Corporate Philanthropy: A Study of Consumer Perceptions

Abstract

The purpose of this research is to examine the perceptions that consumers have about corporate philanthropy and to determine the similarity or differences in perception across different socio demographic groups. Perceptions have been examined with the help of the model of information processing for consumer decision making.

This research assumes importance because of lack of similar research in India and the likelihood of increasing corporate philanthropy in India. Data was collected from 102 respondents selected randomly through multistage area sampling. Nine hypotheses were tested. In addition answers were sought to two research questions.

The study reveals that while the Indian consumers perceive corporate philanthropy to be important they attach more importance to quality, price and brand popularity than to corporate philanthropy. The interpretation of corporate philanthropic activities is mixed. The motive for corporate philanthropy is largely perceived to be self interest although on some counts corporate philanthropy leads to gain in reputation. Corporate philanthropy is not likely to translate into greater patronage from consumers. The perceptions of different socio demographic groups are largely similar.

While the communication of corporate philanthropic efforts needs to be improved the corporate philanthropic efforts themselves may be designed keeping in mind people's preference for progressive and secular issues.