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Corporate Philanthropy Affecting Consumer Patronage Behavior: The Effect of Reciprocity and the Moderating Roles of Vicarious Licensing and Strategic Fit

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  • Erin Cho

    (Strategic Design Management, School of Design Strategies, Parsons, New York, NY 10011, USA)

  • Jihyun Lee

    (Department of Fashion Marketing, Textile & Fashion Campus of Korea Polytechnics, Daegu 41027, Korea)

  • Yuri Lee

    (Department of Textiles, Merchandising and Fashion Design/Research Institute of Human Ecology, Seoul National University, Seoul 08826, Korea)

Abstract

This study investigates the manner in which corporate philanthropy affects consumer patronage toward a brand. In so doing, we propose reciprocity as a key mechanism, which manifests the effect of corporate philanthropy on patronage behavior, and examine how vicarious licensing and strategic fit would mitigate the relationship between reciprocity and patronage behavior. The results indicate that reciprocity significantly increases one’s intention to participate in the philanthropic activities that a company supports and the intention to purchase its products. Vicarious licensing is found to lessen the effects of reciprocity on participation intention and purchasing intention. Strategic fit strengthens the path from participation intention to purchasing intention.

Suggested Citation

  • Erin Cho & Jihyun Lee & Yuri Lee, 2017. "Corporate Philanthropy Affecting Consumer Patronage Behavior: The Effect of Reciprocity and the Moderating Roles of Vicarious Licensing and Strategic Fit," Sustainability, MDPI, vol. 9(7), pages 1-15, June.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:7:p:1094-:d:102463
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    References listed on IDEAS

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