jones (2012), social

exchange theory proposes that social behaviour is a consequence of an exchange process that

aims at maximising benefits and minimising costs. According to the theory, customers usually

weigh between the potential benefits and risks before engaging themselves in any relationship. In

this case, the relationship between the customer to a luxury brand is dependant on the social

benefits the clients get or expect to receive in the future. According to Jones (2012), value

requires power and justice for a continuous exchange of activities between the firm and

customers.

4.3 Emerging Theory

The new ground theory of CSR and brand value can be summarised as follows. CSR has

a positive effect on brand value if competently done. CSR is a determining factor of how

customers view a brand. Customers view a firm that engages in CSR as socially active/socially

responsible. Most customers would want to associate themselves with such a brand. This

association, therefore, builds their loyalty toward that particular luxury brands. Moreover, the

effect of CSR on brand value depends on prior planning and competency. Thus, the management

and the CSR team have to select appropriate CSR initiatives to involve themselves in with care.

The consequent effect is the purchase of luxury goods at a higher price (price insensitivity),

loyalty, and bulk purchasing. Figure 4.3 below is a representation of the facets of the emergent

theory that were concluded from this study.

Brand image

Product quality

Customer satisfaction

Figure 4.3: A representation of the emergent theory

4.4 Limitations to the Study

The whole process was time-consuming. Planning for the interview, seeking authority

from the organisations, scheduling the interview dates was a process. The researcher, however,

used a piece of advice by Morrow (2005) where he developed a comprehensive study guide to

ensure he worked for a short time. Also, some of the interviewees did not show up on the day of

the interview. The interviewee, therefore, had to budget for extra time.

The responses from the interviewees were limited to their personal experiences and

knowledge. For instance, some interviewees avoided giving financial details of the company

because they had no clue. Some clients did not have any idea of LV's involvement on CSR.

Responses from such persons interfered with the data analysis process and conclusions. This is

because the analysis was done based on their limited understanding.

Management’s competency Leads to zero

complaints Leads to a massive

focus following from the public

Leads to more sales that have an impact on financial growth

Customer’s perception on CSR CSR is a customer's

expectation of a luxury brand

CSR has to be perfect to create a positive image

Customers purchase a brand that is from socially responsible firms

Socially responsible firms are attractive

Brand

value

It was difficult to verify the responses from the interviews especially on matters regarding the

financial statements. The analysis, therefore, was limited to what the respondents mentioned.

Lawrence and Tar (2013)suggest that the researcher should not have any preconceived

ideas before conducting grounded research to ensure that the formulated theory is purely from

findings. However, the researcher encountered some problems when scheduling for interviews

with the LV top personnel. Most of them were busy and demanded a specific agenda before

confirmation of the interview appointments.

There was uncertainty on saturation points since it depended on the interviewer's

judgment. However, the interviewer repeated the interviews until he was confident that the

research was not yielding any new data. Besides, the researcher followed Brown et al.'s advice,

(2002), where he was required to commence coding the data right from the start of the interview

process without necessarily waiting for all data to be collected before beginning the analysis

process.

CHAPTER 5

CONCLUSION

5.0 Introduction

Prior research on the effects of CSR on brand value was either focused on the customers

perspective of financial perspective only. Besides, most of the work done by previous

researchers overlooked the fact that CSR's effect on a luxury brand is a direct facet of

management's competency. The primary motive of this research was to develop a substantive

theoretical framework that could suggest the explanation of the relationship between brand value

and CSR in a more holistic way by incorporating both a consumer's perspective and

organisational perspective. This concluding chapter summarises the major contributions of this

study, the potential impact and the directions for future work. This chapter also summarises the

findings that tried to meet the following major research objectives.

1. To study and compare the financial aspects related to the brand before and after the

organisation embraces CSR practices.

2. To compare and analyse different executives, workers, and customers' perception of

brand building and CSR.

3. To analyse various CSR concerns from both the executives and the customers.

The four objectives are discussed basing under the research questions of this study. This is

followed by the implications of these findings to the management.

5.1 Overal Outcomes of The Study

Research Question 1: To what extent has CSR been implemented in Louis Vuitton

The research found that LV as one of the luxury brands in CSR is committed to social

responsibility. It is the heart of marketing strategy for the organisation. All examples suggest that

LVMH and most luxury brands focus on sustainability when taking part in CSR since the

industry is mostly driven by emotions and the concept of influence rather than rationality. Louis

Vuitton’s focus, for example, is how they help the communities they do business with. The firm

has a committed to help the young people through the digital art program and UNICEF initiative.

The company is also vocal on social and environmental issues.

Research question 2: Does corporate philanthropy play a role in LVMH brand performance

Through the different CSR initiatives, LV is directly telling a story to consumers who are

also interested in sustainable development. As Barnes (2011) mentions, marketing is mainly

focused on brand image. This research found some strong indications that show that corporate

philanthropy indeed pays off. The research found a positive financial growth in LV and

increased revenue from increased sales. However, this research did not link CSR directly to

financial performance but considered financial growth as a secondary consequence of an

established brand.

Research question 3: Do Louis Vuitton’s donations influence the people’s regard for the

company as a socially responsible firm?

The moral duty of all corporations including those in the luxury industry is to act

responsibly. Therefore the customer's regard for a company lies in how it has conceptualised

CSR. One of the emerging opinions of most interviewees from this research is that consumers

showed that their attachment and regard for the LV was based on what it does for them and the

society at large. The research further concluded that apart from personal appreciation, consumers

who love LV and regard it as a socially responsible firm are more likely to recommend the brand

to their peers.

Research question 4: Does Louis Vuitton’s corporate philanthropy affect people’s regard for the

brand

This research also found that brand association is directly linked to CSR. Customer-based

brand value is a broad phenomenon. However, this study only focused on the perceived quality,

brand loyalty and brand association. It was revealed that customers might choose to purchase an

LVMH product from LV not because it is a luxury brand but because they believe that proceeds

from their purchase will support a charitable course somewhere. The aspect of price insensitivity

was also revealed. For instance, LV used to sell necklaces to support the UNICEF initiatives.

Despite the cost, people still gladly bought them. Lastly, customers show loyalty to brands from

socially responsible firms. This is evident through the frequency of purchase of the brand and the

satisfaction clients show.

The use of grounded theory made the research more successful. This is mainly because it

enabled the researcher to discover more about the interactions of customers with the brand under

study. This discovery, therefore, gave a more detailed response on all the parameters that were

used to measure brand value. Besides, as Gonzales B (2017), mentions, the aspect of novelty

made the research more valid since the theories that emerged from the respondents were not in

any way tied up to any preexisting theories. During the study, a lot of focus was placed on how

exactly people view LVMH as a luxury brand that participates in CSR rather than measuring the

extent of the value tied to the brand. Further analysis was on the progress on the value of the

brand from the past to the present to assess the following effects on brand value with the

consistency and increase in CSR initiatives.

The systematic method of analysis of the codes that emerged during the interviews,

comparisons of the empirical evidence and theories was the basis of the grounded theory for this

research which is, CSR is has a positive effect on the brand value depending on the competency

of the mastermind behind the philanthropy exercise. This model was created through the

experiences of the customers and the information given by the organisational personnel. This

theory is, therefore, evidence of the need for an interconnection between the management of a

luxury brand and the customers in all their initiatives through proper communication. This is

because customers and the general public cannot value what they do not see. Therefore the

framework suggests that in pursuit of meeting all societal responsibilities luxury organisations

need to lay down all the activities they engage in through various platforms like social media and

annual financial releases.

5.1 Contributions Of this Study

According to Guzman & Davis (2017), many people abandon brands that do not show actons

of social responsibility. Therefore incompetence and ignorance of philanthropy place a luxury

brand at a disadvantage in the marketplace. Luxury firms have to act with integrity and be

truthful to any claims they make regarding social responsibility and environmental conservation.

The main intention for creating a logical connection between CSR and brand value is to generate

knowledge that will hopefully inspire managers of luxury brands, marketing managers and CSR

organisers on the importance of CSR to any luxury brand. The study will also add to the existing

literature and will be a basis for the development of further research and theories in the future.

5.2 Management’s Implications

The sustainability course though CSR is subjected to various challenges like financial

constraints, changing social needs and behaviours. This research concludes that there is a

positive relationship between CSR and brand value. The model proposed in this study is helpful

to managers especially in circumstances that they have to relate business performance and

philanthropy. Moreover, through this model, managers can consider CSR as a marketing tool

besides the normal responsibility function. The model further suggests the aspect of management

competency as an important element of CSR. Competency will not only have an impact on the

other parties benefiting from CSR but will also bring a positive outcome to the business.

5.3 Future Research Recommendations

5.3.1 Theoretical Investigation

An open theoretical concept that arises from this research pertains to the luxury brand

management. Brand managers know the exact position of the position of luxury products in the

market. Their main reason is not only to attract more customers but also to improve the

organisational management of their brands. It would be more substantial to dig deeper into the

role of brand managers in the luxury world in maintaining brand value.

5.3.2 Evaluation

More additional research approach will be important for a further understanding of the

concept of the relationship between luxury brands and brand value. This research relied on a

grounded analysis where a theory was formulated from interview findings. The suggested

research strategies that would improve the understanding of this concept include the use of

experiments, survey, case study, action research, ethnography and archival research.

5.3.3 Extension of The Similarity Framework

This research is done explicitly in the luxury industry. The theory developed is meant to

address the luxury industry. However, the study can be extended to all the other sectors including

the textile industry, sports fashion industry among others. Researching all industries is significant

because a brand value is a vital element of industrial innovation and development.

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Appendices

Appendix 1

Transcription of Interview: Part B: Measuring Company’s Effects on Brand Value

Participant: Sarah H. Position: Team Manager @ L.V.

Metric 1: Brand Awareness (Directed towards marketing purposes) 1. How would you describe

your brand, knowing it’s part of the conglomerate “LVMH”?

Response:

I think it’s a leader within the LVMH conglomerate their values definitely speak through in

terms of their beliefs in remaining strong to their heritage, I think they have a strong brand value

that they consistently push forward through and you could definitely see that they do lots of work

with other partners within LVMH and making it feel on a bigger scale than it is on its own.

2. Are there any social mentions and reviews about Louis Vuitton or LVMH?

Response:

Yeah, loads!!

3. What is the search volume trend of your brand and products since the company started to

engage in philanthropic exercises?

Response:

I think it’s very much becoming more apparent, I feel that within Louis Vuitton itself they do,

even within the stores locations they very much pro case it we have products specially sold for

UNICEF purposes, so we had the necklaces and all the profits go to UNICEF so I think very

much it’s becoming more aware and more apparent to clients within a store area, again on kind

of social media, technology, the website has always now information regarding UNICEF and

what we do for them, so social media such as Instagram platforms I feel that Louis Vuitton is

taking advantage of these platforms and its name to support programs such as UNICEF

Metric 2: Preference Metrics (Directed towards customer service) 1. Do you think customers are

willing to pay much more for LVMH products?

Response:

Yes, 100%

2. To what extent do you think customers agree with the Louis Vuitton brand and product

provision?

Response:

Very strongly, lots of Louis Vuitton Clients are very much loyal to the brand and I say again the

Heritage within it lives through out, I think clients very much buy into that, they like the heritage

the loyalty to the brand and what it means, it’s directly forever changing, we are constantly

changing to keep up with the times but remaining true to our clients is very important.

3. Are there any complaints from clients on CSR activities the company engages in?

Response:

No, no.

4. Are there any suggestions or any positive feedback about Louis Vuitton’s CSR Initiatives?

Response:

I think a lot of clients, a lot of the older Clients that have been loyal to LV for many years are

finding that the brand is changing through designer shifts but we also are getting a lot of new

clients and the newer generation such as the millennials are very much becoming more apparent

within the brand and I think the way that the brand is leading, charities are becoming a bigger

thing apparently now a-days, and millennials appreciate the connection between the two so I

don’t think there is any complaints.

Metric 3: Financial Metrics (Directed towards financial operations) 1. How can you rate the

sustainable growth of Louis Vuitton?

Response:

I think they keep moving forward, always understanding the business around you, and keeping

relevant. Technology is definitely a means for the business to grow, and charity is very important

within the company so the brand feels like it’s giving back instead of just taking in.

2. Based on the rate of return, volatility, turnover and liquidity ratios overtime, what is the trend

since Louis Vuitton started taking part in CSR activities?

Response:

Not really, I wouldn’t say so.

3. How can you rate the trend in stock market performance? What is the average monthly return

from stock exchanges?

Response:

*Confidential*

4. What is the market share of LVMH brands (Louis Vuitton) particularly in the areas where the

company has invested a lot of effort in community help programs and other philanthropic

activities?

Response:

*Confidential*

5. Based on the trend of LV’s revenues, do you think LVMH brands extract more value from

customers on an annual basis?

Response:

Yes

Metric 4: Output (Directed towards CSR initiatives)

1. What are your thoughts on sales of LVMH products within the locality and surrounding where

the company has initiated a number of CSR activities?

Response:

I don’t think it’s known well by clients specifically and directly, I think definitely in terms of

staff but obviously the heads of the businesses market this worldwide which within itself I think

raises awareness. Also I don’t know if you’ve seen the LVMH Instagram, they tend to post a lot

of their charity events that they do. But in terms of its size I don’t think its necessarily right.

2. Is there a particular campaign, environmental conservation course, sponsorship, or partnership

within an LVMH brand (Louis Vuitton) that brought in several hundreds of people to LVMH’s

landing page (LV website)? Were they directly pitched to buy more of that specific product?

Response:

UNICEF collaboration definitely, also in Paris the big project where they built an art exhibition

that is charity based.

3. What are some of the goals the company has when engaging in philanthropy? Has the

company achieved some of them?

Response:

Bringing awareness through UNICEF and they very much report not only just to clients but also

to

Appendix B


Participant: Christopher D. D. Position: Key Holder @L.V.



Response:

I would describe it as one of the world leaders in terms of the luxury fashion industry, mostly

luxury fashion retail, I think it’s an extremely historic brand in terms of some of the brands in

LVMH, and obviously one of the founding brands, I think it’s one of the most recognizable

fashion brands in the world.


Response:

Yes, they have quite a large social media presence especially through means like Instagram they

do as well have advertising campaigns but they are not as big. I think the majority of their

advertising is mostly done through social media and things like that so I definitely think that they

invested in that most recently and they do spend a lot of time and effort on their website as well

obviously that’s not social media but in terms of their online presence I think they do have a lot

in terms of that compared to some other luxury companies.



Response:

If I’m honest, it must have brought some people but I wouldn’t say right now if you say to

someone Louis Vuitton they think Oh! UNICEF! The collaboration of UNICEF! I think they did

quite hard try to integrate it into their sort of social media and online platforms, obviously they

have brought the products that have sold quite well especially the bracelets but I wouldn’t say

they have made it their most hyped project.



Response:

Yes, but I don’t think that’s because they are part of LVMH, I think it’s just because the brands

LVMH has chosen to have and the way LVMH has evolved them I don’t think people would say

Oh I want a Givenchy bag because its LVMH, I think they would say I want a Givenchy bag

because its Givenchy. LVMH is just a bit more there to keep the name of the brands alive.


provision?

Response:

The view of the brand has in the recent years gone down slightly I’d say compared with the past,

I think people obviously still love it as a brand but I think people believe that they spend a little

bit less on quality control and things like that and with quality issues I would say in the sort of

sector of people. If you ask a random person on the streets his opinion would be the same he

would say it’s so expensive, it’s so luxurious. But if you ask a client that’s been Loyal to LV for

a very long time the view would change slightly to worse compared to 30 years ago.


Response:

I’ve had people ask how much from the collaboration with UNICEF goes to UNICEF but no one

ever complained about CSR activities or philanthropic activities.


Response:

We definitely had clients saying that this company is too good as a brand to deal with issues of

poverty or starvation or charities, but I think definitely the people are behind it, even though

many think LV didn’t do it as good as they should have, obviously it’s a start and its better than

not doing it.



Response:

It’s always growing as a brand in terms of everything whether they are doing it the wrong or

right way, I think it is always growing and I don’t think as a company it will fall out of fashion,

some companies like Gucci or Balenciaga they are very weak in terms of investing in them. At

the moment obviously they are very big but they will fall back down, whereas LV no matter

what they do I think it’s always going to be perceived as one of the biggest fashion brands if not

the biggest.



Response:

Monetarily yes it did benefit Louis Vuitton, I think they did it in a very clever way, there wasn’t

loads and loads of products, it was more clear to clients one product, if purchased a donation will

happen instantly. Unlike other companies where they talk yeah we will donate 5% of our

takings... LV had a more personal experience where the client will come to purchase the item for

the sake of the donation. It wasn’t like oh o bought a bag and it happens that 5% of the amount I

paid went to UNICEF! In terms of that it has increased in that area! LV did not benefit in terms

of the business but the items they did where very good and it was cleaver making them limited to

make people want them more, because for LV they believe if you saturate the market nobody

wants the product, they did the typical LV strategy as in make it scarce but make it meaningful.



Response:

Not over my head! Sorry.



activities?

Response:

N/A



Response:

Yes, because the brands in LVMH are brands that are trusted by clients and brands that are more

sustainable, unlike competitors within the Kiering Conglomerate like Gucci, Balenciaga,

Alexandre McQueen, they are large brands but they are trendy brands but in LVMH brands are

more timeless, people would obviously be more willing to spend money in our brands rather than

in other trendy brands.

Metric 4: Output (Directed towards CSR initiatives) 1. What are your thoughts on sales of

LVMH products within the locality and surrounding where the company has initiated a number

of CSR activities?

Response:

Potentially yes, but if they have been doing this work in other areas it hasn’t been hugely

advertised. If you go to a middle eastern store and ask the clients if they are doing works down 5

miles, the road I’m not sure if they would know. It wasn’t advertised a lot! If you know what I

mean.




Response:

The UNICEF Campaign was on the front page of the LV website. But at one point it was the

main feature so like when you go on the home page you could see a big banner on the top that

has all the seasonal stuff on it and for a long time that was exclusively used for UNICEF so

people who went to the website straight away saw it and advertising campaigns where elsewhere

on social media platforms and there was links that had more information.



Response:

The goals in terms of personal things, obviously they know they have a lot of funds and a lot of

ability to influence people so in that way there is an essences to help people but in the same time

I would say in terms of the business I think especially with a luxury brand people would look on

a company a lot more better, if they know they take part in philanthropic activities, obviously its

more old fashioned to think of a company as just being very cold and we don’t help anyone we

are Luxury and we don’t deal with less fortunate people; That stereotype nowadays is broken

especially for LV being forward thinking and deciding not only that it’s good for the people they

are helping but also for brand image.

Appendix C


Participant: Amber C. Position: Senior Client Advisor



Response:

Louis Vuitton is a very Luxurious, well known, wanted by everyone brand, it’s part of the niche

market.


Response:

Yes, definitely, there is a large presence for LVMH brands on social media, for instance when

we changed our creative director it was all over the social media and across various platforms,

also recently our chairman was mentioned in the news so there is a lot of coverage both in

regards of products and brand awareness.



Response:

I would say definitely the demand for it was high due to the fact that such a large corporation is

being involved in something that is so demanded across the world, also due to the price point of

the product as well helped. It was in high demand due to that being the easy access into the

brand.



Response:

Yes, not just because its LVMH, with luxury clients are more willing to spend more because

when you’re buying luxury you know there is going to be a higher price point. I would say

clients are willing to pay obviously because as I mentioned before Louis Vuitton is a brand

known across the world we have a reputation that’s consistently upheld and so people are willing

to pay the slightly higher price points unlike that of competitors such as Go yard which is not as

known worldwide it’s not easily recognizable.


provision?

Response:

I’d say Its 50 50 some of our clients obviously understand that it’s a brand with lots of heritage

and lots of the least and lots of promises and lots of clients like to buy into that, they are not just

buying the product they are buying into the brand, where is opposite with other people some just

buy it because it’s just a Louis Vuitton item they take the heritage and all of that for granted


Response:

No. Luckily enough I haven’t received complaints about that! I wish not to


Response:

No, to be honest the only feedback I get is in regards of products.



Response:

LVMH is hugely growing obviously due to the fact that designers are moving to other brands

internationally. LVMH as a conglomerate saw a 10% increase in the first quarter of this year so

its definitely rapidly growing. It’s a corporation that’s forever expanding and looking into new

dynamics and new paths to follow



Response:

It did hugely increase off course, our collaboration with UNICEF was very successful and our

most recent release sold out on the spot.



Response:

I would not be able to answer that directly.



activities?

Response:

This is a grey area, I cannot answer that



Response:

Yes, definitely!



of CSR activities?

Response:

In regards of not only making the people more aware of the issues happening across the world

and concerns, it’s made our clients more aware because the fact of such a big corporation such

as LVMH or Louis Vuitton to be more specific, are doing our best to see what we can do to help,

and the things that we can put in place. And this made our clients more aware of the fact that we

are a brand with heritage, we are a family oriented brand and that we see the consents of the

world and therefore they can also see it through our eyes. For us to recognize it as a corporation

it makes its importance more obvious for clients.




Response:

Definitely the Unisex, people were asking for it, they wanted to come in and see it, and take

pictures even our oldest clients.



Response:

Outside of KPI’s I don’t believe I can share anything else.

Appendix D

Transcription of Interview: Part A: Customer Perception on Brand Value Participant:

Marie-Noel A. 42

Metric 1: Customer Satisfaction

1.Compared to LVMHs’ competitors in the luxury world are the quality of their products better

worse or similar to others

Response:

I would say better

2. Would you recommend LVMH brands to somebody else?

Response:

Yes.

3. How important do you think it is for LVMH to work collaboratively with other organizations

to

support local communities?

Response:

I don’t know if they do that but they should definitely work with communities and charity works.

4.What would you do so differently from what LVMH does in terms of social responsibility

activities?

Response:

Work on helping the environment, not killing so many animals.

5. Why did you choose to stick to (an) LVMH brand(s)?

Response:

Because first Its a known brand, that’s what really attracts me about LV, so I feel like the fact

that it’s a really old brand and how its spread internationally and its history shows that it’s a

really good brand, second their bags are super practical and they can fit my everyday necessities

for daily use.

6. What do you like about their brands?

Response:

I feel that the brand image hasn’t been changing much, I feel it’s something they should really

change because the new generation they should work on because the new generation is more

aware of what’s happening around them and how they are effecting the community around.

Because that’s what I feel they are concerned with. Now effectively I am a client but I don’t

know for how long I will stay because you have a lot of brands around that are being more

socially responsible.

7. What is you your favorite LVMH brand and why?

Response:

I like Celine the most but I’m not really a client. Maybe one day but definitely Celine first and

then LV

Metric 2: Perceived Value

1. How much confidence do you have in LVMH brands when choosing to make purchases from

them?

Response:

I’m always very confident I will have great quality and the best product out there

2. How many purchases have you made from the company? How satisfied are you with the

purchases? Can you share more details about some of your purchases?

Response:

Between 7 or 8, and my favorite are the classic LV bags the never full and the speedy bag. I love

how practical they are

3. Compared to what you pay for the services you get; how do you rate the value of services

LVMH Brand’s offer?

Response:

They are of very high value; you pay for what you get!

Extra Question:

1. Have you ever heard of the Louis Vuitton UNICEF collaboration?

Response:

Oh wow! I didn’t know I think this is definitely important to go on and they should share it more

with the new growing generation.

2. Does this encourage you to buy more of a brand?

Response:

It does in a way, it’s nice of them to do, but like if I want the bag, I want it no matter what! it

doesn’t affect my decision to purchase. But it will definitely make the brand more appealing to

me

Appendix E


Pegah R. Age 36




Response:

Kind of similar to other brands I would say


Response:

For sure


to


Response:

Amm, well they should be, as far as I know Louis Vuitton is working with UNICEF and other

charities.


activities?

Response:

They are making so much money so they should I guess guess invest in more charitable work

and help the world.


Response:

The services they give to their loyal clients and the quality of their products, also the after sale

service and care that they give for their clients to extend the life of their products and keep them

timeless


Response:

The quality the history, they all come from somewhere and represent something and the

inspiration behind every brand I like it, the quality the shapes and designs of their products and

the designers they have, like the current designer of Louis Vuitton Nicolas Guisqueire like I

remember when he was in Balenciaga and then he moved to LV Balenciaga went so much down

and after that Alexandre wang took over and people where still going to Balenciaga and still

asking for the Nicolas Gasquiere collections.


Response:

I think I would say Dior because they are the most stylish and they are the most stylish brand in

LVMH and plus quality they have some certain standards they don’t go below them, unlike LV

where they have trashy customers coming for their cheap products like the speedy and never full,

Dior doesn’t have these kind of stuff they have a certain high starting point they don’t go below

it.



them?

Response:

I will say yes after all these years that I’ve been a loyal client, except for crocodile bags because

I’ve never yet purchased one. But I’m always confident with my purchase.



Response:

I’m very satisfied with what I’ve got from LVMH brands and I’ve got many I don’t know the

exact number, and my favorite is for example t



Response:

I was buying a bag for my mom and I had to call her to make sure that that’s the one She wants,

and in the store the woman that was helping me was not great, was very inpatient and had an

attitude towards me even though I ended up paying around £5000 but then she was like really,

come on, she has to make a decision quicker. But when I went home I thought about it and that’s

not the right way to deal with the client I need to call them and talk to head office of Dior so I

called and complained and 2 days after they sent me an apology letter in a really nice card and 2

candles with a dust bag filled with flowers. It was really nice of Dior that they looked into the

client history and see that she is buying from us around 3 bags a year so they could see my name

and know what I’ve bought over the years. I love the candles! It shows that they care about their

clients and they don’t just talk they act! they did something. Which is why I love their service.

Extra Question:

1. Do you think if LVMH brands participate in more Philanthropic activities do you think it will

make u like the brand more?

Response:

For sure I care about that, at the end of the day you feel like the money you are paying is going

for something, for a better cause in the world. This definitely encourages me to buy more into the

brand and like it even more

Appendix F


Sara D. Age 21




Response:

LVMH’s products are similar to their competitors, Louis Vuitton bags are honestly lighter and

when you hold the bag you feel the quality is good but its light and the bags are mainly not

leather the Prints are Canvas so sometimes you say I don’t want to buy a LV bag if it’s not

leather I prefer buying another bag! I had an issue once one of my bags got ripped.


Response:

Yes, probably because I like it, the image as well!


to


Response:

Yes, like LV and unite! I really like the idea I think they should do more of that! I even tried to

purchase the new bracelet when I went into the store and it was sold out all around the world!


activities?

Response:

No I think what they do is enough and great!


Response:

The quality and the price are great!


Response:

I feel especially with LV they do stuff for a younger generation! I was in the store and I saw the

new patches collection! It makes me feel they are a young brand.


Response:

Dior, I love everything there! Wow.



them?

Response:

I’m pretty much confident obviously!



Response:

I don’t know how many items I’ve purchased they are many! I use thought mostly my black

alma bag from LV, I also have the Dior which I use a loot its light I can wear it in different ways

put it on my shoulder, around my waste or as a clutch for evenings or weddings. I also got my

first pair of shoes form lv just now because I didn't find any light colors at Hermes



Response:

The services are very high, the lady helping me was so nice she made me buy everything! They

fixed my bag and really served me well.

Appendix G


Karim B. Age 28




Response:

I think like I don’t know because shoes I wear I mainly LV and the quality for me is amazing,

not amazing but like I mean they last, it’s been one pair I’ve worn them on a daily basis for the

past 3 years and they are still wearable.


Response:

Yes.


to


Response:

It’s a good image for them, it makes them generate more money.


activities?

Response:

Yeah because not everyone they do caters to everyone! You know like there are some people

who cannot participate in everything they do. They have to do something more accessible to

everyone.


Response:

Because their stuff are nice, the good quality as well.


Response:

They are nice brands, each one of them is different, they are not comparable.


Response:

LV.



them?

Response:

10/10, not worried or skeptical about anything when I buy.



Response:

Mainly shoes! A lot of shoes and wallets.



Response:

They are mainly good, like you want them to personalize your item with your initials and they

say they need one weeks but they will do it in 2 hours for you, they are very helpful!

Extra Question:

Do you think it’s important for them to do more Charity work and why?

Response:

Like its important yeah, like maybe it’s not as important for me as it would be to other people but

I think it is! They should help people with the lots of money they make. They should also think

of where they get the leather from and do it in a more responsible way. Because I’m sure there is

a negative

Appendix H


Justin E. Age 27




Response:

amm I guess for luxury products from LV to other competitors I can’t see much of a deference

anymore in quality, it’s hard to compare but because I know each of them guarantee utmost

quality and I’ve never had any quality issues with LVMH products.


Response:

I definitely will because my circle of friends has the same interest as me in fashion and luxury

goods and if you think about good quality and fashion I immediately think of LVMH products on

my mind when I want to recommend something.


to


Response:

It’s an interesting twist of things, I think it adds to their brand image and value and it’s a good

way to give back to the world with regards to social responsibility.


activities?

Response:

I guess Just be more involved in giving back to the community, having bigger programs not just

seasonal programs but really being able to get people involved not just for certain lines but all

their products for customers to have the option to give back to communities and for those that are

less fortunate.


Response:

Well am I always used the brand ever since I was a kid, my people ahead of me, my parents my

uncles and aunts, people I know normally really Regard LVMH and LV products as really the

epitome of luxury so to have an item from Louis Vuitton is really something to be proud of to

show you that you have achieved something so to me it’s a symbol of achievement which is why

I really respect it.


Response:

I like the twist they put to each brand so each brand really has a certain character that I admire, m

not a big fan of all their brands but I really like how Louis Vuitton sticks to that luxury and how

they add a twist to it especially with their new designer Virgil Abloom even with their other

brands like Kenzo Givenchy I really like the distinct character that each has.


Response:

I definitely will go with LV itself the reason is I have regarded it ever since I was kid, it shows to

me that someone has really achieved something, really has worked when they have this product.

It’s not about the style or the price of the product its really how it ads twists to it and how it’s a

classic brand where you really see the history and prestige it has when you see a product from

them.



them?

Response:

It takes me a while before I buy a product I really do my research I make sure I’m making the

right decision, normally for brands like this that cost a lot of money it takes me a while because I

want to make sure I’m making the right decision. So yeah I want to make sure I don’t regret

anything. I never had any problems with LVMH products I’m very confident these are very

durable because of my experience; I also know the services they give back are amazing.



Response:

I’ve purchased more than a handful I would say, I have a wallet and a few sneakers and some

luggage, ammo I’m a very simple on the go guy, I love my sneakers so I have so many sneakers

from different brands and I think having LV sneakers is a nice way to add a twist to my sneakers

game, I also like to add a bit of luxury to my every day wear so I want things I use every day to

be the best items I have I got a wallet that I can use appreciate and use every day. I also have the

horizon carryon luggage because I love traveling and I love having the best items with me

wherever I go. The ones I use often I want to make sure they are the best.



Response:

I would give them maybe a 9.5 I’m very happy with the customer service they provide, they

make sure excellent customer service is given but off course you can’t avoid waiting in line and

sometimes some problems occur but it has been a very good experience so far but there is a place

for improvement as always.

Appendix I:


Rawan K. Age 24




Response:

LVMH brands are nice, and fancy and you look so elegant in them however they are pricey, if

you measure quality over price they are overrated.


Response:

Yes, definitely!


to


Response:

Yes, It’s a must! I also think they should make use of the unsold products rather than burning

them! I’m not saying they should give these products directly to charity but they should raise

funds through selling these products rather than burning them and give the proceeds to charity.


activities?

Response:

I saw the collaboration between Unisex and LV and I was really looking into buying the silver

lock pendant but I felt it’s a bit overpriced. But the cause after this idea is really amazing! I heard

many people wowed by the idea from the feedback I have heard. I feel they should do more

things like this.


Response:

They are Very Classy brands, very chic, they are not intricate and definitely not sophisticated,

I’m a very simple person and I’m not funky at all! And LVMH brands in a way define my style.


Response:

Their classiness and chic style.


Response:

I have many favorite brands but my main favorite 2 are Louis Vuitton and Dior



them?

Response:

Very confident, when I’m going to purchase an item from any LVMH brand I go to their stores

with full confidence and trust in their brand and products.



Response:

I have more than 20 products just from Louis Vuitton, but from other LVMH brands, I have even

more than that. My first Louis Vuitton product was my never full GM bag, I used it during my

college years and I have to say it’s never full!! I used to put my jacket, my books, my shoes...

and it’s so light, not heavy at all. And shoes my favorite is my LV heritage leather boots, I also

have an alma bb in red and an alma mm in black I also have silk and wool scarfs from LV in

different colors, shapes and sizes. I Also have the petit malle in monogram. I have the twist as

well, and the Eva clutch. I also have the Louise Clutch in black patent leather



Response:

The services they provide are very good but the service in their stores is slightly disappointing,

it’s always busy in their stores and the Sales Associates have a bit of ego, and I walk into these

stores worldwide to buy not to waste their time so they should treat customers better. It’s very

important to satisfy your clients.

Extra Question:

1. Do you think if LVMH brands participate in more Philanthropic activities do you think it will

make u like the brand more?

Response:

they should definitely spend more as a company on CSR initiatives but it should be done from

heart and it should be honest and meaningful not just do it for the sake of doing.

Appendix J


Participant: Daniel P. F. Position: Store Manager @ Louis Vuitton



Response:

Its one of the most high profile luxury brands in the world


Response:

Yes



Response:

This information is not publicly shared, most of the Philanthropic activities done by us as a

company is not widely advertised, its more localized done between and by our teams and mainly

shared on linked-in between us. But in the case of Louis Vuitton & Unicef definitely yes, people

were slightly more aware of that and more engaged.



Response:

I think clients will pay more for any product thats well crafted and thats Hot, and something that

they have saved up for and admired for so long.


provision?

Response:

I think you either buy into a Brand or you don’t. It ether relates to you or it doesn’t, clearly there

are many people in the world that this brand does not relate to, and no matter what you do you

won’t be able to appeal to them. And on the other side you have people that need the latest

collection from us and are always up to date with all our universes.


Response:

No


Response:

No, I’ve never heard or been exposed to any feedback regarding our CSR activities. prior to that

we did receive several times feedback regarding our collaboration with the art world and there

was a lot of appreciation towards that, and how attached the brand is to the art world. But not

CSR activities.



Response:

Absolutely, since the mid 90’s there’s been huge growth



Response:

I think CSR is important to all companies and it’s something that we all engage in to some

extent, but o think its not the main reason behind the growth.



Response:

Confidential



activities?

Response:

I think its more localized from the fundraising point of view, we recently did a 10k run as

employees of Louis Vuitton to raise funds for Unicef as well as a bike ride which is happening

next week from London to Cognac to raise money for Unicef as well, but on the other hand we

have the lock-it collaboration with Unicef which obviously was more global effect and had a

wider effect as it was more publicized and the involvement with Unicef worked very well.

However our smaller more localized initiatives help in keeping our teams engaged with

philanthropic activities and making them more aware. It doesn’t raise a lot of money on the scale

of things but it keeps the idea alive across the company and keeps a good spirit between the

team. Its just a bit of fun!



Response:

Yes absolutely but not because of charity work. We grow every year.



of CSR activities?

Response:

I think it might have but I don’t know what happens in other regions.




Response:

Definitely UNICEF in 2016, but I’m sure Mr. Arnault does more things on a local level with

universities, etc. And im sure he does things on a much wider scale but not that I’m aware off now.



Response:

I don’t know what they are set out to do but it’s definitely clearly important as a company now to

have involvement with Corporate Social Responsibility but I’m not clear on what the initial goal

isexactly.

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