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Cause-related marketing (CRM) is an increasing popular marketing strategy in which a firm donates a specific amount to a designed cause when customers engage in revenue-providing exchanges. Based on balance and attribution theory, this paper aims to explore the interaction effect of donation amount and ad orientation, two important factors of formulation and communication of CRM, respectively, on consumer response and the mediating effect of consumers’ perceived company motives.

Two 2 (donation amount: small vs large) × 2 (ad orientation: product- vs cause-oriented) between-subjects experimental studies were conducted in marketing course with 284 and 157 Chinese undergraduate students participating in Studies 1 and 2, respectively. ANOVA and regression were used to test the hypotheses.

Study 1 shows the significant interaction effects of donation amount and ad orientation on consumers’ response. When CRM has a large donation amount, cause-oriented (vs product-oriented) ad leads to consumers’ more positive company attitude and higher purchase intention. The opposite is true for the small donation amount condition. Study 2 shows that the above interaction effect is mediated by consumer-attributed company motives. The attributed motive of sincerely caring about social cause has significant positive effect on consumer response, whereas the attributed motive of increasing sales or improving corporate image does not.

This paper contributes to the literature by empirically examining the interaction effect of donation amount and ad orientation on consumer-inferred motives and behavioral response. The findings are valuable because they indicate the importance of matching between factors at formulation and communication stage. In addition, this paper found that consumers are “tolerant” of companies using CRM to promote product sales and improve brand image.

Charities depend on giving behaviors of organizations to fulfil their purpose, whereas corporations seek to improve their image in return. Accordingly, the purpose of this research is to investigate optimal donation thresholds for organizations to enhance their corporate social responsibility (CSR) image.

Experiment 1 (N = 482) tests whether CSR image improves with donation amount up to the point at which it becomes excessive (H1) and whether this point differs between firms in a positive versus negative economic situation (H2). Experiment 2 (N = 432) examines the role of consumer attribution of firm motives through mediation of these effects (H3), while also exploring consumer donation expectations by testing an “undefined” amount. Experiment 3 (N = 400) validates the role of attributions through the moderating effect of motives.

The experiments demonstrate an optimal interval between inferior and superior donation amounts that maximize the impact of corporate giving on CSR image through the attribution of society-serving motives. Furthermore, the economic situation of the company alters these thresholds – higher donations are required to positively influence the CSR image when the company is in a favorable situation.

This research answers a long-term call to provide more reliable tools on which to base charitable giving decisions. It also identifies perceived donating motives as the psychological process underlying consumers’ response to donation magnitudes.

The authors determine psychological donation thresholds by examining amounts perceived as insignificant in comparison to excessive and provide managers with an easy-to-implement method to determine optimal donation amounts from their target market.

By examining charitable giving at the micro-level, this research provides practical advice to companies on how to determine, ahead of time, how much to donate and what exactly to communicate in which economic situation.

Cause-related marketing (CRM) is a sales strategy that is used to improve the success of a product by including a donation to a charitable cause in its price. While marketers can present CRM donations to consumers as either absolute amounts or percentages, the predominant practice in marketing is to use the latter. As the influence of such presentation formats is not well understood, the purpose of this paper is to systematically examine their effects while taking into account the numerical ability (numeracy) of the consumers.

In two experiments, the presentation format of the donation amounts (absolute vs percentage) were manipulated and individual differences in numeracy were measured. The product type (hedonic vs utilitarian) and sales price were varied. We found this effect for high and low price levels and for hedonic and utilitarian products.

The results of both experiments consistently supported the hypothesis presented in this paper that for people with lower numeracy, their purchase intentions were higher when absolute donation amounts were presented. We found this effect for high and low price levels and for hedonic and utilitarian products.

The present paper shows that the current practice of presenting donations in percentages is inferior to presenting donations in absolute amounts because a large number of consumers have trouble interpreting percentages appropriately. Therefore, it indicates that the default option for marketing managers should be to present donations in absolute amounts for hedonic and utilitarian products with low and high prices.

The purpose of this study is to investigate whether a U-shaped relationship exists between the length of time a donor has been a regular member in a nonprofit organization and the amount donated over time. In addition, this research analyzes whether this relationship is moderated by donation frequency.

Using a database of 6,137 members from a collaborating nonprofit organization, a longitudinal study is conducted over an eight-year period (2013–2020). A set of ordinary least square (OLS) regression analyses are carried out to empirically test the proposed hypotheses.

This study finds a nonlinear, U-shaped relationship between donation amount and relationship length. This effect can be explained through the dynamic evolution of two dimensions of commitment: affective (decreasing over time) and normative (increasing over time). The results also reveal that these effects, however, become flatter for members who engage in more frequent donations.

The results provide novel insights revealing the nonlinear nature of the relationship between the length of time a donor has been a member of a nonprofit organization and the amount donated, and underscores the moderating role of donation frequency, which makes the U-shaped relationship flatter, thus increasing the amounts donated. Despite their relevance in the service ecosystem, nonprofits have been under-represented in prior work. This study offers important practical insights into the effective management of the regular donor portfolio.

Taking advantage of the 2008 Sichuan Great Earthquake as a natural experiment, the purpose of this paper is to examine the motives and effects of corporate donations by focusing on how firm ownership identity as the first-order governance mechanism affects the motives and effects of disaster relief donations.

The authors conduct regressions and market event studies, and use matching to address the confounding effects of differences in firm characteristics.

The authors hypothesize that private firms that are better governed than state-owned enterprises (SOEs) are more likely to donate for value maximization. Consistent with this, the authors find that private firms are more likely to donate to the 2008 Sichuan earthquake and donate more than SOEs. The effects of secondary governance variables in the donation determinant models (e.g. board independence and managerial ownership) are more consistent with the value maximization argument. While short-term market reaction to donation announcement is not significant for private firms, it is lower when SOEs make a large donation. Consistent with the hypothesis, the authors find that over the 24–36 months following the donation, private donors realize a higher abnormal stock return.

The study contributes to the debate over the merits/costs of corporate donations and helps better understand how SOEs and private firms (particularly family-owned firms) differ in their governance and financial decision-making.

Both managers from private firms and SOEs can use the findings of this study to better guide their donation and other philanthropic decisions.

This study is the first to examine both the motives and effects of corporate donations by both private and SOEs taking advantage of the 2008 Sichuan, thereby significantly extending prior related studies.

While luxury brands have increasingly pursued CSR activities such as corporate donations, this strategy may not be effective because there is an inherent mismatch between the concepts of “luxury” and CSR. The present research examines the effects of different types of donation strategies (frequency-focused vs. amount-focused).

Two experimental studies were conducted. Study 1 provides initial evidence to our prediction that a frequency-focused strategy is beneficial for luxury (vs. non-luxury) brands to leverage their positive brand evaluations. Study 2 further replicates this using a different brand and establishes the underlying mechanism.

Findings show that a frequency-focused strategy is beneficial for luxury (vs. non-luxury) brands to leverage their positive brand evaluations. This is because a frequency-focused strategy makes consumers perceive the luxury brand's commitment to help, which in turn reduces consumers’ skepticism toward their CSR activities.

The study illustrates a novel mechanism that shows when and how different corporate donations influence luxury brand evaluations.

This paper aims to investigate whether and how better corporate governance practices can lead to philanthropic behavior among companies in the UK. In particular, this study attempts to determine whether corporate governance quality in general, as well as its specific mechanisms, affects corporate giving.

The analysis is based on a sample of Financial Times Stock Exchange All-Share nonfinancial companies. Data on firm donations, including donations amount and donations intensity, were manually collected from companies’ annual reports for the period 2018–2020. This paper uses panel data models to examine the research hypotheses.

The results of this study indicate that both donations amount and donations intensity are positively associated with the practice of better corporate governance. Board independence is positively associated with donations amount, but not with the intensity of donations. Furthermore, board size, board gender diversity and the establishment of a corporate social responsibility (CSR) committee are likely to have a positive impact on the amount and the intensity of firms’ donations. However, neither the chief executive officer board membership nor the audit committee’s independence is related to the firm’s donations.

This study sheds light on specific governance factors that affect firm donations in the context of UK companies. This allows regulators and legislators to evaluate the donations activities in the country and issue more directives to reinforce corporate governance practices that support corporate donations. In addition, the findings of this study are considered crucial to investors who prefer investing in companies with significant CSR-related activities to improve the value relevance of their investments.

This study provides a shred of unique evidence on the impact of corporate governance practices on firms’ donations.

This paperaims to investigate a novel expectation by examining how framing a company as its constituent members (members frame) versus an organization (organization frame) can influence consumer evaluations of a product or service from this company.

Four studies were conducted examining the effectiveness of an organization (vs members) frame in a between-subjects experimental design (a pilot study, Studies 1a, 1b and 2). Study 2 also tested the moderating role of donation strategies (amount-focused vs frequency-focused).

Results show a members (vs organization) frame leads to a higher purchase likelihood of a product from a company engaging in corporate donations. Further, this framing effect is mediated by increased levels of consumers’ perceptions about how committed the company is to the cause and the emotion of moral elevation in response to the company’s corporate donations. Moreover, this effect is moderated when the company uses a frequency-based (vs amount-based) donation strategy.

This research contributes to the literature on message framing by demonstrating how the same information about a company may lead to differential effects on consumer evaluations, depending on whether the company is framed as its constituent members versus an organization.

This paper presents significant managerial implications for small companies, in which the owner is the company, about how they can effectively communicate corporate donations to the consumers.

This research provides a novel perspective on how the same information about a company may lead to differential effects on consumer evaluations, particularly in the context of corporate donations.

This paper aims to use a negative perspective to investigate the effects of perceived deceptiveness and pressure on consumer donation and their underlying mechanisms in the context of asking for donations.

Study 1 used a qualitative approach to clarify the categories and dimensions of the research variables and explore their relationships. Study 2 empirically tested the hypotheses by combining a fictitious context and a real context related to asking for donations.

In the qualitative study, the data provided sufficient evidence to support the relationships in the theoretical model. The results of the empirical study showed that perceived deceptiveness negatively influences consumer donation, while perceived pressure positively affects donation amount. Notably, the discomfort of potential donors plays an important role in mediating these relationships.

This paper suggests a way for charities to raise more money, i.e. by cooperating with companies with good reputations, limited scandals and transparent supervisory mechanisms. Meanwhile, solicitors should pay attention to the adverse effects of discomfort to avoid generating resentment among consumers.

First, to the best of the authors’ knowledge, this is the first study to use a negative perspective to examine the effects of perceived deceptiveness and pressure on consumer donation. Second, the use of cognitive dissonance theory to highlight the role of discomfort represents a novel contribution to the literature. Third, using a mixed-methods approach to achieve a robust conclusion provides valuable insights and extends the existing literature.

Extant research shows mixed results on the impact of expressed negative emotions on donations in online charitable crowdfunding. This study solves the puzzle by examining how different types of negative emotions (i.e. sadness, anxiety and fear) expressed in crowdfunding project descriptions affect donations.

Data on 15,653 projects across four categories (medical assistance, education assistance, disaster assistance and poverty assistance) from September 2013 to May 2019 come from a leading online crowdfunding platform in China. Text analysis and regression models serve to test the hypotheses.

In the medical assistance category, the expression of sadness has an inverted U-shaped effect on donations, while the expression of anxiety has a negative effect. An appropriate number of sadness words is helpful but should not exceed five times. In the education assistance and disaster assistance categories, the expression of sadness has a positive effect on donations, but disclosure of anxiety and fear has no influence on donations. Expressions of sadness, anxiety and fear have no impact on donations in the poverty assistance category.

This work has important implications for fundraisers on how to regulate the fundraisers' expressions of negative emotions in a project's description to attract donations. These insights are also relevant for online crowdfunding platforms.

Online crowdfunding research often studies negative emotions as a whole and does not differentiate project types. The current work contributes by empirically testing the impact of three types of negative emotions on donations across four major online crowdfunding categories.