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CAUSE-RELATED MARKETING: HOW GENERATION-Y RESPONDS
COMPAD2
Angelo Luigi Q. Reparado
10910190
Ms. De Mesa
August 22, 2012

I. Introduction
Cause related marketing is collaboration between a corporation and a non-profit organization that is both beneficial for them. CRM creates a shareholder and social value for the both parties. It connects a range of people, who are the consumers, employees or suppliers. Cause-related marketing, or CRM, has exploded in recent years even though it is a relatively young concept (Fritz, 2012). American Express first used the phrase "cause-related marketing" in 1983 to describe its campaign to raise money for the Statue of Liberty’s restoration. American Express donated one cent to the restoration every time someone used its charge card. As a result, the number of new cardholders grew by 45 percent, and card usage increased by 28 percent (Kotler, 2012). The reason why this study is focusing on the Generation Y is because previous studies seldom focus on the behaviour of a specific age group. Generation Y is basically people with those born between 1977 and 1994 included (Rice, 2007). Generation Y is the fastest growing segment of today’s workforce. As law firms compete for available talent, employers cannot ignore the needs, desires and attitudes of this vast generation (Kane, 2012). Generation Y is known to have a high aggregate spending that is making businesses seek to capture this part of the market, and whether the CRM strategy will help them achieve their goals.

II. Characteristics of Respondents
There are now many versions of cause-related marketing, but basically it is an agreement between a business entity and a non-profit to raise money for a particular cause. The business entity expects to profit by this arrangement by selling more products and by enjoying the "halo" affect of being associated with a respected non-profit or cause (Fritz, 2012). A CRM is not a low-key kind of activity. It is intended for the public to know. The corporation who involves themselves in these kinds of activities sends the message to the consumers that they have the same interest in the same causes that they are socially responsible and they are aware of what is happening in social related problems. Cause-related marketing campaigns have blossomed over the last few years and can appear in a variety of interesting forms (Daw, 2009). CRM can improve product sales through selling specifically branded products that support certain charity. For example a certain variant or design of a product is intended to support a certain cause. There are different Cause-Related Marketing campaigns that companies use. One campaign is through purchase power. It refers to checkout points in a store, when consumers pay for items they want to acquire. They are asked if they want to add money in the donation bill. It is low-key and amounts are usually low, but it makes these programs easy to set up. Another one is through Licensing of the non-profit’s logo, brand and assets. It is the process of using a non-profit’s logos as a design for a product. Items that are usually used in this kind of activity are shirts, mugs, and other tangible products that can be sold in tie-up stores and as a return, profit from acquiring certain items will go to the institution. Co-branded events and programs is the involvement of the corporation in this program is deeper than the usual sponsorship. It is like co-hosting a charitable event that is more interactive and more involving for the employees of the company supporting the non-profit organization.

Four structural elements are positioned, namely: type of cause, geographic scope, type of support and length/frequency of support. This research focuses on young adults as represented by college-age members of Generation Y.

Research shows that consumers now-a-days expect more corporate social responsibility from firms. Research includes that emotional reactions and development...
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