Does conspicuous decoration style influence customer's intention to purchase? The moderating effect of CSR practices

Abstract Using an experimental research design, this study examines the main effect of conspicuous hotel decoration style on consumer purchase intention, and tests the moderating role of corporate social responsibility (CSR) practices and the mediating role of image perception on the relationship between conspicuous decoration style and purchase intention with Chinese consumers. The results indicate that decoration style had a critical role in explaining Chinese customers’ purchase intention. Specifically, a low conspicuous decoration style led to stronger customer purchase intention than did a high conspicuous decoration style. The relationship between conspicuous decoration style and customer purchase intention was found to be fully mediated by image perception. The findings emphasize the significance of CSR in influencing Chinese customers’ purchase intention with hotels of a highly-conspicuous decoration style. Externally oriented CSR practices (i.e., corporate philanthropy, environmental protection) were found to be more significant in moderating the relationship between conspicuous decoration style and purchase intention than internally oriented CSR practice (i.e., employee treatment). Hotels engaging in philanthropy and environmental protection, can not only elicit a positive response from consumers, but also help mitigate the risks of a loss of organizational legitimacy as a result of high conspicuous decoration.