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The Brand Personality of Nonprofit Organizations and the Influence of Monetary Incentives

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Abstract

The brand personality of nonprofit service organizations (NPO) is a focal cue for individuals engaging in pro-social behavior. However, the positive effect of brand personality on donors’ intention to engage pro-socially may be affected in cases in which NPOs provide monetary incentives to those donors. Relying on social exchange theory, the authors examine how monetary incentives and brand personality commonly affect the intention to donate and whether this effect varies based on the perceived trustworthiness of the NPO. The results of two experimental studies show that branding and incentivizing decisions should not be developed independently because monetary incentives do indeed undermine the positive effects of brand personality on the intention to donate. However, the effectiveness of incentives varies with the perceived level of trust in the NPO: highly trusted NPO services are harmed by monetary incentives, whereas less-trusted NPOs may even benefit.

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Notes

  1. To use only realistic responses, we considered only potential blood donors and excluded 49 participants who were not allowed to donate blood due to medical conditions or age restrictions (<18 years; >71 years). Additionally, we excluded five participants because of their unrealistically fast processing time (<8 min; average: 17 min).

  2. Similarly to Study 1, we excluded 196 participants (besides the 418 valid responses) who were not eligible to donate blood and 40 respondents who gave answers with low reliability.

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Acknowledgments

We are grateful for the support of this research from the blood donation services of the German Red Cross North and East.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Edlira Shehu.

Appendices

Appendix: Description of Measures

Construct/items

Study 1

Study 2

Mean

SD

Mean

SD

Intentiona (Lemmens et al. 2009)

 Do you intent to give blood in the next 6 month

4.18

2.22

3. 37

2.16

Integrityb (Venable et al. 2005)

3.79

0.88

3.39

1.21

 The organization is honest

3.64

1.09

3.28

1.32

 The organization has positive influence

3.77

1.02

3.41

1.29

 The organization is committed to the public good

3.86

0.95

3.44

1.30

 The organization is reputable

3.94

0.91

3.56

1.20

 The organization is reliable

3.73

1.03

3.26

1.37

Nurturanceb (Venable et al. 2005)

3.46

0.93

3.42

1.26

 The organization is compassionate

3.27

1.12

3.00

1.36

 The organization is caring

3.57

0.98

3.23

1.30

 The organization is loving

3.55

0.94

3.13

1.29

Ruggednessb (Venable et al. 2005)

2.95

0.78

2.95

0.89

 The organization is tough

3.63

0.99

3.76

1.10

 The organization is masculine

2.41

1.11

2.60

1.19

 The organization is outdoor

2.59

1.12

2.47

1.19

 The organization is western

3.17

1.12

3.12

1.20

Sophisticationb (Venable et al. 2005)

2.55

0.92

2.47

1.03

 The organization is good-looking

3.21

1.05

2.96

1.20

 The organization is upper-class

2.11

1.08

2.17

1.15

 The organization is glamorous

2.33

1.18

2.27

1.19

Past behaviorc (Lemmens et al. 2009)

 Have you donated blood within the last 10 years?

0.50

0.50

0.49

0.50

Demographics

 Please state how old you are

39.63

12.65

42.93

14.05

 Please select your gender (1 = male)

0.43

0.50

0.59

0.49

 Are you employed

0.81

0.39

0.73

0.44

  1. Items were measured with a 7-point Likert scale, b 5-point Likert scale, c dichotomous variable

Appendix: Correlations

Study 1

Alpha

Expl. Var.

1.

2.

3.

4.

5.

6.

7.

1. Integrity

0.95

0.84

1.00

2. Nurturance

0.92

0.87

0.73

1.00

3. Ruggedness

0.73

0.56

0.31

0.48

1.00

4. Sophistication

0.78

0.71

0.24

0.48

0.70

1.00

5. Past Behavior

0.07

−0.02

−0.00

−0.06

1.00

6. Age

−0.07

−0.16

0.21

0.19

0.04

1.00

7. Gender

0.11

0.08

0.05

0.12

0.25

0.22

1.00

8. Employment

−0.01

0.08

−0.10

−0.02

0.07

−0.04

−0.00

  1. Significant correlations are marked in italics (p < 0.05, two-tailed significance levels)

Study 2

Alpha

Expl. Var.

1.

2.

3.

4.

5.

6.

7.

1. Integrity

0.96

0.86

1.00

2. Nurturance

0.94

0.89

0.87

1.00

3. Ruggedness

0.75

0.57

0.43

0.47

1.00

4. Sophistication

0.80

0.72

0.50

0.58

0.68

1.00

5. Past Behavior

−0.02

−0.03

−0.02

−0.02

1.00

6. Age

−0.05

0.05

0.05

0.03

0.19

1.00

7. Gender

0.01

−0.04

−0.05

0.02

0.02

0.12

1.00

8. Employment

0.07

−0.00

−0.05

−0.05

0.11

−0.04

0.09

  1. Significant correlations are marked in italics (p < 0.05, two-tailed significance levels)

Appendix: Experimental Stimuli used in Study 1

Monetary Incentive Treatment

Imagine you are on your way to work. A person approaches you and reveals s/he works for the nonprofit organization X. The person informs you about the relevance of blood donations and that donating blood may help to save lives because blood cannot be produced artificially. Then, the person encourages you to donate blood at X’s donation center located close to your home. The person also mentions that X offers 20€ in cash for each time you donate blood.

No Incentive Treatment

Imagine you are on your way to work. A person approaches you and reveals s/he works for the nonprofit organization X. The person informs you about the relevance of blood donations and that donating blood may help to save lives because blood cannot be produced artificially. Then, the person encourages you to donate blood at X’s donation center located close to your home.

Appendix: Experimental Stimuli used in Study 2

High Trust Treatment

Our blood is a merchandising product—Organization X earns millions by selling donated blood to health industry firms.

Berlin Consumer protection organizations are seriously concerned. A recent study on blood donation reveals that only 26 percent of whole blood donations are really needed for patient care. The overwhelming amount of donated blood is sold to the health industry at a substantial profit. Blood donors come away empty-handed, because organization X does not pay for blood donations.

It is unclear whether these revenues are only used to cover the costs. Organization X takes advantage of its long-standing monopoly position within the blood donation market and does not publishing its annual accounts.

Low Trust Treatment

Our blood saves lives—The nonprofit organization X helps to save lives!

Berlin The activities of organization X made it possible to help numerous sick and injured patients in 2011. The social and engagement of organization X is exemplary. According to a recent report, organization X provided the major amount of needed blood also in 2011.

In this context, organization X is clearly focused on the benefit to the public. Organization X operates with exemplary transparency regarding its objectives, activities, as well as the use of resources.

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Shehu, E., Becker, J.U., Langmaack, AC. et al. The Brand Personality of Nonprofit Organizations and the Influence of Monetary Incentives. J Bus Ethics 138, 589–600 (2016). https://doi.org/10.1007/s10551-015-2595-3

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