CSR ads matter to luxury fashion brands: a construal level approach to understand Gen Z consumers' eWOM on social media

Purpose The purpose of this study is to examine the interaction effect of perceived psychological distance toward the luxury brand and construal level of the CSR ad content on young consumers' perceptions toward the CSR ad (i.e. ad-brand congruency and perceived trust on CSR ad). This study also investigates the mediation effects of ad-brand congruency and trust on electronic word-of-mouth (eWOM) intention on social media. Design/methodology/approach A two (low vs great psychological distance) by two (low vs high construal level) between-subjects experimental study is conducted with samples of social media users ( n = 570) in the United States. Participants were randomly assigned to view one of the four CSR ads and instructed to respond to questions in the survey. The proposed hypotheses are tested using moderated serial mediation. Findings The interaction between psychological distance and construal level significantly influences ad-brand congruency. When participants view detailed information content (i.e. low construal level) with an accessible luxury brand (i.e. low psychological distance) in the CSR ad, they are more likely to perceive the ad is congruent with the brand compared to the CSR ad with abstract information content. There is no difference in ad-brand congruency for the aspiration luxury brand according to different content (i.e. low vs great construal level). Importantly, however, for both brands, the results reveal dual roles of the ad-brand congruency which increases eWOM intention directly and indirectly through trust. Findings confirm serial mediation effects of ad-brand congruency and CSR trust on the eWOM intention on social media. Originality/value By uncovering the interaction effect of psychological distance and construal level on ad-brand congruency, this study implicates how luxury fashion brands need to differently create CSR ad content. Our findings confirm dual ways of information processing that lead to positive engagement (i.e. eWOM) on social media, particularly among young consumers.