The Effectiveness of Donation Promises in Charity Auctions As a Cause-Related Marketing Strategy

A donation promise is the amount to be donated by sellers as part of cause-related marketing transactions. We study the relationship between donation promise and charity auction revenue. Using charity auctions we determine consumers’ willingness to pay for different donation promises. Results of two controlled field experiments indicate that higher donation promises lead to increased selling prices, but at a diminishing rate. Furthermore, relative donation promises influence bidders’ perceptions and selling prices by serving as comparison frames and contrast to target donation promises. We observe significant overpayments for low donation promises, suggesting that sellers can profit from charitable associations.



Citation:

Leo Wong and Peter Popkowski Leszczyc (2011) ,"The Effectiveness of Donation Promises in Charity Auctions As a Cause-Related Marketing Strategy", in AP - Asia-Pacific Advances in Consumer Research Volume 9, eds. Zhihong Yi, Jing Jian Xiao, and June Cotte and Linda Price, Duluth, MN : Association for Consumer Research, Pages: 296-297.

Authors

Leo Wong, University of Alberta, Canada
Peter Popkowski Leszczyc, University of Alberta, Canada



Volume

AP - Asia-Pacific Advances in Consumer Research Volume 9 | 2011



Share Proceeding

Featured papers

See More

Featured

N6. Not Myself: The Impact of Secret-Keeping on Consumer Choice Regret

DONGJIN HE, Hong Kong Polytechic University
Yuwei Jiang, Hong Kong Polytechic University

Read More

Featured

Speaking ill of Others: When Negatively-Valenced Gossip Fosters Social Connection

Alixandra Barasch, New York University, USA
Jonathan Zev Berman, London Business School, UK
Heeyoung Yoon, New York University, USA

Read More

Featured

Growing Up Rich and Insecure Makes Objects Seem Human: Childhood Material and Social Environments Predict Anthropomorphism

Jodie Whelan, York University, Canada
Sean T. Hingston, York University, Canada
Matthew Thomson, Western University, Canada
Allison R. Johnson, Western University, Canada

Read More

Engage with Us

Becoming an Association for Consumer Research member is simple. Membership in ACR is relatively inexpensive, but brings significant benefits to its members.