Online ‘donation cart’ effect: The impact of ‘donation cart’ on online charitable giving

Abstract: In online charitable giving, low donation conversion rates present a significant challenge. While much of the prior research in this area has concentrated on factors tied to existing fundraising practices, our research proposes and examines a novel factor that could significantly impact donation conversion rates: the addition of a ‘donation cart’. Our findings suggest that adding a ‘donation cart’ can boost donations in online fundraising, which we termed the online ‘donation cart’ effect. This effect occurs because adding a ‘donation cart’ makes it easier for people to make initial decisions (i.e., deciding to add to the donation cart) and subsequently ensures consistency in their donation decisions. Furthermore, we propose that the preference for consistency moderates the ‘online donation cart’ effect, such that this effect is attenuated among those with a lower (vs. higher) preference for consistency.
We conducted six studies to test our propositions. Study 1 was a mini-program experiment designed to simulate a real online fundraising environment. We developed two simulated donation platforms—one with the addition of a ‘donation cart’ and one without—to compare their fundraising performances. Subsequently, Studies 2A, 2B, and 3 were three controlled experiments that examined the joint underlying mechanisms of the online ‘donation cart’ effect: perceived decision difficulty and consistency motive. Specifically, Studies 2A and 2B compared individuals’ perceived decision difficulty and their decision intention when deciding whether to ‘add to the donation cart’ vs. ‘donate immediately’. Study 3 evaluated the impact of adding (vs. not adding) a ‘donation cart’ on individuals’ consistency motive and donation intention. Lastly, Studies 4A and 4B both measured and manipulated individuals’ preference for consistency, examining the interaction effect between adding (vs. not adding) a ‘donation cart’ and levels (lower vs. higher) of preference for consistency on individuals’ donation intentions.
As predicted, Study 1 demonstrated that adding (vs. not adding) a ‘donation cart’ significantly boosted donations, thus supporting the online ‘donation cart’ effect. Studies 2A and 2B further revealed that deciding whether to ‘add to the donation cart’ (vs. ‘donate immediately’) was perceived as easier, thereby increasing individuals’ decision intention. Study 3 then established that adding (vs. not adding) a ‘donation cart’ strengthened individuals’ motivation for consistency related to their initial decisions, which ultimately increased their donation intention. Lastly, Studies 4A and 4B found that the online ‘donation cart’ effect was attenuated in individuals with a lower (vs. higher) preference for consistency, confirming the moderating role of the preference for consistency.
This research contributes to the literature on donation behavior, deepening our grasp of online charitable behavior by uncovering previously unexplored determinants. Moreover, it provides practitioners in the charitable sector with important practical insights, setting the stage for more effective strategies in digital philanthropy.