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Which maximizes donations: Charitable giving as an incentive or incentives for charitable giving?

Chia-Chi Chang and Po-Yu Chen

Journal of Business Research, 2019, vol. 97, issue C, 65-75

Abstract: With charitable donations becoming a conventional norm, companies may choose to donate their products to improve public image and increase product visibility. Using two donation types (donation-for-gift/charity sale) and two product types (hedonic/utilitarian), this research discusses how charities should frame product-for-money activities toward enhancing compliance and re-donation intentions upon receiving product donations. Two 2 (donation types) by 2 (product types) between-subject experiments are conducted in college campus cafeterias. The first study uses an inspiring cause while the second study provides a scenario designed to evoke sympathy. Results show that donation-for-gift garners higher donation intentions compared to charity sale, as explained by the dual-process model. It is also revealed that product type moderates the influence of donation type on donation intention only when a sympathetic appeal is used. The fitting issue between product type and cause appeal, along with the licensing effect are presented to explain this finding.

Keywords: Donation; Charity Sale; Donation-for-gift; Dual-process model; Licensing effect; Crowd-out effect (search for similar items in EconPapers)
Date: 2019
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Handle: RePEc:eee:jbrese:v:97:y:2019:i:c:p:65-75