Every penny counts: The effect of holistic-analytic thinking style on donation decisions in the times of Covid-19

Abstract

This research explores how individual differences in holistic-analytic thinking style affect people's donation intentions and decisions. Specifically, we find that individuals with a more holistic thinking style are more likely to make donations compared to individuals with a less holistic thinking style, and the effect is mediated by the belief that every penny counts. In the first two studies, we examine the impact of cognitive style on donation for a Covid-19-related cause. This context is important because ensuring that individual donors believe their contributions matter is crucial when raising donations for a cause that impacts a large number of beneficiaries, such as fighting Covid-19. We establish the underlying mechanism of the impact of cognitive style on donation intention and donation amount. A third study shows that our findings can be extended beyond the context of Covid-19 and generalized to other nonprofit projects. In conclusion, taking into account an individual-difference variable, such as holistic-analytic thinking style, is important to explain donation decisions and might be worth considering when designing and implementing social interventions, especially during pandemic situations like the one produced by Covid-19.