‘Tis Better to Give than to Receive? How and When Gender and Residence-Based Segments Predict Choice of Donation versus Discount-Based Promotions

Abstract

Donation promotions that tie product purchase to charitable contributions are common in the marketplace. Yet little is known about the sensitivity of different consumer segments to such promotions, particularly relative to traditional discount-based promotions. To address this void, the authors consider the extent to which consumers in traditional demographic segments based on gender and residence vary in their propensity to choose donation versus discount promotions. An experiment along with a field study using in-market data show that female and rural consumers exhibit higher choice probabilities for donation promotions than male and urban consumer segments. The experimental results also demonstrate that interdependence, at least in part, underlies the effect of these demographic and geographic segmentation variables on promotion choice. In addition to providing new theoretical insights involving interdependence and promotion choice, these results offer pragmatic guidance for managers targeting donation versus discount promotions to various consumer segments.

Keywords: promotions, donations, segmentation, interdependence, gender, residence, cause-related marketing