'Three is better than two': Increasing donations with the attraction effect.

Area of Science:

• Behavioral Economics
• Social Psychology
• Charitable Giving Research

Background:

• Understanding factors influencing prosocial behavior is crucial for effective charitable fundraising.
• Decision-making in the context of charitable donations can be influenced by the presentation of options.

Purpose of the Study:

• To investigate the attraction effect in the context of helping behavior and charitable donations.
• To determine the boundary conditions under which the attraction effect influences donation choices.

Main Methods:

• Conducted five experiments with a total of 2,503 participants.
• Participants chose between two or three donation appeals, with a decoy option included in the three-alternative set.
• Varied conditions such as attribute clarity, donation structure, and contribution flexibility.

Main Results:

• The presence of a decoy significantly increased the selection of the target (most beneficial) donation appeal.
• Participants perceived the target alternative as more beneficial and less costly when a decoy was present.
• These findings remained robust across various conditions, including unclear attribute ratings and flexible donation amounts.

Conclusions:

• The attraction effect, a well-documented cognitive bias, can be effectively leveraged to increase charitable giving.
• Charities can implement the strategic use of decoy options at no cost to enhance donation appeal effectiveness.
• This research provides practical strategies for non-profits to boost contributions and perceived impact.