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Nudging art lovers to donate.

Fillis, IR, Lee, B and Fraser, I (2017) Nudging art lovers to donate. Nonprofit and Voluntary Sector Quarterly, 46 (4). pp. 837-858. ISSN 0899-7640

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Many nonprofit organizations face revenue uncertainty due to funding cuts. It is crucial for them to supplement existing revenue streams by private donations, and apply thoughtful market segmentation in their pursuit of donors. We introduce the behavioral concept of ‘nudge’ based on the possibility of loss aversion affecting willingness-to-donate, and investigate its implications for fundraising strategies. Potential donors are nudged to donate by the hypothetical scenario of ‘losing’ an existing exhibition, and also by that of ‘gaining’ an additional exhibition. We observe significant loss aversion effects as frequent gallery-goers donate more in order to avoid losing an exhibition. While both prospective gain and loss scenarios are effective in nudging non-frequent gallery-goers, the prospect of enjoying ‘one more’ event is observed to be stronger. We argue that there may be scope to increase support for nonprofit organizations, particularly in the cultural sector, by exploiting the psychological characteristics of prospective donors.

Item Type: Article
Subjects: H Social Sciences > HF Commerce > HF5001 Business
H Social Sciences > HG Finance
H Social Sciences > HF Commerce > HF5001 Business > HF5410 Marketing. Distribution of Products
Divisions: Liverpool Business School
Publisher: SAGE Publications
Related URLs:
Date Deposited: 15 Mar 2017 12:42
Last Modified: 04 Sep 2021 11:48
DOI or ID number: 10.1177/0899764017703708
URI: https://researchonline.ljmu.ac.uk/id/eprint/5964
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