Consumer altruism and risk taking: why do altruistic consumers take more risks?

Abstract

This research studies an interesting and counter-intuitive relationship between consumer altruism and risk taking. While these two constructs have been studied extensively by extant research, there is scant research which has studied the relationship between them – perhaps due to the expectation that individuals who are chronically more altruistic are very different from those who are more risk taking. This research tests this expectation by formally studying the relationship between altruism and risk taking using a mixture of survey-based and experimental methodology. First four studies test the relationship between altruism and risk-taking using survey-based methodology involving some of the most prominent scales for measuring trait altruism and risk taking. The final study investigates the influence of trait altruism on situational social risk taking. Trait altruism and risk taking are found to be significantly positively correlated with each other, with the relationship being the strongest for social risk taking. Further, the relationship is not significant for ethical risk taking. Additionally, it was found that trait optimism could be the underlying cause for the relationship. Further, it was also found that trait altruism was significantly positively correlated with situational social risk taking. Contributions emerge for the literatures on consumer altruism, risk taking, and optimism by filling an important theoretical gap related to the inter-relationships between these three constructs. Additionally, this research has important implications for practice by informing nonprofit organizations about an erstwhile unknown facet of altruistic people – their tendency to take risks. This opens new avenues for nonprofit practitioners to explore when looking to expand the scope and size of their initiatives, and to innovate on their current offerings in a variety of ways. Additionally, it provides insights that can help for-profit marketers to increase participation in their activities.