How does corporate hypocrisy reduce customer co-creation behaviors? Moderated mediation analysis of corporate reputation and self-brand connection

Purpose: Customer co-creation behaviors significantly affect a firm's performance and sustainable growth. This study tested the mediating role of corporate reputation in the relationship between corporate hypocrisy and two types of customer co-creation behaviors: customer citizenship behavior and customer participation behavior. The study also investigated the moderating effect of self-corporate brand connection on the corporate hypocrisy–corporate reputation relationship and the indirect relationship between corporate hypocrisy and customer co-creation behavior through corporate reputation. Design/methodology/approach: The authors conducted a two-wave research survey with 346 Korean bank customers and tested our hypotheses using PROCESS Macro. Findings: Corporate reputation mediated the relationship between corporate hypocrisy and customer citizenship/participant behavior. The negative effect of corporate hypocrisy on corporate reputation was more pronounced when self-corporate brand connection was high. Self-corporate brand connection further moderated the indirect effect of corporate hypocrisy on customer citizenship/participant behavior through corporate reputation. Originality/value: The results clearly explain how corporate hypocrisy affects customer co-creation behavior. This study advances corporate hypocrisy and corporate reputation research by proposing and verifying a moderated mediation model.