Instant Karma: How the Karmic-Investment Mindset Affects Customer Engagement With Corporate Charitable Giving Requests

Abstract

Corporate charitable giving (CCG) is increasingly pervasive in the global hospitality industry. Among various subtypes of CCGs, many hospitality companies request donations from customers during the service delivery or payment process to encourage customer engagement and co-created social responsibility. Karma—the implicit belief that the universe rewards good deeds and punishes wrongdoings—resonates with consumers’ prosocial behaviors, yet little is known about how karma beliefs, along with various donation elements, affect donation likelihood. Study 1 demonstrates that karma believers are more likely to donate gifts-in-kind than money, as it signals altruism that engenders karmic rewards. Study 2 shows that consumers with weak (vs. strong) karma beliefs are more likely to donate in a public (vs. private) setting due to greater reputational benefits. This research enriches the literature on hospitality CCG marketing and provides insights to managers regarding how to effectively execute donation programs.