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Irritation Due to Direct Mailings from Charities

Author

Listed:
  • van Diepen, M.
  • Donkers, A.C.D.
  • Franses, Ph.H.B.F.

Abstract

Direct mailing is the main tool that charities employ for fundraising. With increasing amounts of soliciting mailings and with the best donators receiving more mailings as a result of target selection, irritation might increase. As a result, such irritation could cause individuals to donate less, and hence reduce revenues for charities. We develop a conceptual model, which relates donating behavior to irritation and to mailing frequencies. We consider mailing frequencies relative to a reference point, which we call the maximum acceptance level. Furthermore, we allow for asymmetric effects of positive and negative differences with this maximum acceptance level, and hence we consider the effects of receiving excessive and acceptable amounts of mailings. To test our model empirically, we conduct a survey on charitable direct mailings and donating behavior among 213 respondents. We find that too many mailings do indeed lead to irritation, and that such irritation reduces annual donations.

Suggested Citation

  • van Diepen, M. & Donkers, A.C.D. & Franses, Ph.H.B.F., 2006. "Irritation Due to Direct Mailings from Charities," ERIM Report Series Research in Management ERS-2006-029-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    • Handle: RePEc:ems:eureri:7832
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    Citations

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    Cited by:

    1. van Bruggen, G.H. & Spann, M. & Lilien, G.L. & Skiera, B., 2006. "Institutional Forecasting: The Performance of Thin Virtual Stock Markets," ERIM Report Series Research in Management ERS-2006-028-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    2. Reinstein, David, 2006. "Does One Contribution Come at the Expense of Another? Empirical Evidence on Substitution Between Charitable Donations," Economics Discussion Papers 2938, University of Essex, Department of Economics.
    3. repec:pri:cepsud:173rosen is not listed on IDEAS
    4. Meer, Jonathan & Rosen, Harvey S., 2011. "The ABCs of charitable solicitation," Journal of Public Economics, Elsevier, vol. 95(5-6), pages 363-371, June.
    5. Jonathan Meer & Harvey S. Rosen, 2008. "The ABCs of Charitable Solicitation," Working Papers 1057, Princeton University, Department of Economics, Center for Economic Policy Studies..

    More about this item

    Keywords

    DM; Direct Mail; Irritation; Junk Mail;
    All these keywords.

    JEL classification:

    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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