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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 Authors

Elizabeth A. Keenan

Marketing
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Leslie K. John

Negotiation, Organizations & Markets
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  • A Randomized Trial of Behavioral Nudges Delivered through Text Messages to Increase Influenza Vaccination among Patients with an Upcoming Primary Care Visit By: Mitesh S. Patel, Katherine L. Milkman, Linnea Gandhi, Heather N. Graci, Dena Gromet, Hung Ho, Joseph S. Kay, Timothy W. Lee, Jake Rothschild, Modupe Akinola, John Beshears, Jonathan E. Bogard, Alison Buttenheim, Christopher Chabris, Gretchen B. Chapman, James J. Choi, Hengchen Dai, Craig R. Fox, Amir Goren, Matthew D. Hilchey, Jillian Hmurovic, Leslie John, Dean Karlan, Melanie Kim, David Laibson, Cait Lamberton, Brigitte C. Madrian, Michelle N. Meyer, Maria Modanu, Jimin Nam, Todd Rogers, Renante Rondina, Silvia Saccardo, Maheen Shermohammed, Dilip Soman, Jehan Sparks, Caleb Warren, Megan Weber, Ron Berman, Chalanda N. Evans, Seung Hyeong Lee, Christopher K. Snider, Eli Tsukayama, Christophe Van den Bulte, Kevin G. Volpp and Angela L. Duckworth
  • Calculators for Women: When Identity-Based Appeals Backfire By: Tami Kim, Kate Barasz, Michael I. Norton and Leslie K. John
  • Fostering Perceptions of Authenticity via Sensitive Self-Disclosure By: Li Jiang, Leslie K. John, Reihane Boghrati and Maryam Kouchaki
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