The Influence of Information Costs on Donor Decision Making McDougle, Lindsey M.

By: McDougle, Lindsey M
Material type: ArticleArticlePublisher: 2014Description: 465 - 485Subject(s): Principal-Agent | Accountability | Nonprofit | Nonprofit Management In: Nonprofit Management & LeadershipSummary: This article explores whether an individual's information costs influence the information-gathering strategies that he or she turns to prior to donating to a nonprofit. The data for the study come from a telephone survey of residents in a large county in southern California (n = 1,002). The sample was selected using random-digit-dialing technology and a computer-assisted telephone interviewing system. A series of binomial logit models revealed that information costs significantly influenced the information-gathering strategies individuals turned to in order to learn about nonprofit performance prior to making a donation. Results also revealed that greater confidence in nonprofits did not lead individuals to forgo efforts to obtain information on nonprofit performance altogether. The findings from this study suggest that it is important for nonprofit administrators to recognize, and then take into account, that not all individuals will rely on the same information sources when seeking to learn about nonprofit performance.
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This article explores whether an individual's information costs influence the information-gathering strategies that he or she turns to prior to donating to a nonprofit. The data for the study come from a telephone survey of residents in a large county in southern California (n = 1,002). The sample was selected using random-digit-dialing technology and a computer-assisted telephone interviewing system. A series of binomial logit models revealed that information costs significantly influenced the information-gathering strategies individuals turned to in order to learn about nonprofit performance prior to making a donation. Results also revealed that greater confidence in nonprofits did not lead individuals to forgo efforts to obtain information on nonprofit performance altogether. The findings from this study suggest that it is important for nonprofit administrators to recognize, and then take into account, that not all individuals will rely on the same information sources when seeking to learn about nonprofit performance.

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