The Impact of NPO Credibility on Enterprise Brand Image in Cause-Related Marketing: A Study Based on the Mediating Effect of Perceived Corporate Hypocrisy

Abstract

In recent years, scandals regarding the malpractices of many nonprofit organizations (NPOs) for selfish ends have eroded public trust in them. Therefore, it is necessary to consider whether the credibility of NPOs, as one of the three key implementers in cause-related marketing (CRM) campaigns, has a transfer effect on enterprise brand image. The aim of the current study is to examine the relationship between NPO credibility and enterprise brand image, along with its underlying mechanism and boundary conditions. Drawing on the affect-transfer model as well as attribution theory, we propose a theoretical model. This model highlights the mediating role of perceived corporate hypocrisy in the relationship between NPO credibility and enterprise brand image. Moreover, it incorporates public emergency, specifically in reference to the COVID-19 pandemic, as a moderator. Three experiments were conducted to test our model. Results reveal that consumers perceive a more negative enterprise brand image when the company partners with a low-credibility NPO compared to a high-credibility NPO. Additionally, the impact of NPO credibility on enterprise brand image is mediated by perceived corporate hypocrisy, which is weakened in the presence of a public emergency.