Effect of CSR contribution timing during COVID-19 pandemic on consumers' prepayment purchase intentions: Evidence from hospitality industry in China.

Abstract

Corporate social responsibility (CSR) contributions are essential for hospitality companies during the COVID-19 pandemic. However, little is known about how CSR contribution timing during the pandemic might affect consumers' prepayment purchase intentions. This paper takes a hospitality company as an example, using two experiments to explore (a) the effect of CSR contribution timing on consumers' prepayment purchase intentions and (b) the potential roles of psychological contracts and distance to the COVID-19 risk center. Study 1 demonstrated that CSR contributions during the COVID-19 outbreak (vs. after its peak) led consumers to have higher prepayment purchase intentions, revealing the impact of CSR contribution timing. This effect was also driven by psychological contracts between consumers and the hospitality company. Study 2 showed that, when participants were in the peripheral area of a COVID-19 outbreak, CSR contributions during the outbreak (vs. after its peak) increased prepayment purchase intentions whereas the opposite effect occurred when consumers were in the risk center.