Turning loss into gain: how distressed brand’s philanthropic corporate social responsibility drives customer citizenship

Purpose This study aims to investigate how philanthropic corporate social responsibility activities of financially distressed brands influence customer citizenship behaviour. It examines the mediating roles of corporate social responsibility support and corporate reputation and the moderating effects of brand preference and corporate social responsibility-brand fit. Design/methodology/approach Using data from 395 consumers of the Chinese sports brand Hongxing Erke, a structural equation model was employed to test the proposed hypotheses. Findings The results show that consumer perceptions of philanthropic corporate social responsibility are a significant driver of customer citizenship behaviour and corporate social responsibility support. Corporate social responsibility support and corporate reputation fully mediate the relationship between philanthropic corporate social responsibility and customer citizenship behaviour. Brand preference and corporate social responsibility-brand fit negatively moderate these relationships, with low brand preference amplifying the impact of corporate social responsibility perception on corporate reputation, and the impact of corporate social responsibility and corporate reputation on customer citizenship behaviour. Low corporate social responsibility-brand fit strengthens corporate social responsibility support. Originality/value This study makes a unique contribution to brand and marketing literature by demonstrating how philanthropic corporate social responsibility can facilitate a reputational cushion for struggling brands. It also provides important insights to help managers utilise corporate social responsibility to maintain consumer trust and brand equity despite financial constraints. To the best of the authors’ knowledge, this is the first study to employ the deservingness theory during dilemmas in branding research and incorporate the theory of reasoned action and the legitimacy theory to provide actionable insights for both academic research and practical business strategies.