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.
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.
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.
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.
