Empowering Luxury: How Cause-Related Marketing Influences Gen Z and Millennials' Post-Purchase Guilt in China's High-End Retail Landscape

Purpose: This study explores the emotional impact of post-purchase guilt on younger consumers in the Chinese luxury retail market, with a specific focus on the role of Cause-related Marketing (CrM) in mitigating negative emotions across luxury and non-luxury product categories.Design/Methodology/Approach: A quantitative experimental design was utilized, involving 326 respondents exposed to different advertising scenarios. The study tested the impact of CrM on post-purchase guilt in both luxury (high-priced) and non-luxury (moderately priced) product conditions, using a 2 × 2 factorial design. The data were analyzed using ANCOVA to assess the effects of CrM campaigns across conditions.Findings: The results demonstrate that CrM effectively reduces post-purchase guilt across both luxury and non-luxury product categories, providing a moral justification for purchases by linking them to a positive social cause. However, contrary to expectations, the impact of CrM was not significantly stronger in the luxury context compared to non-luxury. This suggests that CrM's influence on post-purchase guilt operates uniformly, regardless of product type.Originality: This research enhances understanding Millennial and Gen Z consumer behavior in the Chinese luxury market. The findings offer actionable insights for luxury brands, highlighting the effectiveness of CrM in addressing guilt-related concerns, thereby informing marketing strategies aimed at younger generations.Keywords: post-purchase guilt, Millennials, Gen Z, Chinese luxury retail industry, cause-related marketing.Acknowledgments: The first author would like to thank CEGE – Research Centre in Management and Economics, funded by The Multiannual Funding Programme of RD Centres of FCT – Fundação para a Ciência e Tecnologia under the project UIDB/00731/2020. The fourth author would like to thank COMEGI funded by FCT – Fundação para a Ciência e Tecnologia under the project UIDB/04005/2020.DOI: https://doi.org/10.58869/EJABM10(3)/06