Exploring the Impact of Corporate Philanthropy on Brand Authenticity in the Luxury Industry: Scale Development and Empirical Studies

Abstract

The objective of this study was to investigate the concept of perceived corporate philanthropy (PCP) among consumers of luxury goods and examine the differences these consumers perceive in terms of philanthropic actions, particularly within the luxury sector. To address this question, we adopted the following approach: (1) Defining the concept of PCP through an extensive analysis of 2590 articles using GEPHI methodology. (2) Developing a measurement scale for the PCP construct. (3) Exploring the impact of PCP on perceived brand authenticity by comparing consumers of luxury hotels and standard hotels. The results of our multigroup analysis indicated a significant difference among consumers. Corporate philanthropic strategies had a notably stronger influence on the perception of PCP among luxury hotel consumers. This finding underscores the substantial divergence within the luxury marketing literature. These consumers seek brands that align with their desire to associate themselves with robust and authentic brands that carry symbolic significance, which allows them to identify and connect with these brands. By consuming these brands, they are able to attain their desired status. This study sheds light on a significant variable in contemporary marketing, namely, PCP, which provides new avenues for differentiation and leverage within the luxury goods industry. As a result, this study provides valuable managerial recommendations to companies and NGOs, aiming to assist them in tailoring their philanthropic strategies to effectively resonate with their target audiences and bolster their brand reputation.