The demand for products linked to public goods: Evidence from an online field experiment
AbstractWe conduct a field experiment at a nonprofit organization's online store to study how demand changes when consumers' purchases can generate revenue for a charitable cause. When purchases can trigger a small donation by an outside anonymous group, consumers respond strongly and apparently without regard for the specific conditions that trigger the donation. Consumers respond similarly when the outside donation requires a personal donation which consumers generally decline. When the outside donations are relatively large, however, consumers appear to pay close attention to the trigger conditions, and increase their purchases only where needed to generate the outside donation. Overall, increasing the salience of financial incentives weakens consumers' positive responses to the outside group's donation pledges. We also present evidence that the donation pledges have positive long-term effects on demand and may reduce price sensitivity.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Public Economics.
Volume (Year): 95 (2011)
Issue (Month): 5 ()
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Web page: http://www.elsevier.com/locate/inca/505578
Field experiments; Nonprofit organizations; Corporate social responsibility; E-commerce;
Find related papers by JEL classification:
- C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
- D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy
- L30 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - General
- M14 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Corporate Culture; Social Responsibility
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