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The effectiveness of donation promises in charity auctions as a cause-related marketing strategy

Faculty Advisor




donation, cause-related marketing, charity auction revenue

Abstract (summary)

A donation promise is the amount the seller will donate in a cause-related marketing (CRM) transaction. As CRM campaigns increase in popularity, donation promises serve as a competitive attribute between products. Thus determining how consumers perceive and respond to varying donation promises becomes important. This study examines the relationship between donation promises and charity auction revenue. Results of three controlled field experiments indicate that higher donation promises lead to increased selling prices ,although at a diminishing rate. Furthermore, relative donation promises serve as a comparison frame and contrast to a target donation promise. Low to medium levels of donation promises incur significant overpayments, suggesting that sellers can profit from their charitable associations. Overall results have important implications for the relative appeal of CRM offerings in a fixed-price setting and suggest that charity auctions are a cost-effective part of a corporate social responsibility strategy.

Publication Information

Leo Wong and Peter Popkowski Leszczyc (2011) ,"The Effectiveness of Donation Promises in Charity Auctions As a Cause-Related Marketing Strategy", in AP - Asia-Pacific Advances in Consumer Research Volume 9, eds. Zhihong Yi, Jing Jian Xiao, and June Cotte and Linda Price, Duluth, MN : Association for Consumer Research, Pages: 296-297.



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