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Adding exchange to charity: a reference price explanation
Briers, Barbara Pandelaere, Mario Warlop, Luk
Briers, Barbara
Pandelaere, Mario
Warlop, Luk
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Publication Type
Journal article with impact factor
Editor
Supervisor
Publication Year
2007
Journal
Journal of Economic Psychology
Book
Publication Volume
28
Publication Issue
1
Publication Begin page
15
Publication End page
30
Publication NUmber of pages
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Abstract
Charities often request donations while offering a near-worthless token, like a key chain, in exchange. Little research has examined whether such ‘exchange’ requests are met with higher compliance rates than simply asking people to donate. Our studies suggest that in simple donation settings people may have difficulties in estimating a socially acceptable donation amount and therefore prefer opportunities that provide them with an anchor price. The value of a material good in a donation setting can play this anchoring role and signal a reference price. To the extent that the suggested reference price is low enough, exchange requests lead to more compliance than simple donation requests. However, our results indicate that, when accompanied by specified amounts, simple donation requests result in even better compliance rates than exchange requests.
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Journal Issue
Keywords
Fund-Raising, Donation Behavior, Exchange, Reference Price, Anchor