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 generate revenue for a charitable cause. Consumers respond strongly when their purchases generate small donations by an anonymous outside group, but responses are substantially weaker when the outside donations are relatively large. Responses are also strong when the outside donation requires a personal donation which consumers generally decline. Overall, increasing the salience of financial incentives appears to dampen consumers’ responses to charitable messages. We also present evidence that the donation pledges reduce price sensitivity and have positive long-term effects on demand.
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Bibliographic InfoPaper provided by NET Institute in its series Working Papers with number 08-28.
Length: 36 pages
Date of creation: Oct 2008
Date of revision: Oct 2008
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Web page: http://www.NETinst.org/
Field Experiments; Charity-Linked Products; 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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