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

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.