Leveraging cause-related marketing for revenue growth: a millennial consumer study in the South African prestige beauty sector

Abstract

Cause-related marketing (CRM) is extensively used by prestige beauty brands to attract socially conscious consumers, however, its authentic effects on consumer trust and loyalty are still ambiguous. This study investigated how the transparency of a CRM message, that is whether it clearly states a donation or uses implicit symbolic cues, affects consumer perceptions of authenticity and trust. It further examined whether these perceptions impact consumer behavioural outcomes such as repeat purchases, positive word-of-mouth, and loyalty among millennial consumers in South Africa’s prestige beauty sector. The analysis was based on the Stimulus-Organism- Response (S-O-R) framework: message format as stimulus, authenticity and trust as organism, and consumer behavioural outcomes as response. A quantitative survey involving 250 millennial consumers in South Africa’s prestige beauty sector was conducted, and the data were analysed using Structural Equation Modelling. The findings indicated that message format alone does not exert a substantial direct influence (β = 0.038) on outcomes. Its influence is entirely mediated by authenticity and trust (Total effect = 0.722). A clear CRM message improves perceived authenticity and trust, consequently resulting in increased loyalty, repurchase intent, and positive word-of-mouth. This study confirms the S-O-R framework and emphasises that campaigns must cultivate genuine authenticity and trust to transform CRM into enduring consumer behavioural outcomes.