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CONSUMER BEHAVIOUR
REPORT
Donor Behaviour
Kathryn Knight
Student Number: n8858713
Word Count: 1745
N8858713
Kathryn Knight
Consumer Behaviour Report – Donor Behaviour
1. Context and Problem
Charity organisations are one of the greatest concepts that mankind have created, and
they are highly respected throughout all societies. However, being respected doesn’t
make it easy for charities to collect donations. There are now so many charity
organisations requiring donations that each must fight to be heard or risk dying out.
People in modern society have also become desensitised; being bombarded with
thousands upon thousands of advertisements daily, each inevitably wanting money, has
made many people cynical about giving money to anyone, and they are no longer moved
by traditional, boring advertising. The Royal Brisbane and Women’s Hospital (RBWH)
needs to break free from the clutter and show society that their money is not being
wasted.
2. Literature Review
There are many different theories and speculations about why people choose to donate
or choose not to donate. Studies have shown that people are more likely to donate to
people who they believe are similar to them in some way. This means that charities that
support groups of people who are largely dissimilar to the individual are very likely to be
ignored or go unnoticed (Sargeant, A., Ford, J.B., and West, D.C, 2006). It also means
that people are likely to feel uncomfortable at charity events where it appears that they
do not belong there. If they feel they will suffering from a class divide or a great contrast
with any other demographic if they attend an event, there is a very slim chance that
they will attend; and their discomfort will more than likely decrease the amount of
money they wish to donate.
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This pattern has also lead to donors becoming more discerning when it comes to
choosing which charities they wish to give a donation (Schmittlein, D.C. and Peterson.
RA, 1996). Donors are now actively seeking charities with which they can form a
relationship. People are more and more interested in what happens with their money
and there are many people who like being actively involved in the process. This means
that if charities don’t actively try to maintain their donor relationships then they will
inevitably end up losing a lot of the funds that they desperately need. Donors that have
strong, well-maintained relationships with charities are also significantly more likely to
continue donating to that charity (Sargeant, A. 2001; Bennett, R., & Barkensjo, A. 2005).
Studies have also shown that donors like to participate in donation behaviour that will
bring them social recognition (Ferguson, E., France, C. R., Abraham, C., Ditto, B., &
Sheeran, P. 2007; Martin, R., & Randal, J. (2009a). Activities such as purchasing pens,
badges, t-shirts and wristbands are all very common charity items because they award
donors with the recognition they feel they deserve. Behaviour that is performed to
become socially desirable can often be seen at charity events where a large group of
people attend (Martin, R., & Randal, J. 2008b). Donors are more likely to donate larger
amounts when in the company of their peers than if they were asked to donate
privately, or in a room of people to whom they felt alienated.
Economic factors are a major influence on donor behaviour, although it is not always as
obvious as it would appear to be. The obvious factor, is that when the economy goes
through hardship, people often decrease or sometimes even stop their donations
altogether. The not so obvious factor is that the people who donate the most are not
the people with the most money. Studies have shown that people who know what it is
like to go through financial hardships are more likely to donate money than those who
have never been worse off (Todd, S. J., & Lawson, R. W. 1999). This trend has little to do
with disinterest and usually takes its roots from lack of understanding.
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3. Theory/Model/Framework
The theories that have been chosen to support this report are the Theory of Planned
Behaviour and Maslow’s Hierarchy of Needs. Theory of planned behaviour states that
the attitude of a person towards a certain behaviour is strongly influenced by what they
believe the outcome will be from that situation (Ajzen, I. 1991). An example of this
occurring in donor behaviour is when a person believes that donating to charity is a
good thing because it will help other people in need. The Theory of Planned Behaviour
also states that individuals react strongly to social influences (Ajzen, I. 1991). A person’s
beliefs on what is normal or socially expected will help them make consumer decisions.
This means that if the peers of an individual believe that it is a good thing to donate to
charity, then it is quite likely that the individual will believe so too.
Similarly, Maslow’s Hierarchy of needs addresses each of the different needs that
motivate the individual (Poston, B. 2009). Donating to charity helps to satisfy the Self
Esteem need. Driving factors behind a majority of donation behaviour stems from the
need of an individual to be socially accepted and respected, and also from the need to
feel good about decisions they have made. Helping others in need is one of the most
direct ways for an individual to increase their self-esteem.
4. Recommendations
To help RBWH Foundation receive more donations, they must apply some new
strategies to their work to break free from the clutter. Previously, the organisation has
held events such as fancy dinners and balls to raise money for their charity. For most
people, these are seen as events that only people of a certain class would attend. They
may wish to attend these events, but they fear that they won’t ‘fit in’ with the rest of
the guests, and therefore don’t even consider attending. To prevent this, RBWH
Foundation can host events that appeal to a wider population. Examples of these events
would be barbeques held at places such as Roma Street Parklands or The Botanic
Gardens, or Battle of the Bands concerts held at places such as Brisbane River Stage.
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These events appeal to many different demographics, and they invite people to get
involved in the process.
Barbeques and Sausage Sizzles have been a part of Australian culture for generations.
Charging just a few dollars for sausage sandwiches and cans of soft-drink will add up to a
lot of money raised and many people will see it as very affordable and will possibly end
up spending more because of that. It is almost impossible for anyone to feel
uncomfortable at a barbeque, as the atmosphere is always friendly. It is also a perfect
setting to initiate small games and competitions to increase enjoyment. Activities such
as sack races, eating competitions and treasure hunts can be enjoyed by guests of all
ages, and the Foundation would not have to spend a fortune on prizes. In light-hearted
situations such as this, chocolates make for more than adequate prizes, and there is
little chance of a complaint. Any person attending the event will definitely enjoy
themselves, and is likely to feel very comfortable and relaxed. This will lead to them
being more motivated to donate.
Battle of the Bands concerts are also very enjoyable for anyone attending. Events such
as these encourage more people to get involved with the process. These competitions
always attract a lot of attention and applications from all different kinds of people. It
also has many different opportunities to raise money. The bands who wish to enter can
be charged a small entry fee of a few dollars (it would deter many applicants if the
entering price was too high), and the audience can be charged a small entry fee. Things
such as food, beverages and Foundation merchandise could be sold on the premises as
well. Another innovative way to raise money at a Battle of the Bands concert is to
involve the donating in the process to pick the winning band. Telling the audience that
the way to vote for their favourite band is by donating money to the Foundation, and
that at the end of the concert, whichever band raised the most money for the
Foundation wins the competition. Prize options for the winning band could be time in a
recording studio or even publicity from any media platforms that have elected to cover
the event.
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For these events to be effective, they need to be promoted in a way that catches the
attention of a lot of people. Instead of just advertising on television or in traditional
newspapers and magazines, it is better to go for a promotional strategy more suitable
for the event. Printing out posters and flyers, and putting them up on community noticeboards at universities, sports clubs and bars will be a great way to reach a vast array of
people. Radio advertising would also be an effective tool as it a very popular media
channel, and it is much cheaper than television advertising.
It is also important for the RBWH Foundation to increase and improve its online
presence. At the moment, their website is very nicely presented and it encompasses the
‘character’ of the charity. Their Facebook page, however, needs some serious attention.
The page is updated with statuses often enough, but the page lacks the same character
embodied in the Foundation website. A good strategy to apply would be to make the
page more interactive with the audience, and allow them to participate in the decision
making process for deciding on events to hold. Creating a forum where the people
interested in donating are able to help create events they want to go to will make them
more interested in donating because they were actively involved in the process. Public
involvement can vary in degree for each different event, ranging from having almost
complete control over what type of event they want and when, to making only small
decisions like selecting a colour scheme or party theme.
Another possible way to increase the likeability of the Facebook page is to find a fun way
to provide the audience with more information about what the RBWH Foundation does.
This can be achieved by presenting the audience with daily fun facts about topics related
to the work at RBWH. The topics could change each week, from the history of the
hospital, to the staff working there, and possibly even facts about donation behaviour.
This process would allow the audience to feel like they had a better relationship with the
Foundation and therefore be more inclined to donate. It would also make them feel as if
they were ‘getting something back’ from their donating efforts.
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5. References
Ajzen, I. (1991). The Theory of Planned Behaviour, Organizational Behaviour and Human
Decision Process, 50(2), p217-227.
Sargeant, A., Ford, J.B., and West, D.C. (2006) Perceptual determinants of non-profit giving
behaviour, Journal of Business Research, 59(2), p155-165.
Schmittlein, D.C. and Peterson. RA (1996). "Customer Base Analysis: An Industrial Purchase
Process Application", Marketing Science, (Winter) p41- 67.
RBWH Foundation (2010). Home Website. The Royal Brisbane and Women’s Hospital
Foundation. http://www.rbwhfoundation.com.au/
Poston, B. (2009). Maslow’s Hierarchy of Needs. Surgical Technologist, p348.
Ferguson, E., France, C. R., Abraham, C., Ditto, B., & Sheeran, P. (2007). Improving blood
donor recruitment and retention: integrating theoretical advances from social and
behavioural science research agendas. Transfusion, 47(11), p1999-2010.
Todd, S. J., & Lawson, R. W. (1999). Towards a better understanding of the financial donor:
an examination of donor behaviour in terms of value structure and demographics.
International Journal of non-profit and Voluntary Sector Marketing, 4(3), p237.
Martin, R., & Randal, J. (2008b). How is donation behaviour affected by the donations of
others? Journal of Economic behaviour & Organization, 67(1), 228-238.
Martin, R., & Randal, J. (2009a). How Sunday, price, and social norms influence donation
behaviour. Journal of Socio-Economics, 38(5), 722-727.
Sargeant, A. (2001). Relationship fundraising: How to keep donors loyal. Non-profit
Management and Leadership, 12(2), 177-192.
Bennett, R., & Barkensjo, A. (2005). Causes and consequences of donor perceptions of the
quality of the relationship marketing activities of charitable organisations. Journal of
Targeting, Measurement and Analysis for Marketing, 13(2), 122-139.
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