CHARITIES could raise more donations if they solicited consumers at the time around or after promotional periods. While spikes in donations are observed after certain Black Friday-type operations, a cohort of researchers is revealing the extent to which these promotions influence consumer generosity.

Researchers from Nanyang University of Technology in Singapore, Jiao-tong University in Shanghai, and the University of Hong Kong started their project from a simple observation: Giving Tuesday, a global campaign calling for commitment and solidarity that takes place just after Black Friday and Cyber Monday, is a worldwide success every year. In 2020, Americans demonstrated great generosity with donations estimated at $2.47 billion on this occasion.

In their study, published in the Journal of Marketing, the scientists analyzed this phenomenon and drew conclusions that could help charities see their donations increase significantly. In particular, their work suggests that the savings from these promotions increase the resources perceived by consumers, generating a greater desire and opportunity to donate.

But that's not all. The phenomenon could be even stronger when consumers focus primarily on the amount of money saved after a purchase, and even more so when that purchase fits into their budget, and when the savings are realized immediately and not in the future. Researchers say this is part of the reason for the success of Giving Tuesday, which offers consumers the opportunity to make their donation instantly.

This work also provides charities insights about when to launch their campaigns, which consumers to target, and the need to link their appeals for donations to promotions that focus on necessities and not on products associated with the notion of indulgence.

"Our research also suggests that firms can use price promotions as great opportunities to collaborate with charitable organizations," explains Fengyan Cai, one of the authors of the study. But more than donating the profits from Black Friday to these organizations -- which many brands already do -- it could be a matter of soliciting donations once the purchase has been made, so as not to raise doubts in the minds of consumers who might wonder about the real motivations of the brands.

"This strategy was exemplified recently by Ralph Lauren, which partnered with the World Health Organization to fight against the COVID-19 pandemic by soliciting donations from customers immediately after they submitted their orders on the store's official online shop. This collaborative strategy between firms and nonprofit organizations can create a win-win situation that benefits stakeholders and contributes to a better world," conclude the researchers.