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.
All Science Journal Classification (ASJC) codes
- Tourism, Leisure and Hospitality Management
- Strategy and Management