Would You Like to Round Up and Donate the Difference? Roundup
Requests Reduce the Perceived Pain of Donating
Katie Kelting
Saint Louis University
Stefanie Robinson
North Carolina State University
Richard J. Lutz
University of Florida
Accepted by Anirban Mukhopadhyay, Editor; Associate Editor, Simona Botti
Recently, some companies have begun to ask their customers to “round up” transactions to the next highest
dollar and donate the difference to charity. However, little is known about how consumers respond to such
an appeal. Across a series of lab experiments and one large field study, we find that consumers respond more
favorably to a roundup than to a flat donation request, even when the requested amount is identical. We find
evidence that the effect arises because a roundup request reduces consumers’ perceived pain of donating.
Three alternative explanations are examined (i.e., objective financial cost, inattention to donation cost, and per-
ceived novelty of the request) but not supported. This research has important implications for both companies
and nonprofits seeking to increase charitable donations from consumers.
Keywords Rounding up; Prosocial behavior; Donation
Recently a number of retailers have implemented a
creative way for customers to donate to a good
cause by “rounding up.” Specifically, stores (e.g.,
Whole Foods, J.C. Penney, Petco) and restaurants (e.g.,
California Pizza Kitchen, Tony Roma’s, The Original
Pancake House) offer customers an opportunity, dur-
ing checkout, to round up their total bill to the next
whole dollar and donate the difference to a charity.
The purpose of this research is to investigate how
consumers respond to a roundup donation request
relative to one for a flat financial amount.
If consumers behave rationally, the decision to
donate should be independent of the nature of the
request that is made, especially when the financial
amount being requested is equivalent. However, in
the prosocial literature, an extensive body of work
has shown that how one requests help matters (Ein-
Gar & Levontin, 2013; White, MacDonnell, & Dahl,
2011). For example, consumers respond differently
to appeals that highlight the benefits to self versus
others (White & Peloza, 2009) and focus on in- ver-
sus out-group victims (Duclos & Barasch, 2014). We
seek to extend this literature by showing how
roundup and flat donation requests differentially
affect consumers’ prosocial behavior.
Although donating money is a socially desirable
behavior (Satow, 1975), it is nevertheless a financial
loss to consumers. Since losses are painful (Thaler,
1985), consumers try to avoid them (Kahneman &
Tversky, 1979). However, objectively equivalent
losses are not always experienced as equivalently
painful by consumers (Raghubir & Srivastava, 2009;
Soster, Gershoff, & Bearden, 2014). For example,
consumers feel less pain spending money under
conditions when they pay with credit (vs. cash)
(Thomas, Desai, & Seenivasan, 2011) or experience
strong (vs. weak) social support (Xu, Zhou, & Ye,
2015). Since spending and donating are both behav-
iors that involve consumers parting with money
(Oppenheimer & Olivola, 2010), we investigate
whether a roundup (vs. flat) request can decrease
consumers’ perceived pain of donating.
Received 12 May 2017; accepted 20 May 2018
Available online 19 June 2018
The authors thank the Editor, the AE, the reviewers, Keith
Coulter, Robin Coulter, Danit Ein-Gar, DaHee Han, Jim Madison,
John Peloza, Yang Yang, and research seminar participants at
North Carolina State University, Saint Louis University, and
Washington University for their insightful comments and
support.
Correspondence concerning this article should be addressed to
Katie Kelting, Richard A. Chaifetz School of Business, Saint Louis
University, 3647 Lindell Boulevard, Saint Louis, Missouri 63108,
USA. Electronic mail may be sent to katie.kelting@slu.edu.
© 2018 Society for Consumer Psychology
All rights reserved. 1057-7408/2019/1532-7663/29(1)/70–78
DOI: 10.1002/jcpy.1064