This research shows that price promotions can increase consumers’ perceived resources, which in turn increase consumers’ donation behavior. This research also examines several managerially relevant factors that can affect the magnitude of this positive effect of price promotions on consumers’ donation behavior. Explaining the success of the recent Giving Tuesday movement, this research shows that charitable organizations can benefit the most when they solicit donations immediately after the price promotions. The collaboration between firms and charitable organizations can create a win-win situation that benefit both stakeholders and contribute to a better world.

1. Do Promotions Make Consumers
More Generous?
The Impact of Price Promotions on Consumers’ Donation Behavior
From: Zhang, Cai, and Shi (2021)

2. Price Promotion Events
• Price promotion events are criticized for promoting consumerism and
materialism.
• Can price promotions lead to any positive social consequences?
From: Zhang, Cai, and Shi (2021)
$7.4 billion $9.4 billion $38.3 billion1
1 Sales volume in 2019.

3. Possible Social Consequence
• Following these large price promotion events, Giving Tuesday has become
more and more popular in recent years.
From: Zhang, Cai, and Shi (2021)

4. Increase Donations
• A field experiment in a café
showed that price promotion,
compared to no promotion, could
lead more consumers to donate
(17.5% vs. 1.9%) and increase
the average donation amount by
12.5 times.
From: Zhang, Cai, and Shi (2021)
Do Price Promotions Increase Donation Behavior?
Evidence:
Encourage Charitable Behavior
• A consumer survey revealed that
consumers’ charitable behaviors
and willingness to engage in
charitable behaviors increase with
their spending in price promotion
events.

5. • Price promotions can boost consumers’ perceived resources by providing both
actual monetary savings and a subjective experience of saving money.
• Greater perceived resources after participating in price promotions increase
consumers’ donation behavior.
From: Zhang, Cai, and Shi (2021)
Why Do Price Promotions Increase Donation Behavior?
Price Promotions
Perceived
Resources
Donation
Behavior

6. From: Zhang, Cai, and Shi (2021)
Key Takeaways
For Firms
• Use price promotions as great
opportunities to collaborate with
charitable organizations.
• By soliciting donations after
consumers complete their
purchases, firms can cultivate a
purer image of corporate social
responsibility.
For Charitable Organizations
• Whom to target: Consumers who
have participated in price
promotions.
• When to target: Immediately after
consumers make purchases.
• How to increase effectiveness:
Pair donation appeals with
promotions for necessities that
offer immediate discounts.