When less is more: The numerical format effect of tourism corporate donations

Abstract

Corporate philanthropy has been demonstrated as the most effective corporate social responsibility (CSR) strategy for tourism companies to enhance their reputation and competitiveness, especially beyond a crisis (e.g., COVID-19). However, little is known about the factors that make tourism corporate donations more effective in generating positive consumer reactions. Across three experiments, this research shows that consumers tend to respond more favorably to a donation amount presented in a rounded format (e.g., $500,000) than a precise one (e.g., $501,327) because a rounded numerical format triggers individuals' higher levels of other-praising affective reactions (Studies 1 and 2). However, this effect does not hold for small-sized firms (Study 3). The research offers novel theoretical implications for tourism corporate philanthropy and insights for managers.