Corporate sociopolitical activism (CSA): The role of perceived impact on consumer response to contribution type

Abstract

Responding to stakeholder pressure, many hospitality companies have demonstrated their support for controversial issues through monetary and in-kind contributions. Yet, the underlying mechanism explaining consumers' responses to monetary and in-kind donations to controversial issues remains unclear. Using a single-factor (contribution type: in-kind vs. monetary) between-subjects experimental design, the current study examines how contribution type influences the perceived impact of company donations. Results suggest that in-kind (vs. monetary) contributions have a greater perceived impact and are, therefore, seen as more sincere leading to a greater brand attitude and purchase intention. In light of these findings, practitioners might want to contribute in-kind to sociopolitical issues whenever possible. This study adds to the growing literature on corporate sociopolitical activism (CSA) by highlighting which contribution type is most effective. Additional theoretical and managerial implications are discussed.