Millennials and CSR
To identify the main factors that drive the purchase decisions of millennials, how these factors align with their support of Starbucks, and what Starbucks is doing to stay on top.
- According to Forbes, millennials value price over recommendations, the brand’s reputation, and even product quality. 66% of millennials would switch brands if offered at least a 30% discount. However, 60% will remain loyal to a customer-centric brand that treats them well.
- The article further states that Millennials also value authenticity, local sourcing, ethical production, a great shopping experience, and giving back to society. 75% consider it "fairly or very important that brands give back to society instead of just making a profit."
- According to Frontify, "Millennials are relentless and obsessive in their quest for authenticity." According to market research, 50% of millennials are more likely to purchase from a company that supports a cause.
- Combs Advisory Services supports the above finding and states that 58% of millennials think it’s important that brands they support invest in causes they care about.
- Content Science Review shows that Starbucks is among the brands that have been successful in marketing to millennials. It states that "Starbucks is meeting the Millennial consumer’s desire for social activism with a new campaign that calls for “acting locally to create impact globally.” This is a smart move considering nearly one-third of Millennials’ purchasing decisions are based on a brand’s corporate values."
- According to a survey, a nearly equal proportion of respondents chose "product quality" (52.9%) and "support of local charity" (52.8%) as the most favorable quality of Starbucks. 42.5% of respondents chose "direct donation to charity" while for 41.2% it was "CSR initiatives." A third of the survey respondents were millennials.
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