Annual Report 2018 slide image

Annual Report 2018

Administration DETERMINING FACTORS OF SMALL CHANGE DONATION BY RETAIL CONSUMERS AND ITS IMPACTS ON SOCIAL DEVELOPMENT By allowing customers to donate the small change from their purchases to socio-environmental causes, retail stores can be a major ally in disseminating the culture of donation in Brazil. To understand more deeply what prompts consumers to donate their small change from retail purchases, a survey was conducted among customers of 42 stores of the Minuto Pão de Açúcar chain. OBJECTIVE • To evaluate a pioneering proposal in Brazil for integration between retail stores and the third sector to raise funds for social development by voluntary contributions from consumers. The focus is on the customers of retail stores who choose to donate their small change, by rounding up the amount paid. RESEARCH METHOD • The methodological-conceptual structure of the Transformative Consumer Research (TCR) movement was adopted, which encourages the conduction of studies that ben- efit the quality of life affected by consumption. The study was carried out in three phases. 1. 2. 3. Quantitative - An online survey was conducted among 1,449 customers of 42 stores of the Minuto Pão de Açúcar chain. Quantitative data were collected about demo- graphic factors and attitudinal factors that can affect the process of donation. Quantitative - A field experiment was conducted lasting one month at the 42 stores, using data on purchases and donations by customers. Quantitative data were collected on the situational factors that can affect the donation process. Qualitative Three focus groups composed of Minuto Pão de Açúcar customers who had experienced the small change donation project were formed. The first group consisted of regular (engaged) donors, the second of occasional donors and the third of rare and non-donors. Qualitative data were collected from the focus groups that helped to understand how the situational, demographic and attitudinal factors affect the donation process The quantitative analyses were carried out via binary logistic regression, hierarchical cluster analysis and analysis of variance. RESULTS • The study showed that situational factors and attitudinal factors have the greatest influence on the behavior of retail store consumers to donate their small change to support socio-environmental actions. The most relevant situational factors for micro-donation were: highest total amount of the purchase; lowest change amount; and high engagement of the store/cashier. The most relevant attitudinal factors for micro-donation were: previous disposi- tion of the consumer to help others; positive prior perception of the consumer about the work of NGOs; and previous intention of the consumer to donate when opportunities appeared. Three donor profiles were noted among the respondents: (1) engaged (less suscep- tible to the influence of situational factors), (2) occasional (more susceptible to the influence of situational factors); and (3) rare and non-donors (influenced by situational factors in more specific circumstances, such as if the amount of the change represents a tiny portion of the total value of the purchase). They did not differ in demographic terms, but did in terms of attitude and behavior. Engaged and occasional donors were clearly more altruistic than rare and non-donors. However, consumers with all the pro- files expressed concern with improving education. The main challenge for success of the project is to make the customers understand how the micro-donation system functions at retail shops and to obtain their adherence for the first time. For this purpose, it is important to involve the store staff, to provide customers with information before their arrival at the store and to supply details about the project in non-invasive form, with stress on transparency. CONTRIBUTIONS OF THE STUDY The "donation of small change at retail stores" model is groundbreaking in Brazil. It offers a rich possibility for interface between private companies and the third sector, through involvement of consumers as protagonists of the process. The project covers some theoretical gaps in the literature: the influence of the amount of the donation in the propensity to donate; the role of gender in donation behavior; the influence of brand familiarity in the decision process of potential donors; and the influence on customers' behavior of the engagement of store staff with the social re- sponsibility program. APPLICATIONS OF THE RESULTS AND POSSIBLE EXTENSIONS OF THE STUDY • The model tested in the study can serve as a reference for organizational initiatives that share the objective of promoting social development in Brazil, strengthen the institutional image of the participating companies and generate funds for the projects of social organizations. The money received from the micro-donation can promote the work of social organi- zations and benefit the people helped by them, enabling the financial stability neces- sary to continue current initiatives and promote new ones. Decision-makers of retail companies and social organizations can use the results of the project and the discussions raised by it as support for decisions that promote real social impacts, such as improving the living conditions of needy Brazilians. AUTHOR: Tânia Veludo-de-Oliveira. RESEARCHERS: Edgard Barki and Felipe Zambaldi. ORGANIZATION: Sao Paulo School of Business Administration (EAESP). SUPPORT: Center for Excellence in Retailing (FGVcev), Center for Entrepreneurship and New Busi- nesses (FGVcenn), and Applied Research Fund (FPA FGV), all of Fundação Getulio Var- gas, and Sao Paulo State Research Support Foundation (FAPESP). 12 Annual Report 2018 13 RESEARCH
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