Licensing Effect in Sustainable Charitable Behaviors

Abstract

The theory of licensing effect suggests that consumers tend to perform self-interested or self-indulgent actions after undertaking altruistic behaviors. How do past altruistic experiences affect the willingness of consumers to perform charitable behaviors in the future? Results from an exploratory approach comprising three laboratory studies and one field experiment demonstrate the existence of licensing effect in charitable conditions. We find that consumers are more unwilling to undertake charitable activities when they recall past similar experiences. The donation resources (time/money) do not influence the licensing effect. Two other variables moderate the size of the licensing effect: the way in which the initial charitable behavior is recalled (abstract vs. concrete) and the attribution for initial charitable behavior (collective vs. individual). We find that consumers are more reluctant to carry out charitable behavior when: (1) they recall the concrete details rather than the abstract goal of past activity; (2) consumers are praised for individual efforts rather than collective contribution in past activity. These findings offer new theoretical insights into the licensing effect in consumers’ charitable behaviors and set out practical implications for the sustainability of charitable programs.