Rounding up for a cause: The joint effect of donation type and crowding on donation likelihood

Yoo Hee Hwang, Sungwoo Choi, Anna S. Mattila

Research output: Contribution to journalArticlepeer-review

Abstract

Prior research demonstrates that consumers are more likely to donate when asked to round up their total bill to the next whole dollar (vs. donate a flat-dollar amount). However, there is scant research demonstrating boundary conditions for the effectiveness of round-up donations. The purpose of this study is to fill this knowledge gap by suggesting crowding level of a service establishment as a boundary condition. Study 1 demonstrates that round-up (vs. flat-dollar) donations decrease perceived pain of donation, thereby increasing donation likelihood. Study 2 shows that round-up (vs. flat-dollar) donations decrease pain of donation in a crowded environment. Conversely, such differences in pain of donation are not observed in a non-crowded environment. The present study contributes to the nascent literature on round-up donations and provides insight to cause-related marketing managers concerning how to design donation messages.

Original languageEnglish (US)
Article number102779
JournalInternational Journal of Hospitality Management
Volume93
DOIs
StatePublished - Feb 2021

All Science Journal Classification (ASJC) codes

  • Tourism, Leisure and Hospitality Management
  • Strategy and Management

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