The Effects of Corporate Philanthropy Communication Perception Variables on Brand Equity and Consumer Loyalty

Abstract

Objectives: This study aims to verify how the factors contributing to consumers’ perceptions of corporate philanthropy affect brand equity and consumer loyalty mediated by consumer-company identification and trust. This study set the direction for strategies of philanthropic activities among South Korean companies based on a survey of their CSR and philanthropic activities. It validated hypothetical model among factors contributing to consumers’ perceptions of corporate philanthropy, corporate motivational factors, and performance factors such as brand equity and consumer loyalty. Methods: Data were collected through an online survey. A total 390 questionnaire responses were used in the analysis, along with the demographic characteristics of the respondents. This study used the bootstrap method to analyze the direct and indirect effects and the total effects size of the correction model. Results: The results showed that the effects of factors contributing to consumers’ perceptions of corporate philanthropy on consumer loyalty through consumer-company identification, consumer trust and brand equity were statistically significant. Consumer perception of transparency had a significant indirect effect on consumer trust mediated by consumer-company identification. Conclusions: The factors contributing to consumers’ perceptions regarding corporate philanthropy such as consumer perception of transparency, authenticity and value congruence of corporate philanthropy had a statistically positive effects on consumer-company identification.