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assignment 3...

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AMB200 Consumer Behaviour Assessment Item 3: CB Report Words: 2366

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1.0 Context and Problem/Opportunity.....................................................................................3 2.0 Literature Review................................................................................................................4 3.0 Theory/Model/Framework.................................................................................................6 4.0 Recommendations..............................................................................................................8 5.0 References........................................................................................................................11

1.0 Context and Problem/Opportunity Charitable undertakings plays an unique role in the society. Because as the social environment changes, it is difficult for charities to continue to help people in need in the absence of government support and difficult economic conditions. Millennials are also known as Generation Y (Gen Y), which makes up 20% of the Australian population, and university students account for a large proportion. Thus, charities must get millennials as lifelong donors for future sustainability (Gorczyca, & Hartman, 2017). Youngcare believes Gen Y can help them, whether it is with money

donated or in other ways. Therefore, it is necessary for Youngcare to use different marketing strategies to attract more millennials to make donations. This report will use theory to analyze this issue and provide effective recommendation for Youngcare.

2.0 Literature Review Over time, millennials emerge in the labor market and potentially become the largest group of future leaders in business organizations. Apart from that, they are the main group of future consumers. Thus, Youngcare needs to get their support as soon as possible to sustain its growth (Weber, 2017). Charities offer a wide range of services to the society. However, since the charity group is more accepting of older, traditional supporters than younger generations, especially millennials, this may lead to a gradual decline in future donation (Paulin, Ferguson, Schattke & Jost, 2014). Over the past decades, the characteristics of donors and charitable giving have been studied, but the country’s political and economic environment makes it difficult for charities to raise money (Lwin, Phau, & Lim, 2014). As pointed out by Paulin et al. (2014), theories of self can explain millennial donor’s behavior, such as self-esteem, self-concept and self-awareness.

There are evidences supporting that millennial donors make up just 11% of all donors in donor campaigns, compared with 43% of baby boomers. This is all due to millennials’ consumption selfishness (Wallace, Buil & Chernatony, 2017). For donors, they increase donor behavior by addressing intrinsic self-interest, such as increasing self-esteem, public satisfaction, and self-satisfaction through donor obligations (Grace & Griffin, 2006). For millennials, self-interest is more important than the interests of others. For example, in some selfish desire, donors give more money to charity so as to increase their sense of well-being (Human,& Terblanche, 2012), which is an emotional drive that belongs to consumers. There is significant data showing that emotion-driven donors give more than cognitive-driven donors because this kind of behavior can satisfy the inner satisfaction of donors, which is in line with the psychological needs of millennials (Paniculangara & He, 2011). Furthermore, it

has been proved that millennials may want visible items to show off when it comes to their giving behavior. This is based on the conspicuous consumption theory and millennials’ selfish psychology. For example, wearing a ribbon (the pink ribbon of the cancer council) not only allows them to see behaviors related to giving, but also demonstrates the compassion of donors (Grace & Griffin, 2006). However, experts have found that giving is prosocial behaviors, yet differences in donor gender lead to differences in donor behavior, especially in the generation Y (Paulin, et al., 2014). Between men and women, egotism and altruistic charitable appeals are the opposite (Ye, Teng, Yu, & Wang, 2015). As stated by some experts, women are more enthusiastic, kind and compassionate, while men are more ambitious and confident in the competition to enhance their social status. Moreover, donating behavior is a prosocial and moral behavior which can bring benefits to others. Beyond that, it is everyone’s common goal. In fact, women have lower self-interest than men, so that they will pay more attention to charitable donations in society (Paulin et al., 2014). Youngcare may pay more attention to gender differences, which can help them better involve millennials in giving. Additionally, millennials are living in the age of technology, and social media, mobile phones and the Internet are an integral part of their lives (Weber, 2017).

As shown by numerous studies, Facebook is the most popular social media. For millennials, social media is the main means of communication with charities and supporters. Furthermore, charities can influence more users to make donations through social media (Paulin, Ferguson, Jost & Fallu, 2014). Nonetheless, some donors may choose to donate anonymously for fear of group exclusion. By contrast, social media is public, which is a drawback (Wallace, et al. 2017). Some study found that giving with social media has more advantages than disadvantages, as social media provides a platform for conspicuous consumption and meanwhile communicating via social media allows millennial donors to empathize and influence others (Gorczyca & Hartman, 2017). Furthermore, charities can attract donations and

build communities through Facebook, Twitter and other social media, because millennials tend to interact frequently online (Wallace, et al. 2017)

3.0 Theory/Model/Framework It is helpful to use theories of self to analysis Generation Y’s donor behavior. In western culture, personality is a very important self-feature. Meanwhile, consumers are very concerned about what others think of them (William & Michael, 1982). It is firstly worth mentioning that is perspectives on the self, which includes self-concept theory and self-esteem theory. The definition of self-concept is the recognition of one's own attributes and evaluation of these qualities, which divided into five elements, such as content, positivity, intensity, stability over time and accuracy. In addition, self-esteem is referring to the positive of a persons’ self-concept ( Patricia & Susan, 1998). Firstly, self-concept is very important to marketers because a person's

lifestyle and consumption behavior is largely influenced by the self-concept they are pursuing. Millennials want to be a sympathetic and socially friendly person, and the charitable donations bring the characters to their minds. This means that as long as this activity allows them to become the people they want to be, and in the eyes of others, they are positive, so they will do it. Besides, because millennials want to be high self-esteem, this shows that they want to be the center of society and are willing to take on higher risks. Therefore, when they find that they can improve their selfesteem while donating, they are willing to do it. At the same time, according to the social comparison theory, consumers will compare with others in the process of consumption, thus affecting themselves (James, John & Harold,2002 and Albert & Thomas,

2001). Millennials are more involved in the upward trend, which is a trend in society.

For example, other people have gained happiness and satisfaction because of donations, and their social status has also improved, thus affecting their own contributions. Charities can implement marketing strategies based on these characteristics of donors.

Moreover, the definition of Symbolic self-completion theory suggests that a person with incomplete self-definition completes his or her missing identity by purchasing a product with a specific attribute ( Robert & Alain, 1975). This theory plays an important role in the formation of self, which means that based on this commodity, people will give a specific view. When donors are found to be involved in this donation at the time of donation, this will change the perceptions of others about donors, and agree that your personal character is good, which may lead to an increase in social status. Especially for millennials, others think that millennials are selfish people, so they are willing to donate to change others' perceptions of themselves and think they are compassionate people. This is also related to the ideal self-theory, which suggests that consumers may want to become this character because the image in the advertisement is positive (DJ Stang,1979 and RB Zajonc, P Shaver, C Tavris & D Van Kreveid, 1972). Consumers buy certain products because they

can achieve the consumer's goals in order to achieve the desired self-setting. Therefore, millennials are willing to do charity because they want to be a compassionate and willing to help others.

4.0 Recommendations Product marketing is an important part of the sales process. This combination is made up of 4P, which are price, product, promotion and pricing. Using this marketing mixes to make effective recommendations for Youngcare to address their lack of millennial contributions. There are three recommendations provides below:

Recommendation 1(promotion): Provide a thankful pack when donors donate. Many young people cannot let others know about their donations because of donations, and even do not have any commemorative items after donations, resulting in a decline in their donations or even no donations. If a thankful is provided to each donor at the time of donation, they may be motivated to make a donation, which is due to the millennial generation showing off consumer psychology. In this package, Youngcare can include a thank you card with the name and gratitude of the person in need of help, which also allows the donor to know who his money helped. In addition, Youngcare could also write on the card about what kind of team is Youngcare, what they are doing, how donors can join them (whether donate money or time). Even in this pack, they can include a gift that focuses on the reasons of them, such as handmade dolls, refrigerator stickers, badges and shopping bags. This gift allows the donor to think of the Youngcare team when they see it, and they need the millennial generation to join in it. The reason for giving this thankful pack is that they belong to a new donor, and it is necessary for the charity team to tell the donor what the work of the team is and what they have to do with it. Furthermore, this gift package is a first impression for the donor, because with a good first impression, the probability of a second appearance of the donor will increase. In addition, this can also allow millennials and their friends to show off and satisfy their conspicuous because millennials are selfish, and they may not do it if it is not for their own benefit. Moreover, this thankful pack can be done in a variety of ways, such as physical mailing and face-to-face, because millennials may choose to

donate more online, so mailing may be the most common method. Also, Youngcare can send e-mial to donors, thanks for their help, and can send blessing emails to donors at various festivals, this method can help donors remember that this institution needs help. Overall, everything to do is to thank the donors for their help, and let them know that Youngcare needs help, whether donor behavior is money or time.

Recommendation 2(promotion): Youngcare can choose to advertise online. The reason for online advertising rather than physical advertising is that millennials spend more time on the web, so they see online ads more often than they see physical ads, which allows advertising to play a high role. Online advertising is one of the most effective advertising strategies and channels that marketers consider to be effective because of its many advantages, such as rich content, strong exchangeability and clear goals (Peng, Zhang, Zhang, Dai, & Li, 2014). If Youngcare post an advertising on the web, this expands the form of the advertising, not just a static advertising (a picture plus a paragraph). First, Facebook is one of the most common social media, so Youngcare can create a dedicated account to share their work daily, or even share positive results from donor donations, on the web. Users can see that under the efforts of Yongcare, every young person in need of help finally gets the best help and encourages everyone to participate in the work of Youngcare. The second one is Youngcare can create an advertising short film to promote their work. Short films are especially common on different social media. For example, when watching videos on youtube, everyone can not avoid having to look at some advertisements, and these advertisements will also impress the viewers, so that more people know the charity of Youngcare. Only if more young people realize the brand of Youngcare, will they have the opportunity to get more people to donate. Additionally, the content of the film can be filmed about young people who are helped by Youngcare have a better life, and they are also call other people to participate in charity activities. When donors saw the film, they knew that their help

for Youngcare was very effective, and then donors could gain self-satisfaction and self-esteem, and they could also tell the friend that the young man was because of Helping to get a better life is also conducive to stimulating the comparison of people around donor, thus promoting more people to participate in donations.

Recommendation 3(promotion): Youngcare can form partnerships with different schools. Although this partnership is based on volunteer activities, Youngcare can still get more financial support through this volunteer activity. Students are an important part of the millennial generation, and they are also a major group of future consumers, so getting their financial support is a long-term strategy for sustainable development. Firstly, a volunteer group can be organized in the school, and Youngcare can give a thank-you letter or a volunteer certificate to the outstanding volunteers in the volunteer group. This is because millennials are self-interested, if not profitable. As a result, they will not be willing to volunteer if there is no interest for them. At the same time, volunteer activities can enhance their social status, let them think that they are a person who is helpful to the society, and even the volunteer service certificate for the future learning and work of millennials all played a beneficial role. When it comes to raising money, Youngcare can make volunteers and young people in need to make simple handcrafts such as clay dolls or paintings. These toys can not only be used as a small gift in the bag, but also as a sale item, and even bring some manual activities to the daily life of young people in need, which can make their lives happy. There are many market events in Western countries. Youngcare can sell handmade products through market events, and even promote the concept of Youngcare through market events, or raise funds at the market. Moreover, different universities also have different events, like orientation and market event. At the event, Youngcare can promote themselves in these activities and let more young people join the Youngcare team. In addition, people who

participate in donation activities can wear an iconic badge to let more people know that they are a compassionate person.

5.0 References DJ Stang, ‘Methodological factors in mere exposure research’, Psychological Bulletin, 81, 1974, pp. 1014–25; RB Zajonc, P Shaver, C Tavris & D Van Kreveid, ‘Exposure, satiation and stimulus discriminability’, Journal of Personality and Social Psychology, 21, 1972, pp. 270–80 Grace, D., & Griffin, D. (2006). Exploring conspicuousness in the context of donation behaviour. International Journal of Nonprofit and Voluntary Sector Marketing, 11(2), 147– 154. https://doi.org/10.1002/nvsm.24 Human, D., & Terblanche, N. (2012). Who Receives What? The Influence of the Donation Magnitude and Donation Recipient in Cause-Related Marketing. Journal of Nonprofit & Public Sector Marketing, 24(2), 141–160. https://doi.org/10.1080/10495142.2012.680317 Patricia M, W., & Susan M, B. (1998) Integrating multiple opinions: The role of aspiration level on consumer response to critic consensus, Journal of Consumer Research, 25, pp. 38–51. Paulin, M., Ferguson, R., Schattke, K., & Jost, N. (2014). Millennials, Social Media, Prosocial Emotions, and Charitable Causes: The Paradox of Gender Differences. Journal of Nonprofit & Public Sector Marketing, 26(4), 335–353. https://doi.org/10.1080/10495142.2014.965069 Paniculangara, J., & He, X. (2011). Affect, Cognition, and Consumer Charity: the Moderating Role of Social Distance. Advances in Consumer Research, 39. Retrieved from http://search.proquest.com/docview/1810362816/ Paulin, M., J. Ferguson, R., Jost, N., & Fallu, J. (2014). Motivating millennials to engage in charitable causes through social media. Journal of Service Management, 25(3), 334–348. https://doi.org/10.1108/JOSM-05-2013-0122 Peng, J., Zhang, G., Zhang, S., Dai, X., & Li, J. (2014). Effects of online advertising on automobile sales. Management Decision, 52(5), 834–851. https://doi.org/10.1108/MD-10-2012-0753 William O, B., & Michael J, E. (1982) Reference group influence on product and brand purchase decisions, Journal of Consumer Research, 9, pp. 183–94. James H, M., John, W., & Harold F, K. (2002) Building brand community, Journal of Marketing, 66, pp. 38–54; Albert M., & Thomas, O. (2001) Brand community, Journal of Consumer Research, pp. 412–32. Lwin, M., Phau, I., & Lim, A. (2014). An Investigation of the Characteristics of Australian Charitable Donors.

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