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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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  • Reaching for Rigor and Relevance: Better Marketing Research for a Better World By: Shilpa Madan, Gita Venkataramani Johar, Jonah Berger, Pierre Chandon, Rajesh Chandy, Rebecca Hamilton, Leslie John, Aparna Labroo, Peggy J. Liu, John G. Lynch, Nina Mazar, Nicole Mead, Vikas Mittal, Christine Moorman, Michael I. Norton, John Roberts, Dilip Soman, Madhu Viswanathan and Katherine White
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