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

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.