Determinants of donation intentions on second-hand trading platforms: the roles of psychological ownership, empathy and product layout

Abstract

Purpose While loss aversion has long served as the dominant explanation for the endowment effect, a growing body of research proposes that ownership fosters a cognitive and affective linkage between the object and the self, often termed the “possession-self connection,” thereby enhancing the perceived value of the item. Building on this perspective, this study investigates how psychological ownership toward second-hand luxury (SHL) influences consumers' willingness to donate such items. Specifically, it examines empathy as a key mediating mechanism and explores how product layout (neat vs. messy display) moderates the relationship between psychological ownership and donation intention. Design/methodology/approach We conducted three experiments to test the proposed relationships. Experiment 1 tested the effects of psychological ownership and product layout on donation intention. Experiment 2 examined empathy as a mediator between psychological ownership and donation intention. Experiment 3 further investigated the moderating role of product layout in the empathy-based mediation process. Findings The results show that higher psychological ownership significantly increases donation intention. Empathy mediates this main relationship, with product layout moderating in the empathy-based mediation process. Specifically, the mediating effect of empathy between psychological ownership and donation intention is stronger under neat display conditions. Originality/value This study seeks to strengthen consumer’ SHL through three interrelated strategies: fostering emotional attachment, refining visual merchandising practices and embedding empathetic narratives. By deliberately cultivating psychological ownership, visual signals and empathetic engagement, SHL can meaningfully increase consumer participation.