Restaurant proactive philanthropic activities and customer loyalty: a scenario-based study during the COVID-19 pandemic period

Abstract

PurposeThis study aims to (1) examine the effect of customer awareness of restaurant philanthropic activities on customer loyalty; (2) investigate the mediating roles of customer social benevolence trust, perceived restaurant reputation and affective commitment on the relationship between their awareness of restaurant philanthropic activities and customer loyalty; and (3) test the path effect differences between the directed and general philanthropic activities during the COVID-19 pandemic period.Design/methodology/approachThis study used online scenario-based surveys to collect data. Based on 293 useable surveys, partial least squares structural equation modeling was applied for data analysis.FindingsThis study finds that customer awareness of restaurant philanthropic activities positively relates to customer loyalty. Moreover, customer social benevolence trust, perceived restaurant reputation and affective commitment have positive mediating effects on the relationship between their awareness of restaurant philanthropic activities and customer loyalty. There is no significant path effect difference between the directed and general philanthropic activities.Practical implicationsThis study suggests that restaurant decision-makers should conduct either directed or general philanthropic activities as a marketing tool to sustain customers during the COVID-19 recovery.Originality/valueThis study is the first study that discusses the marketing role of corporate philanthropy in the restaurant industry during the COVID-19 pandemic and stresses the importance of proactive strategic donations that helps restaurants' recovery.