Can corporate philanthropy change consumers’ perceptions of Japanese multinationals and reduce animosity toward them?

Abstract

Purpose The purpose of this paper is to empirically investigate how corporate philanthropy (CP) can affect consumer perceptions of Japanese multinationals, for which there exists strong animosity in Asia, and how this animosity can be attenuated. Design/methodology/approach The study first examines Japanese firms in China (Study 1) and then Japanese, European and local firms in Korea (Study 2). Findings The results suggest that CP activities can have a positive effect on the consumer recognition of company localness and they can also attenuate company animosity for foreign multinationals. In addition, the findings suggest that Japanese multinationals can benefit greatly from CP activities in Asia than for domestic and other foreign firms. Research limitations/implications The study found that consumers do not have ethnocentric attribution biases in evaluations of CP activities by foreign multinationals, as suggested by attribution theory (Hewstone, 1990; Nisbett, 1971). Originality/value There is limited evidence supporting the effects of CP activities by foreign multinationals from a country of origin for which there exists strong animosity.

Animosity based on traditional enmity versus other causes

“…This negative feeling in turn may reduce their intention to purchase Japanese products, even if they are perceived as being high in quality (Klein et al , 1998). Other studies have also investigated Chinese consumers' animosity that is grounded on conflicts with other countries as affecting purchase decisions (Han et al , 2020, 2021; Souiden et al , 2018).…”

The effects of consumer ethnocentrism and consumer animosity on perceived betrayal and negative word-of-mouth

“…Different industry features might generate different effects on consumer evaluations. Finally, future research on ethnocentrism can be targeted at different countries or groups (Han et al , 2019). Hamin et al (2014) found ethnocentrism influence customers' preference for their own latecomer brands in the emerging markets.…”

Committed to help: the effects of frequency of corporate donations on luxury brand evaluations

“…A large body of research has debated possible reasons why companies engage in CSR. Prior research indicates that most firms implement CSR initiatives to enhance reputation (Chernev and Blair, 2015;Ellen et al, 2006), co-creation behavior (Yoon and Lee, 2019) or to positively influence corporate image (Han et al, 2019), consumer brand attitudes or brand choice (Vanhamme et al, 2012).…”