Corporate philanthropy affecting consumer patronage behavior: The effect of reciprocity and the moderating roles of vicarious licensing and strategic fit

Abstract

This study investigates the manner in which corporate philanthropy affects consumerpatronage toward a brand. In so doing, we propose reciprocity as a key mechanism, which manifeststhe effect of corporate philanthropy on patronage behavior, and examine how vicarious licensing andstrategic fit would mitigate the relationship between reciprocity and patronage behavior. The resultsindicate that reciprocity significantly increases one's intention to participate in the philanthropicactivities that a company supports and the intention to purchase its products. Vicarious licensing isfound to lessen the effects of reciprocity on participation intention and purchasing intention. Strategicfit strengthens the path from participation intention to purchasing intention.