November 2015
Article
Organizational Behavior and Human Decision Processes

When Doing Good Is Bad in Gift-giving: Mis-predicting Appreciation of Socially Responsible Gifts

By: Lisa A. Cavanaugh, F. Gino and Gavan J. Fitzsimons

Format:Print

Abstract

Gifts that support a worthy cause (i.e., "gifts that give twice"), such as a charitable donation in the recipient's name, have become increasingly popular. Recipients generally enjoy these gifts, which not only benefit others in need but also make recipients feel good about themselves. But do givers accurately predict appreciation of these types of gifts? Across three studies, we show that gift givers mis-predict appreciation for socially responsible gifts and that their mis-predictions depend on the nature of their relationship to the recipient. Drawing on research on affective forecasting and perspective taking, we propose and find that givers overestimate how much distant others appreciate socially responsible gifts because they focus more than recipients on the symbolic meaning of the gift. Critically, givers have the most to gain from distant others, in terms of strengthened relationship quality, by making better gift choices.