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  • March 2022
  • Article
  • Marketing Letters

When Less Is More: Consumers Prefer Brands that Donate More in Relative versus Absolute Terms

By: Elizabeth A. Keenan, Anne V. Wilson and Leslie K. John
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Abstract

When trying to make a good impression on consumers through charitable giving, is it better for brands to maximize the overall dollars they donate or how much they give in relative terms; for example, the proportion of profits? Across five studies we show that consumers prefer a brand that donates less in absolute dollars, if it reflects a higher proportion of profits, compared to a brand that donates more money overall, when it reflects a smaller proportion of profits. This preference emerges because consumers use the relative size of the donation as a stronger indicator of the brand’s generosity than the absolute dollar amount. The effect persists even when firms make a smaller amount of money seem more generous (i.e., seem larger in relative terms) than a larger amount by condensing the timeframe of a donation.

Keywords

Cause-related Marketing; Charitable Donations; Generosity; Altruism; Philanthropy and Charitable Giving; Brands and Branding; Consumer Behavior

Citation

Keenan, Elizabeth A., Anne V. Wilson, and Leslie K. John. "When Less Is More: Consumers Prefer Brands that Donate More in Relative versus Absolute Terms." Marketing Letters 33, no. 1 (March 2022): 31–43.
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About The Author

Leslie K. John

Negotiation, Organizations & Markets
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  • Measuring the Prevalence of Sensitive Behaviors By: Tamar Krishnamurti and Leslie John
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