Return to results
Conference Proceedings (1998), ANZMAC98, University of Otago

Modeling Reaction to a Pricing Scale: An Application to Requests for Charitable Donations

Understanding the influence of context on choice is an important goal, one which must result in communications giving greater weight to the framework to be created than to putting forward specific advantages. In this research, we study the influence of the price scale proposed to obtain a donation by a mail request on the donor's behavior. Factors which influence the behavior at the individual level, as past behavior, are controlled within an experimental frame and several price scales are tested. The results show that, at the agregate level, the price scale has only a small impact on the mailing efficiency. But, with a model explaining the donation distribution, we demonstrate first the influence of the 'appeals scale' on donor behavior. Second, we show the need for controlling underlying heterogeneity as past behavior has a far more important role than the scale modification.

DESMET, P. (1998). Modeling Reaction to a Pricing Scale: An Application to Requests for Charitable Donations. In: ANZMAC98. University of Otago.