Cause‐related marketing: how generation Y responds

TLDR

Generation Y, the cohort born to baby boomers, is viewed as the next major consumer group, yet businesses struggle to capture its market share. This study examines whether cause‑related marketing can effectively engage Generation Y consumers. An experimental design tested college‑aged Generation Y responses to a CRM offer structured around four elements, while also assessing socio‑demographic influences. The CRM offer elicited stronger positive responses to disaster causes than ongoing causes when framed as non‑transactional, long‑term/frequent support, and evaluation was significantly influenced by gender, major, income, prior donations, with higher evaluation predicting greater purchase intent.

Abstract

Generation Y, children born to baby‐boomers, is widely considered to be the next big generation. Businesses are therefore struggling to find ways to capture a piece of this market. Could cause‐related marketing be the answer? Employs an experimental design to examine how college‐age Generation Y consumers respond to a cause‐related marketing (CRM) offer based on four structural elements. Also examines the potential impacts of socio‐demographic characteristics of participants. The results indicate that a CRM offer is more likely to elicit a more positive response to a disaster cause than an ongoing cause when businesses use non‐transaction‐based and long‐term/frequent support. Finds that females, social science majors, parents’ annual income and previous donation activity have significant impact on the evaluation of a CRM offer. There is a positive relationship between evaluation of a CRM offer and purchase intent toward the offer.