Donations to Charity as Purchase Incentives: How Well They Work May Depend on What You are Trying to Sell
13 Pages Posted: 19 Dec 2010
Date Written: 1998
This article focuses on the bundling of products with promised contributions to charity. Two lab experiments and one field study are conducted that compare the effectiveness of promised donations to charity in promoting ‘‘practical necessities’’ ( e.g., a box of laundry detergent) to their effectiveness in promoting ‘‘frivolousluxuries’’ ( e.g., a hot fudge sundae) . The results suggest that charity incentivesare more effective in promoting frivolous products than in promoting practical products. This research extends prior work on the effects of bundling complementary positive outcomes into the domain of affect-based complementarity with product-charity bundles.
Keywords: product bundling, affect-based complementarity, product-charity bundles
JEL Classification: M31, M37
Suggested Citation: Suggested Citation