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EMAC 2024 Annual


Marketing for Social Good: The Impact of Incentives on Donation Behavior
(A2024-118643)

Published: May 28, 2024

AUTHORS

Hans Risselada, University of Groningen; Pascal Güntürkün, Vienna University of Economics and Business; Jacob Schjødt, Copenhagen Business School; Antonia Leisse, Universität Hamburg

ABSTRACT

The nonprofit sector fulfills an important social function and has an economic weight of more than 500 billion US dollars in the USA alone (Giving USA, Annual Report 2022). However, with increasing global competition among nonprofits and the erosion of traditional giving-motives due to demographic changes, there is a need for a better understanding of how nonprofit organizations can use marketing mechanisms and activities to improve donor recruitment and retention (Chandy et al. 2021). This special session will highlight and advance the ongoing debate around whether and how nonprofit organizations should use incentives to increase donor behavior. “The Effectiveness of Donor Marketing: A Meta-Analysis of Donation Behavior” by Jacob Schjødt, Edlira Shehu, and Tammo Bijmolt analyzes the effects of marketing activities on (real-world) donation behavior in a thorough meta-analysis of the existing literature to provide generalizable insights on how nonprofit organizations should shape their donor communication activities to enhance donation behavior. The study identifies factors related to content, communication strategy and recipient that drive the effectiveness of marketing activities, as well as boundary conditions, and quantifies their effect on donation behavior. “Strengthening Incentive Strategies for Plasma Donation Collection” by Antonia Leiße, Besarta Veseli, Michel Clement studies the effectiveness of different incentive strategies in the context of blood and plasma donation across four different countries (Germany, Austria, France, the Netherlands). It reveals that non-financial incentives, such as health checks, are seen as unanimously positive to attract donations while the appeal of monetary incentives depends on the plasma collection model (centralized vs. decentralized plasma collection) and incentive portfolio (monetary vs. non-monetary; basic vs. advanced incentive portfolio) donors are used to . “Promises and Pitfalls of Charity Lotteries: The Role of Donor History” by Hans Risselada, Sven Mikolon, Pascal Güntürkün studies how integrating lottery campaigns in a fundraising portfolio affects donor retention and repeat giving using a rich longitudinal data set. Intriguingly, the results reveal differential effects of lottery campaign participation depending on donor history (i.e., prior contribution sums), such that lotteries improve retention rates and relationship growth among donors that gave a lot in the past but can be harmful for relationship development of donors that gave little in the past. “The Effect of Personalized Impact Feedback on Social Media Sharing and New Donor Acquisition: A Field Experiment at the Red Cross” by Pascal Güntürkün, Nils Wlömert, Martin Schreier advances knowledge on how charities can use cost-efficient informational incentives to motivate their existing donor base to promote the cause on social media and thereby attract new donors. The results of a 6-month-long field experiment show that providing donors with personalized impact feedback is an effective strategy to reach these goals, and that this approach is particularly effective in elevating sharing and new donor recruitment rates among novel (vs. existing) donors.