Exploring the Connection between Purchase and Donation

Abstract

While much has been discussed in marketing about the nature of purchase behaviors in commercial contexts, very little touches upon the intersection of purchase and donation behavior. Our objective in this research is to propose a model of how donation and purchase behavior intersect and to determine the relationship between them in a nonprofit context. Based on theories in social psychology and behavioral economics, we use a Poisson/Gamma mixture model by merging purchasing and donation data from a performing arts center. We found that various pieces of information presented in the transaction data can function as indicators and proxies of behavioral attitudes.