A new study has found that consumers are more willing to accept slower delivery times from retailers when the company agrees to donate to a charitable cause, rather than offering a discount on the purchase. This research provides valuable insights for retailers struggling to balance speedy delivery with cost-effective operations. The study suggests that a donation incentive can be a more effective strategy to encourage consumers to opt for delayed shipping options. Retail companies can leverage this finding to ease delivery-related stresses and potentially reduce their environmental impact.
Consumer Preference for Donation Over Discount
The study, conducted by researchers from North Carolina State University and Saint Louis University, explored various incentives that could encourage consumers to opt for slower delivery options when shopping online. The key finding was that people were more likely to choose the slower delivery if the retailer made a donation to a charity, rather than offering a financial reward like a discount on the purchase.
According to Stefanie Robinson, co-author of the study, “Consumers view donations to be more of a fair trade-off for delayed delivery than other financial incentives.” The researchers conducted a series of six studies involving over 2,000 participants, and this preference for donation-based incentives held true across different demographic groups.
Contextual Factors that Influence Consumer Preferences
The researchers also identified two other factors that can impact consumers’ willingness to accept delayed deliveries. First, they found that people’s preference for the discount option over the donation incentive increased significantly if the retailer explained the rationale behind the slower delivery, such as reducing environmental impact.
“For example, if a retailer said the delayed delivery option reduced the environmental effects, people were just as willing to accept the delay with the discount incentive as they were to accept the delay with the donation incentive,” Robinson explains.
Second, the donation incentive did not outperform the discount incentive when the items being delivered were utilitarian in nature, such as batteries. “In other words, if it’s something people actually need, it doesn’t matter which incentive the retailer offers,” Robinson says.
Practical Implications for Retailers
The study’s findings offer valuable guidance for retailers who are navigating the challenges of providing speedy delivery while maintaining cost-effective operations. “There are times when retailers can’t offer speedy delivery, and this paper shows that offering a donation incentive can motivate consumers to opt for slower delivery options,” says Robinson.
This research suggests that retailers could potentially leverage donation-based incentives to ease the stress associated with meeting consumer demands for fast delivery. By incentivizing slower delivery options, companies may be able to reduce their environmental impact and optimize their logistics, all while maintaining customer satisfaction.
As the retail landscape continues to evolve, studies like this one provide important insights that can help companies adapt and thrive in an increasingly competitive and fast-paced industry.
