Signaling Virtue: Charitable Behaviors Under Consumer Elective Pricing

Minah H. Jung, University of California Berkeley, USA
Leif D. Nelson, University of California Berkeley, USA
Ayelet Gneezy, University of California San Diego, USA
Uri Gneezy, University of California San Diego, USA
In four field experiments (N= 58,501), we investigate how consumers socially signal their charitable identity under pay-what-you-want pricing. We find that consumers are sensitive to signal type (commercial vs. charitable) but insensitive to signal scale. We observe these behaviors in both purchase likelihood and purchase prices.
[ to cite ]:
Minah H. Jung, Leif D. Nelson, Ayelet Gneezy, and Uri Gneezy (2013) ,"Signaling Virtue: Charitable Behaviors Under Consumer Elective Pricing", in NA - Advances in Consumer Research Volume 41, eds. Simona Botti and Aparna Labroo, Duluth, MN : Association for Consumer Research.