Warm Glow or Cold,Hard Cash? Social Identity Effects on Consumer Choice for Donation versus Discount Promotions

Abstract

Across five studies, the authors investigate how social identification influences consumer preference for discount-based promotions (i.e., cents-off deals) versus donation-based promotions (in which purchase results in a donation to a charitable cause). In doing so, they demonstrate the interplay between self-construal and a specific social identity (i.e., that associated with the particular charity featured in a donation-based promotion) on consumers' preferences for these two types of promotions. The results show that, in general, consumers possessing interdependent self-construals prefer donations to a greater extent than those with independent self-construals. However, the findings further indicate that these effects of self-construal are attenuated if (1) the donation-based promotion does not involve a charity that is identity congruent or (2) a cause-congruent identity is more salient than self-construal at the time of decision making. The authors also identify boundary conditions of charity efficiency and product type for these self-construal effects. In addition to demonstrating how multiple identities interact to influence consumer promotion preferences, the authors discuss important managerial implications regarding the use of discount versus donation-based promotions.