IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v48y2019icp1-6.html

Got a dollar? Locomotion orientation decreases the effect of defaults on charitable giving

Author

Listed:
  • Crow, Kellie
  • Mathmann, Frank
  • Greer, Dominique

Abstract

As retailers seek to enhance their fundraising capabilities at the checkout, many are debating whether to pair their donation appeals with default options. However, research on the effectiveness of defaults remains conflicted and individual differences among consumers are largely ignored. Addressing this, an experiment was conducted to demonstrate that individual differences in locomotion, a motivation for control in decision-making, impacts the acceptance of defaults, and thus actual donations. Low locomotion was found to increase donations in the presence of defaults. This finding allows marketers to better target customers with defaults in donation appeals and achieve greater fundraising success.

Suggested Citation

  • Crow, Kellie & Mathmann, Frank & Greer, Dominique, 2019. "Got a dollar? Locomotion orientation decreases the effect of defaults on charitable giving," Journal of Retailing and Consumer Services, Elsevier, vol. 48(C), pages 1-6.
    • Handle: RePEc:eee:joreco:v:48:y:2019:i:c:p:1-6
    DOI: 10.1016/j.jretconser.2018.12.015
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698918308439
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretconser.2018.12.015?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Indranil Goswami & Oleg Urminsky, 2016. "When should the ask be a nudge? The Effect of Default Amounts on Charitable Donations," Natural Field Experiments 00659, The Field Experiments Website.
    2. John Beshears & James J. Choi & David Laibson & Brigitte C. Madrian, 2009. "The Importance of Default Options for Retirement Saving Outcomes: Evidence from the United States," NBER Chapters, in: Social Security Policy in a Changing Environment, pages 167-195, National Bureau of Economic Research, Inc.
    3. Lenka Fiala & Charles N. Noussair, 2017. "Charitable Giving, Emotions, And The Default Effect," Economic Inquiry, Western Economic Association International, vol. 55(4), pages 1792-1812, October.
    4. Johnson, Eric J & Hershey, John & Meszaros, Jacqueline & Kunreuther, Howard, 1993. "Framing, Probability Distortions, and Insurance Decisions," Journal of Risk and Uncertainty, Springer, vol. 7(1), pages 35-51, August.
    5. Nikhil Dhingra & Zach Gorn & Andrew Kener & Jason Dana, 2012. "The default pull: An experimental demonstration of subtle default effects on preferences," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 7(1), pages 69-76, January.
    6. Henrik Cronqvist & Richard H. Thaler, 2004. "Design Choices in Privatized Social-Security Systems: Learning from the Swedish Experience," American Economic Review, American Economic Association, vol. 94(2), pages 424-428, May.
    7. Mathmann, Frank & Chylinski, Mathew & de Ruyter, Ko & Higgins, E. Tory, 2017. "When Plentiful Platforms Pay Off: Assessment Orientation Moderates the Effect of Assortment Size on Choice Engagement and Product Valuation," Journal of Retailing, Elsevier, vol. 93(2), pages 212-227.
    8. Jeffrey R. Brown, 2009. "Comment on "The Importance of Default Options for Retirement Saving Outcomes: Evidence from the United States"," NBER Chapters, in: Social Security Policy in a Changing Environment, pages 195-198, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Septianto, Felix & Tjiptono, Fandy, 2019. "The interactive effect of emotional appeals and past performance of a charity on the effectiveness of charitable advertising," Journal of Retailing and Consumer Services, Elsevier, vol. 50(C), pages 189-198.
    2. Lemken, Dominic, 2020. "When do defaults stick and when are they ethical? Taxonomy, sytematic review and design recommendations," DARE Discussion Papers 2005, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    3. Rita Abdel Sater, 2021. "Essays on the application of behavioural insights to environmental policy [Essais sur l’application des connaissances comportementales aux politiques environnementales]," SciencePo Working papers tel-03450909, HAL.
    4. Chang, Kuo-Chien & Hsu, Chia-Lin & Hsu, Ya-Ti & Chen, Mu-Chen, 2019. "How green marketing, perceived motives and incentives influence behavioral intentions," Journal of Retailing and Consumer Services, Elsevier, vol. 49(C), pages 336-345.
    5. Zheng, Chundong & Liu, Xinru & Liu, Shuqin, 2024. "How to make busy individuals donate more? The matching effect of charitable appeals and busyness on willingness to donate," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).
    6. Rita Abdel Sater, 2021. "Essays on the application of behavioural insights to environmental policy [Essais sur l’application des connaissances comportementales aux politiques environnementales]," Sciences Po Economics Publications (main) tel-03450909, HAL.
    7. Li, Mengyi & Ma, Qin-hai, 2022. "“Do not impose on others what you desire.†Research on the influence of service Personnel's interactive orientation on customer comfort," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    8. Collinson, Jeremy & Mathmann, Frank & Chylinski, Mathew, 2020. "Time is money: Field evidence for the effect of time of day and product name on product purchase," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).
    9. Lemken, Dominic, "undated". "When do defaults stick and when are they ethical? - taxonomy, systematic review and design recommendations," Key Food Choices and Climate Change Project 307568, Georg-August-Universitaet Goettingen, Department of Agricultural Economics and Rural Development.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jaehyeon Ju & Daegon Cho & Jae Kyu Lee & Jae‐Hyeon Ahn, 2021. "Can It Clean Up Your Inbox? Evidence from South Korean Anti‐spam Legislation," Production and Operations Management, Production and Operations Management Society, vol. 30(8), pages 2636-2652, August.
    2. van Rooij, Maarten & Teppa, Federica, 2014. "Personal traits and individual choices: Taking action in economic and non-economic decisions," Journal of Economic Behavior & Organization, Elsevier, vol. 100(C), pages 33-43.
    3. Cox, James C. & Kreisman, Daniel & Dynarski, Susan, 2020. "Designed to fail: Effects of the default option and information complexity on student loan repayment," Journal of Public Economics, Elsevier, vol. 192(C).
    4. Keane, M.P. & Thorp, S., 2016. "Complex Decision Making," Handbook of the Economics of Population Aging, in: Piggott, John & Woodland, Alan (ed.), Handbook of the Economics of Population Aging, edition 1, volume 1, chapter 0, pages 661-709, Elsevier.
    5. Moseley, Alice & Stoker, Gerry, 2013. "Nudging citizens? Prospects and pitfalls confronting a new heuristic," Resources, Conservation & Recycling, Elsevier, vol. 79(C), pages 4-10.
    6. Timmons, Shane & McGowan, Féidhlim P. & Lunn, Peter D., 2019. "Setting defaults for online banking transactions: Experimental evidence from personal loan repayment terms," Journal of Behavioral and Experimental Finance, Elsevier, vol. 23(C), pages 161-165.
    7. Jia Liu & Yohanes E. Riyanto, 2017. "The limit to behavioral inertia and the power of default in voluntary contribution games," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 48(4), pages 815-835, April.
    8. Stefano DellaVigna, 2009. "Psychology and Economics: Evidence from the Field," Journal of Economic Literature, American Economic Association, vol. 47(2), pages 315-372, June.
    9. Haoyang Yan & J. Frank Yates, 2019. "Improving acceptability of nudges: Learning from attitudes towards opt-in and opt-out policies," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 14(1), pages 26-39, January.
    10. Silverman, Dan & Slemrod, Joel & Uler, Neslihan, 2014. "Distinguishing the role of authority “in” and authority “to”," Journal of Public Economics, Elsevier, vol. 113(C), pages 32-42.
    11. Robert A. Pollak, 2016. "Marriage Market Equilibrium," NBER Working Papers 22309, National Bureau of Economic Research, Inc.
    12. Hazel Bateman & Christine Eckert & Fedor Iskhakov & Jordan Louviere & Stephen Satchell & Susan Thorp, 2017. "Default and naive diversification heuristics in annuity choice," Australian Journal of Management, Australian School of Business, vol. 42(1), pages 32-57, February.
    13. Basu, Anup K. & Drew, Michael E., 2010. "The appropriateness of default investment options in defined contribution plans: Australian evidence," Pacific-Basin Finance Journal, Elsevier, vol. 18(3), pages 290-305, June.
    14. Indranil Goswami & Oleg Urminsky, 2016. "When should the ask be a nudge? The Effect of Default Amounts on Charitable Donations," Natural Field Experiments 00659, The Field Experiments Website.
    15. Liu, Jia & Sonntag, Axel & Zizzo, Daniel John, 2022. "Information defaults in repeated public good provision," Journal of Economic Behavior & Organization, Elsevier, vol. 197(C), pages 356-369.
    16. Francisco Gomes & Michael Haliassos & Tarun Ramadorai, 2021. "Household Finance," Journal of Economic Literature, American Economic Association, vol. 59(3), pages 919-1000, September.
    17. Kevin X.D. Huang & Frank Caliendo, 2007. "Rationalizing Seven Consumption-Saving Puzzles in a Unified Framework," Vanderbilt University Department of Economics Working Papers 0716, Vanderbilt University Department of Economics.
    18. Manja Gärtner & Anna Sandberg, 2017. "Is there an omission effect in prosocial behavior? A laboratory experiment on passive vs. active generosity," PLOS ONE, Public Library of Science, vol. 12(3), pages 1-21, March.
    19. Bruno Ferman, 2016. "Reading the Fine Print: Information Disclosure in the Brazilian Credit Card Market," Management Science, INFORMS, vol. 62(12), pages 3534-3548, December.
    20. Robert French & Philip Oreopoulos, 2017. "Applying behavioural economics to public policy in Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 50(3), pages 599-635, August.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joreco:v:48:y:2019:i:c:p:1-6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.