When Less is More: Consumers Prefer Brands that Donate More in Relative versus Absolute Terms

Elizabeth A. Keenan (), Anne V. Wilson and Leslie K. John
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Elizabeth A. Keenan: Harvard University
Anne V. Wilson: University of Pennsylvania
Leslie K. John: Harvard University

Marketing Letters, 2022, vol. 33, issue 1, No 5, 43 pages

Abstract: Abstract When trying to make a good impression on consumers through charitable giving, is it better for brands to maximize the overall dollars they donate or how much they give in relative terms; for example, the proportion of profits? Across five studies we show that consumers prefer a brand that donates less in absolute dollars, if it reflects a higher proportion of profits, compared to a brand that donates more money overall, when it reflects a smaller proportion of profits. This preference emerges because consumers use the relative size of the donation as a stronger indicator of the brand’s generosity than the absolute dollar amount. The effect persists even when firms make a smaller amount of money seem more generous (i.e., seem larger in relative terms) than a larger amount by condensing the timeframe of a donation.

Keywords: Cause-related marketing; Charitable donations; Generosity; Altruism (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s11002-021-09608-1

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