From bribes to bequests and gifts to gratuities: The black, white, and shades of gray of how and why consumers pay what they want

Abstract

This conceptual paper presents a framework that integrates 11 forms of voluntary payments as seemingly disparate as bribes and bequests, and gifts and gratuities to show that “voluntary” payments vary in the shades of gray not only in terms of how much like bribes they are but also in terms of how voluntary they actually are. We provocatively suggest that these payment types might be susceptible to becoming entrenched through self‐reinforcing norms because the voluntary payments are not necessarily voluntary and to an extent akin to bribes. Specifically, it provides an overarching framework to showcase the similarities and differences between bribes, lobbying efforts, suggested fees, pay what you want, tips, bequests, legacies, charity, crowdsourcing, dowry, and gifts, identifying gaps in domains that are under‐researched. Starting with the question as to whether a service has been, is being, or will be performed for the voluntary payment, and whether payments are made to an individual or a cause, the framework highlights the following: (1) the differences in the purpose underlying these payments, (2) the different modes of payment used; (3) the economic and social norms governing the payments; and (4) external and internal emotions associated with these payment types. The integrative framework allows for an amalgam of disparate literatures ranging from morality and behavioral pricing to charity and gift giving. The process model suggests a multitude of areas for future research in the domain of consumers' voluntary payment decisions.

Act of faith versus voluntary reciprocation: Asymmetric commitments in exchange relationships

“…For example, payment decisions that are acts of faith may be partially driven by the perceptions of risk and uncertainty regarding the other party, whereas payment decisions that are voluntary reciprocations may evoke greater social and moral concerns. Raghubir and Bluvstein (2024) and this article together provide a productive mapping and framework for future research toward a deeper understanding of the rich and varied domains of financial payments.…”

“…In particular, building on Raghubir and Bluvstein (2024), this article focuses on payment decisions in Exchanges with Unilateral Commitment. In particular, the buyer may be committed to paying a certain amount while the seller is not committed to a specific provision of goods and services (e.g., dowry payments, some charitable donations, and some bribes).…”

“…Nevertheless, these alternative types of payment situations so far have not received adequate attention from previous research. Filling this gap, Raghubir and Bluvstein (2024) provides us with a highly valuable, as well as thought-provoking and generative review of what these other types of payments may be. In particular, people pay bribes, engage in lobbying, pay suggested fees, "pay what you want," pay tips, make legacy bequests, donate to charity, participate in crowd sourcing, give monetary gifts, and provide dowries in marriage.…”

“…Expanding on the excellent review by Raghubir and Bluvstein (2024), this article focuses on one dimension by which payments differ, namely, whether the payments take place in an exchange with mutual versus unilateral commitment. This framework takes into account the timing and nature of commitment buyers and sellers make in an exchange and identifies situations where a committed outlay is made by only one of the parties.…”

Fifty‐two years of consumer research based on social exchange theory: A review and research agenda using topic modeling

“…The gifting market has demonstrated rapid growth and thereby offers great business opportunities. The global corporate gift market is estimated to be worth USD 250 billion in 2024 and will grow at a CAGR of 8%(Raghubir & Bluvstein, 2023). Accordingly, to leverage this lucrative opportunity companies need to build competencies in market research, customization and personalization, user friendly digital interface, and logistics and distribution management.…”