The Demand for Products Linked to Public Goods: Evidence from an Online Field Experiment

Brian McManus () and Richard Bennet ()
Additional contact information
Brian McManus: Department of Economics, University of North Carolina, http://www.unc.edu/~mcmanusb
Richard Bennet: CCA Global Partners

No 08-28, Working Papers from NET Institute

Abstract: We conduct a field experiment at a nonprofit organization’s online store to study how demand changes when consumers’ purchases generate revenue for a charitable cause. Consumers respond strongly when their purchases generate small donations by an anonymous outside group, but responses are substantially weaker when the outside donations are relatively large. Responses are also strong when the outside donation requires a personal donation which consumers generally decline. Overall, increasing the salience of financial incentives appears to dampen consumers’ responses to charitable messages. We also present evidence that the donation pledges reduce price sensitivity and have positive long-term effects on demand.

Keywords: Field Experiments; Charity-Linked Products; Corporate Social Responsibility; E-Commerce (search for similar items in EconPapers)
JEL-codes: C93 D64 L30 M14 (search for similar items in EconPapers)
Date: 2008-10, Revised 2008-10
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