Risky Business: the Risk-Reward Trade-Off Is Different For Nonprofit and For-Profit Firms
We find that consumers penalize nonprofits that choose a risky (but high expected value) option over a certain (but low expected value) option, however, they do not similarly penalize for-profit companies that choose the same risk. This pattern occurs because risk-taking activates paternalistic attitudes toward nonprofit organizations, decreasing support.
Citation:
Rachel Gershon, Cynthia Cryder, and Merriah Croston (2019) ,"Risky Business: the Risk-Reward Trade-Off Is Different For Nonprofit and For-Profit Firms", in NA - Advances in Consumer Research Volume 47, eds. Rajesh Bagchi, Lauren Block, and Leonard Lee, Duluth, MN : Association for Consumer Research, Pages: 93-98.
Authors
Rachel Gershon, University of California San Diego, USA
Cynthia Cryder, Washington University, USA
Merriah Croston, Washington University, USA
Volume
NA - Advances in Consumer Research Volume 47 | 2019
Share Proceeding
Featured papers
See MoreFeatured
Believing in and Reacting to Rumors: The Role of Congruity and Nature of Existing Predisposition
Satadruta Mookherjee, SUNY Binghamton, USA
Subimal Chatterjee, SUNY Binghamton, USA
Featured
Can Making Family Salient Improve Retirement Contributions? Evidence from Field Experiments in Mexico
Avni Shah, University of Toronto, Canada
Matthew Osborne, University of Toronto, Canada
Jaclyn Lefkowitz, IDEAS42
Andrew Fertig, IDEAS42
Dilip Soman, University of Toronto, Canada
Nina Mazar, Boston University, USA
Featured
I6. How Does Runner’s World Shape a Runner’s World? Understanding Representations of the “Ideal” Female Body in Fitness Advertising
Carly Drake, University of Calgary, Canada
Scott Radford, University of Calgary, Canada