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My name is Krasimira and I need some assistance in writing a research paper which is sustainable business oriented. I can send you the requirements and a paper I wrote but I failed on it. I need some editing and improvement. I can guide you so we can collaborate. I will send you the notes I got from the teacher. We can also slightly change the topic. We need to have main question and sub questions as you see on the notes from the teacher. If I can help you with something else please let me know. Best, Krasimira Journal of Business Research 74 (2017) 162–167 Contents lists available at ScienceDirect Journal of Business Research Staging luxury experiences for understanding sustainable fashion consumption: A balance theory application Jinghe Han c, Yuri Seo b, Eunju Ko a,⁎ a Fashion Marketing, Department of Clothing & Textiles, Yonsei University, 50 Yonsei-ro, Seodaemoon-gu, Seoul 120749, Republic of Korea b Department of Marketing, Business School, The University of Auckland, Owen G Glenn Building, 12 Grafton Road, Auckland, Private Bag 92019, Auckland 1142, New Zealand c Department of Clothing & Textiles, Yonsei University, 50 Yonsei-ro, Seodaemoon-gu, Seoul, Republic of Korea ⁎ Corresponding author. E-mail addresses: [email protected] (J. Han), y.seo [email protected] (E. Ko). http://dx.doi.org/10.1016/j.jbusres.2016.10.029 0148-2963/© 2016 Published by Elsevier Inc. a b s t r a c t a r t i c l e i n f o Article history: Received 1 August 2016 Received in revised form 1 October 2016 Accepted 1 October 2016 Available online 24 December 2016 Increasingly, sustainable fashion products consumption (SFPC) receives attention from both academic scholars and practitioners. While fashion consumers profess concerns about sustainability issues, the extant literature demonstrates a gap between such concerns and actual consumption decisions and behaviors. This study illus- trates how marketers can encourage contemporary consumers to become strongly oriented toward sustainable fashion product consumption (SFPC). Heiders balance theory and consumer luxury brand experiences explain and reveal how a state of psychological imbalance causes the attitude–behavior gap between sustainable fashion and SFPC behaviors. This report includes new propositions explaining SFPC that receive support via focus group interviews and direct observations and post-behavior interviews of staged shopping trips— each participant was given money (approx. USD $180) to spend in the two eco-fashion stores. Developing and staging memorable consumer-centered experiences that orient consumers toward SFPC encourages the consumers achieving de- sired balance states. © 2016 Published by Elsevier Inc. Keywords: Balance theory Eco-fashion Luxury experiences Sustainable fashion 1. Introduction For decades, fashion companies have been criticized for unsustain- able conduct that negatively impacts environmental quality and human well-being by producing high levels of carbon emissions, poor labor conditions, excessive waste, and chemical usage (Luz, 2007). To address these concerns, some fashion companies are developing sus- tainable products and business practices (Jang, Ko, Chun, & Lee, 2012), a sustainable or eco-fashion movement (Gwilt & Rissanen, 2011). Sus- tainable fashion lacks a single definition; however, the concept broadly refers to a range of corporate undertakings to “correct a variety of perceived wrongs in the fashion industry including animal cruelty, envi- ronmental damage, and worker exploitation” (Lundblad & Davies, 2015, p. 149). Sustainable fashions major challenge remains that “fashion cus- tomers are hungry for goods…Low prices, good design, good quality fashion clothing items, coupled with an exciting shopping leisure expe- rience on the cheap, mean an increase in purchases, which is difficult to reconcile with the idea of looming environmental Armageddon” (Gwilt & Rissanen, 2011, p.21). Although fashion consumers profess sustain- ability concerns, their actual consumption behaviors poorly reflect @auckland.ac.nz (Y. Seo), such responsibility (Chan & Wong, 2012; Joy, Sherry, Venkatesh, Wang, & Chan, 2012; McNeill & Moore, 2015). Consequently, this study offers a novel perspective to show how marketers might educate contemporary consumers to become more strongly oriented toward sustainable fashion products consumption (SFPC). Specifically, informed by recent applications of Heiders balance the- ory (e.g., Hsu, Dehuang, & Woodside, 2009; Martin & Woodside, 2011) and luxury brand experiences in marketing (Atwal & Williams, 2009; Pine & Gilmore, 1998), a participatory action investigation (Ozanne & Saatcioglu, 2008) investigates young fashion consumers in South Korea regarding their SFPC attitudes and practices. Results support the proposition that consumers are in constant state of psychological imbalance, an attitude–behavior gap, between their sustainability con- cerns and their own SFPC. Developing and staging memorable consum- er-centered experiences allows marketers to encourage more positive SFPC orientations and help achieve a balanced state (Pine & Gilmore, 1998). This study makes three major contributions relevant to sustainable fashion products. First, this study applies Heiders (1958) balance theory to explain the gap between consumers ethical attitudes and purchasing behaviors. Second, the results help to develop a novel perspective to re- duce the imbalance by staging memorable experiences. Third, this study reports an emic (i.e., first-person) perspective on how fashion con- sumers may interpret the staged fashion experiences and how they ex- perience immediate and long-term impacts on their SFPC engagement. http://crossmark.crossref.org/dialog/?doi=10.1016/j.jbusres.2016.10.029&domain=pdf http://dx.doi.org/10.1016/j.jbusres.2016.10.029 mailto:[email protected] mailto:[email protected] mailto:[email protected] Journal logo http://dx.doi.org/10.1016/j.jbusres.2016.10.029 Unlabelled image http://www.sciencedirect.com/science/journal/01482963 163J. Han et al. / Journal of Business Research 74 (2017) 162–167 2. Conceptual background 2.1. Sustainable fashion paradox Increasingly, academics and practitioners are turning attention to ethics, environmental concerns, and sustainability issues relating to af- fordable, trend-sensitive, and fast-fashion (Chan & Wong, 2012; Joy et al., 2012; Sun, Kim, & Kim, 2014). They strive to determine how fashion consumers form evaluative judgments and make purchasing decisions about products positioned as eco-friendly or sustainable. On one hand, strong evidence suggests a growing consumer concern about sustain- ability issues (Kim et al., 2015; Maloney et al., 2014). For instance, a 2014 Nielsen survey of 30,000 people in 60 countries reveals that 55\% are “willing to pay more for products and services provided from com- panies that are committed to positive social and environmental impact” (Johnstone & Tan, 2015). Further, evidence suggests growing consumer awareness that “individual consumption fosters organizational produc- tion, creating an ongoing cycle of appetite, simultaneously voracious and insatiable” (Joy et al., 2012, p. 277). Recognizing these trends, the sustainable fashion industry seeks to convert fashion consumers posi- tive environmental concerns into actual purchases. Recent reports indicate that consumers appear reluctant to adopt sustainable fashion. Many consumers demonstrate inconsistent pro- sustainability attitudes and SFPC behaviors. McKinsey and Companys 2014 global fashion market study finds that fashion consumers are be- coming more environmentally conscious, but surprisingly few of these consumers are willing to pay more for eco-friendly products (Keller, Magnus, Saskia, Nava, & Tochtermann, 2014). Thus consumers some- times fail to “walk their talk” (Carrington, Neville, & Whitwell, 2010; Chan & Wong, 2012; Johnstone & Tan, 2015; McNeill & Moore, 2015), creating a “sustainable fashion paradox.” In other words, consumers share sustainability concerns and expect fashion companies to show so- cial commitment; however, they do not exhibit SFPC behaviors themselves. Sustainable fashion scholarship postulates various explanations for this consumption paradox. One research stream argues that product-re- lated (e.g., product design and quality) and store-related (e.g., store de- sign, environment, and convenience) attributes affect SFPC adoption (Chan & Wong, 2012). Results imply that fashion consumers perceive sustainable products as inferior to fast-fashion in terms of product and store attributes (Kim et al., 2014). As a result, consumers are reluctant to engage in SFPC. Other research suggests that fashions very nature is to display consumer identity (Thompson & Haytko, 1997) and fulfill the “insatiable demand for newness” (Barnes & Lea-Greenwood, 2006, p. 269). These intrinsic drives to be “fashionable” outweigh needs to be socially responsible (McNeill & Moore, 2015). Finally, young con- sumers may perceive sustainability and fashion as two separate con- structs within their cognitive schemas (Kong et al., 2016). They may support sustainability, but consumers categorically separate this value from their purchases of fashion products (Joy et al., 2012). Despite the various explanations regarding attitude–behavior dis- crepancy in SFPC, a compelling theoretical underpinning is lacking. Nev- ertheless, the emerging research concedes that fashion consumers are aware of sustainability issues, but they experience various sociological, perceptual, and motivational barriers that prevent them from partici- pating in SFPC. Therefore, both practitioners and researchers need a deeper understanding of the consumer-centric processes and mecha- nisms for overcoming barriers. 2.2. Sustainable fashion paradox and Heiders balance theory Heiders (1958) balance theory postulates that individuals generally seek to maintain internal harmony and order among their attitudes, values, and behaviors (Dalakas & Levin, 2005; Levin, Davis, & Levin, 1996; Woodside, 2004; Woodside, Cruickshank, & Dehuang, 2007). Ac- cordingly, if elements are imbalanced, consumers are likely to change their attitudes and/or behaviors to appropriately restore the equilibri- um. Indeed, statements such as “my friends enemies are my enemies” and “my enemies enemies are my friends” illustrate balance theorys key premise (Dalakas and Levin, 2005, p. 91). More specifically, Heider (1958) (cited in Woodside, 2004) explains that individuals perceive separate entities (e.g., persons, activities, or objects) as having unit and sentiment relationships. Unit relationship occurs if a perception that two entities belong together exists. Entities with positive or negative associations have a sentiment relationship. If entities have a balanced state: the relations among the entities fit together harmoniously; there is no stress toward change. A basic assumption is that sentiment rela- tions and unit relations tend toward a balanced state. This means that sentiments are not entirely independent of the perceptions of unit connections between entities and that the latter, in turn, are not entirely independent of sentiments. Sentiments and unit rela- tions are mutually interdependent. It also means that if a balanced state does not exist, then forces toward this state will arise. If a change is not possible, the state of imbalance will produce tension (Heider, 1958, p. 201). Furthermore, units are grounded in cognition and sentiments are grounded in affection, representing independent theoretical constructs (Woodside, 2004). When imbalance occurs, individuals try to eliminate the tension and resolve their psychological state of imbalance by chang- ing their beliefs, attitudes, and behaviors (Martin, 2010; Woodside & Chebat, 2001). Heiders theory helps to understand the sustainable fashion paradox and SFPC behaviors. Specifically, fashion consumers are the individuals of interest. The two separate entities are their general attitudes toward sustainability issues (entity 1) and SFPC (entity 2). Informed by previ- ous studies (Joy et al., 2012, is a notable exception), these two entities form a unit relationship. Fashion consumers perceive that sustainability issues and eco-fashion consumption belong together (Chan & Wong, 2012; McNeill & Moore, 2015). Moreover, the two units display con- flicting sentiments. Specifically, fashion consumers have positive senti- ments toward entity 1 as evident from previous research documenting growing sustainability issue concerns (e.g., Joy et al., 2012; Keller et al., 2014). However, fashion consumers simultaneously have negative sen- timents toward entity 2 due to their lack of engagement in SFPC behav- iors (Chan & Wong, 2012; McNeill & Moore, 2015). Thus, the sustainable fashion consumption paradox reflects a state of psychological imbalance for fashion consumers. Proposition 1: Sustain- able fashions attitude–behavior gap is a state of psychological imbalance. Assuming the sustainable fashion paradox is a state of psychological imbalance, how should marketers to resolve this paradox? Heider (1958) suggests that consumers choose from three distinct paths to re- store balance. The first alternative is developing negative sentiments to- ward sustainability issues. When consumers perceive sustainability and SFPC as representing the unit, and they both are unfavorable entities, sentiments are no longer in conflict. In the second scenario, the unit re- lationship between sustainability and SFPC is broken (Joy et al., 2012). Although the sentiments for both entities are in conflict, they are sepa- rate, avoiding imbalance. Third, developing a more positive orientation toward SFPC and maintaining the unit relationship between SFPC and sustainability achieves balance. In this last scenario, both the unit and sentiment relationships fit together positively and harmoniously, re- ducing or eliminating stress relating change. Among the three options, marketers should work toward the third alternative. Reminding fashion consumers that sustainability and SFPC behaviors are interconnected leads to the best outcome. Proposition 2: To resolve the sustainability fashion paradox, marketers helps consumers to develop more positive SFPC orientations and reinforces the perceived interconnectedness be- tween sustainability issues and SFPC behaviors. Table 1 Participant profiles. Participant Age Gender Education Monthly fashion spending (USD equiv.) PAR observation 1 30 M Postgraduate $100–$300 NO 2 30 M Postgraduate $400–$500 NO 3 30 M Postgraduate N$100 YES 4 32 M Postgraduate $100–$300 NO 5 26 F Undergraduate $100–$300 YES 6 25 F Undergraduate $100–$300 YES 7 30 F Postgraduate $100–$300 NO 8 31 F Postgraduate $100–$300 NO 9 28 F Postgraduate $300–$500 NO 10 23 M Undergraduate $300–$500 NO 11 35 F Postgraduate $100–$300 NO 12 30 M Postgraduate $500–$700 YES 13 29 F Postgraduate $100–$300 NO 14 26 F Postgraduate $300–$500 NO 15 25 F Postgraduate N$100 YES 16 26 M Postgraduate $100–$300 NO 17 30 F Postgraduate $100–$300 NO 18 25 F Undergraduate $100–$300 YES 19 26 M Undergraduate N$100 NO 20 26 M Undergraduate N$100 NO 21 26 F Postgraduate $300–$500 YES 22 25 M Postgraduate $500–$700 YES 23 23 M Undergraduate $500–$700 NO 24 30 M Postgraduate $300–$500 NO 164 J. Han et al. / Journal of Business Research 74 (2017) 162–167 2.3. Sustainable fashion and luxury experiences A focal practice of luxury branding is to foster cult-like unique brand cultures by staging memorable consumer experiences (Atwal & Williams, 2009; Seo, Buchanan-Oliver, & Cruz, 2015). Beyond superior functional features, luxury brands deliver sensory experiences to create social mystique and aura (Berthon, Pitt, Parent, & Berthon, 2009). Stag- ing experiences to teach consumers about the social value of luxury goods, inspire taste and appreciation (Brun & Castelli, 2013). The events cultivate a sense of escapism and personal relevance, and develop inti- mate consumer/brand relationships (Kim & Ko, 2012). Thus, luxury companies design and stage memorable consumer experiences to cre- ate superior customer-perceived value (Wiedmann & Hennings, 2013; Ko, Phau, & Aiello, 2016). Recent studies draw parallels between sustainable fashion and luxu- ry brands. In particular, growing research indicates that sustainability issues and luxury branding have complex co-influence interrelation- ships (Joy et al., 2012; Beckham & Voyer, 2014). Although sustainability concerns remain nascent, they shape consumer perceptions about luxu- ry brands and perceived value (Kapferer & Michaut, 2015). On the other hand, luxury branding with “concomitant respect for artisans and the environment” fosters stronger pro-sustainability values among young fashion consumers (Joy et al., 2012). Luxury branding techniques and elements can apply to sustainable fashion marketing and vice-versa. Interconnectedness between sustainable fashion and luxury brand- ing suggest that staging memorable experiences for fashion consumers strengthens perceptions of the unit relationship between sustainability issues and SFPC, and develops a stronger SFPC orientation. Given that staged experiences offer proactive learning and consumer engagement (Brodie, Hollebeek, Juric, & Ilic, 2011), sustainable fashion companies should consider staging memorable experiences associating with sus- tainable fashion to strengthen consumer orientation toward SFPC. Prop- osition 3: Staging memorable sustainable fashion experiences fosters a more positive orientation toward SFPC, while reinforcing the perceived interconnectedness between sustainability issues and SFPC behaviors. 3. Methods The sustainable fashion literature is nascent—not rich enough yet to provide a sound conceptual foundation for investigating how staged ex- periences help overcome the sustainable fashion paradox. To investi- gate the three propositions, an exploratory study was conducted. Specifically, the study employed a multi-method participatory action research (PAR) investigation (Ozanne & Saatcioglu, 2008) involving focus group interviews (FGIs), participant observations, and in-depth interviews with South Korean fashion consumers. PAR, a methodological paradigm within consumer welfare research, is “a participatory, democratic process concerned with developing prac- tical knowing in the pursuit of worthwhile human purposes” (Reason & Bradbury, 2001, p.1). The main purpose of such research is to develop knowledge for social action. PAR is an appropriate method for several reasons. First, action research is particularly useful for improving con- sumer welfare (Ozanne & Saatcioglu, 2008). Thus, encouraging fashion consumers to behave more sustainably is consistent with the studys pursuits. Second, unlike other research traditions, PAR involves con- sumers throughout the research process (Ozanne & Saatcioglu, 2008). The sustainable fashion paradox is a consumer-centric problem requir- ing an emic (i.e. first-person) understanding of how consumers think, feel and behave (Gwilt & Rissanen, 2011). Moreover, despite emerging interest over the last few years, sustainable fashion research remains nascent. Accordingly, collaborating with fashion consumers throughout the research process offers novel insights into SFPC. Finally, action re- searchers seek to develop knowledge that can be applied to cultivate “change across individuals, group, and national behaviors and develop solutions in collaboration with consumers that are also sensitive to their needs and desires” (Ozanne & Saatcioglu, 2008, p.424). Fashion consumers are aware of sustainability concerns, but they encounter var- ious barriers that prevent them from SFPC behaviors. Thus, consumers participating in this action research project may learn to overcome such barriers. 3.1. Research design This study focuses on young adult consumers of fashion products in Seoul, South Korea. Young consumers tend to be highly involved in fash- ion, attracted to trends, and drawn to unique differentiating products (Belleau, Summers, Xu, & Pinel, 2007). Furthermore, they tend to be the key purchasers of fast-fashion products, a major concern for sustain- ability (Joy et al., 2012). The research team was particularly interested in developing a deeper understanding of how young consumers perceive sustainable fashion, and how they can be encouraged to be more en- gaged with SFPC. Study participants were recruited from a large private university in Seoul, South Korea. The sample included 12 men and 12 women ranging from 23 to 30 years old, self-identifying themselves as interested in and knowledgeable about current fashion trends, and reporting at least some familiarity with sustainable fashion. They were not required to have prior experience in purchasing sustainable fashion products. These criteria reflect the researchers interest in issues relating to bar- riers preventing SFPC behaviors. Consistent with the PAR approach, par- ticipants were informed that the research projects purpose was to study how consumers can be encouraged to purchase sustainable fash- ion products. Participants were told that their participation would help to develop novel solutions for sustainable fashion consumption prac- tices (Ko et al., 2013). Table 1 shows brief participant profiles. A two-stage iterative analysis was adopted to uncover and explore the three propositions concerning sustainable fashion consumption. At the first stage, twenty-four participants were assigned to four focus groups of six people each. Focus groups were interviewed once from Oc- tober to November 2015. During the focus group interviews (FGIs), broad guidance questions were used to open and facilitate discussion. For example, “What do you think about eco-friendly fashion products and brands?” These questions were aimed at deriving themes related to perceptions about sustainability issues and SFPC, possibly indicating a state of psychological imbalance (Proposition 1). Preliminary findings indicate that participants perceived sustainability to be an important 165J. Han et al. / Journal of Business Research 74 (2017) 162–167 issue in fashion, but they had mixed opinions and feelings about wheth- er or not they wanted to engage in SFPC behaviors. Thus, the FGIs of- fered initial supporting evidence that the attitude–behavior gap in sustainable fashion is a state of psychological imbalance. The next sec- tion provides a more detailed discussion of the emergent themes. The second stage, explored how staged experiences may restore psychological imbalances by fostering more positive SFPC orientations, while reinforcing the perceived interconnectedness between sustain- ability issues and SFPC behaviors (Propositions 2 and 3). Several PAR ob- servations were conducted with eight participants from the initial sample (Participants 3, 5, 6, 12, 16, 18, 21, and 22), and staged individ- ualized sustainable fashion consumption experiences. More specifically, two eco-fashion brand stores in Seoul permitted participants to partake in an exclusive shopping experience at the stores between January and May 2016. Ozanne and Saatcioglu (2008) suggest that research partici- pants become valuable co-contributors if their goals aligned with the re- search objectives (i.e., to create positive social change). Prior to the staged visits, participants were informed that the researchers goal was to learn how personal shopping experiences foster deeper consid- erations about sustainable fashion consumption. Next, each participant was given money (approx. USD $180) to spend in the two eco-fashion stores. One author accompanied partici- pants and closely observed their comparison of alternatives and pur- chase behaviors. After the shopping, each person participated in a semi-structured long interview to question them about their experi- ences (McCracken, 1988). Stage two participants were interviewed twice—immediately after visiting each store. The final analysis combined results to determine whether and how the staged experiences may develop more positive SFPC orientations. During this process, several procedures were undertaken to ensure con- sistency and accuracy in interpretations. First, multiple methods of data collection were used to compare interpretations, including FGIs, PAR observations, and semi-structured interviews. Second, each researcher reviewed the data independently (inter-rater agreement was about 75–80\%). Disparities were settled by iterative discussion and achieving a general consensus on the final themes. 4. Results 4.1. Sustainability in fashion and SFPC Findings from the FGIs support the proposition that fashion con- sumers may experience a state of psychological imbalance regarding SFPC issues (P1). Specifically, respondents recognize the importance of sustainability considerations, but they have reservations about purchas- ing sustainable fashion products. 4.1.1. Attitudes toward sustainability in fashion Consistent with prior studies (e.g., Joy et al., 2012; McNeill & Moore, 2015), results show that young consumers perceive sustainability as an important issue in the fashion industry. They also recognize their own ability to make a difference through their consumption choices. For in- stance, one participant notes that fashion companies are shifting their purely profit-driven strategy toward considering sustainability issues because changing consumer preferences are putting pressure on the industry. Sustainable fashion was not popular at one time, but environmental and social issues show growth possibilities…In the past, companies thought only about profits, but now they need sustainability for the brands image and to fulfill consumer preferences (Participant 21). Participants noted that they engage in pro-sustainable practices; however, they do not necessarily purchased sustainable fashion prod- ucts. For instance, Participant 3 considers purchasing fashion products from a second-hand shop to be more sustainable than buying eco-fash- ion products: I think consumers of used goods contribute to sustainability and eco- friendliness. Even eco-friendly and sustainable products are new. Recycling unsold items is popular: its all about the second-hand market. There are many second-hand markets like the one on NAVER (Korean website). Buying from the second-hand market is to practice sustainability and seems better to me. Thus, a key theme emerging from the FGIs is that young consumers tend to be aware of sustainability concerns in fashion and they proac- tively act to address their concerns. Although informants describe vari- ous pro-sustainable consumption practices (e.g., purchasing second- hand clothing), they do not necessarily include SFPC behaviors. 4.1.2. Unwillingness to purchase sustainable fashion products Consumers have various reasons for avoiding SFPC behaviors (Chan & Wong, 2012; McNeill & Moore, 2015), but prior research offers little about their emic (i.e., first-person) perspectives. Study FGIs identify three distinct but interrelated themes describing why consumers are unwilling to purchase sustainable fashion products: (1) negative quality perceptions; (2) the lack of justification for paying a premium price; and (3) the lack of social awareness about the value of eco-fashion products. First, participants reveal that they perceive sustainable fashion to be inferior in terms of product design and quality characteristics. Specifi- cally, many associate eco-friendly products with unattractive appeals and limited selections: “I do not purchase sustainable fashion products because of their unattractive designs” (Participant 11, aged 35). “If their design, quality, and variety improve, I would be willing to pur- chase sustainable fashion products” (Participant 21, aged 26). Further- more, established preconceptions that eco-fashion products lack quality dissuade consumers from justifying the price premiums. “Price is the most important. I will never buy eco-fashion products if they are ridiculously expensive” (Participant 1, aged 30). “I do not feel the need to buy eco-fashion products. In the case of X brand, sustainability intentions are a good principle, but the products are costly and aesthet- ically unappealing” (Participant 2, aged 30). Crucially, FGIs reveal that the nexus of overpriced and poor quality perceptions may come from lack of awareness and social capital surrounding knowledge about eco-fashion rather than actual product performance. Specifically, participants note that they have few opportu- nities to learn about sustainable fashion through media and/or con- sumption experiences. This lacuna negatively impacts their personal perceptions of eco-fashion products. “Sustainable fashion brands do not organize fashion shows and or advertise to any extent” (Participant 2, aged 30). As clothing purchase decisions are a tactile experience, looking at new products likely is not enough to sway many consumers. “Advertisements alone will not encourage sustainability: people must use and experience products before they will feel familiar enough to buy them” (Participant 15, aged 25). In conclusion, the emergent themes support P1. Results demonstrate an attitude–behavior gap exists in sustainable fashion that creates a state of psychological imbalance. Specifically, fashion consumers ex- press concern about fashion sustainability issues, but they are unwilling to engage in SFPC due to established negative … Chapter 2 Green Brand Strategies in the Fashion Industry: Leveraging Connections of the Consumer, Brand, and Environmental Sustainability Hye-Shin Kim and Martha L. Hall Abstract With a growing number of major fashion brands engaging in green- branding initiatives, environmental sustainability is becoming a management agenda that is being prioritized among many companies. However, the research literature is mixed in assessing the potential of the green strategy. Based on the schema theory as the theoretical framework, this chapter offers propositions that address how to leverage the interrelationship among the consumer, brand, and environmental sus- tainability within the context of green-branding strategies for fashion. Supported by the research literature and current movements in the fashion industry, this chap- ter explains how consumer receptivity to and decision making with regard to green fashion brands are influenced by the relationship between (1) consumer and environ- mental sustainability, (2) brand and environmental sustainability, and (3) consumer and brand. Consumer acceptance of green brands is dependent on how consumers process new green information within the context of the brand schema. Consumer motivation and ability to incorporate environmental sustainability within the brand schema will influence consumer attitudes toward the green brand. Also, the perceived fit between the brand and environmental sustainability as well as the authenticity of the business strategy will influence consumer response. In addition, consumers’ abil- ity to integrate the fashion brand’s image with environmental values and the strength of their relationship with the brand will determine how green brand attributes are ac- cepted. Industry implications for green branding are discussed and recommendations for future research are presented. 2.1 Introduction According to a survey of 4000 managers from 113 countries, 70 \% of companies have placed environmental sustainability permanently on their management agendas with two thirds of the managers noting this as a necessity to be competitive (Haanaes et al. 2012). Likewise, strategies related to environmental sustainability are active in the apparel industry. An increasing number of apparel brands are placing environmental H.-S. Kim (�) · M. L. Hall Department of Fashion and Apparel Studies, University of Delaware, Newark, DE 19716, USA e-mail: [email protected] © Springer International Publishing Switzerland 2015 31 T.-M. Choi, T. C. Edwin Cheng (eds.), Sustainable Fashion Supply Chain Management, Springer Series in Supply Chain Management, DOI 10.1007/978-3-319-12703-3_2 32 H.-S. Kim and M. L. Hall sustainability at the center of their brand strategy (e.g., Patagonia, Stella McCartney, and Loomstate) and are positioned to benefit from the predicted growth in this market. Furthermore, a growing number of major brands are being reported in the media for their initiatives in environmental sustainability (e.g., Ann Inc., Gucci, LVMH, Macys, Ivanka Trump). As such, we see a growing commitment to environmental sustainability, with companies not only viewing this as a necessity to their business practices but also a source of financial profits (Haanaes et al. 2012). Fashion brands can be considered “green” based on the intrinsic characteristics of the apparel product, the process by which the product is made, and/or their en- vironmental contributory business practices (Dickson et al. 2009). Long-established apparel brands, including H&M, Eileen Fisher, and Levi Strauss, have responded to consumer and industry-wide interest in environmental sustainability through inno- vative and strong branding strategies in product design, development, and sourcing. H&M’s Conscious garments offer products from organic cotton, recycled cotton, recycled polyester, and vegetable tanned organic leather. H&M’s goal is to have 100 \% of their cotton from sustainable sources (Reduce Waste n.d.). In addition, H&M’s closed-loop system allows consumers to hand in unwanted garments from any brands at any H&M stores. Closed-loop systems keep unwanted apparel products out of landfills, with some companies (e.g., lingerie brands Wacoal and Bonluxe in Hong Kong) offering cash incentives for consumer participation (Choi et al. 2014). Levi’s Water < LessTM products reduce the use of water in the finishing process by up to 96 \%. According to Levi’s website, the company has made over 13 million Water < LessTM products and saved over 172 million L of water (Levi’s® Wa- ter 2014). In Patagonia’s Common Threads Program, organic cotton and recycled polyester are used in many of their products, efforts are made to minimize pack- aging and transportation waste, and quality products are produced that last a long time. Urban Outfitters’ Urban Renewal-Vintage line features original and reworked vintage pieces and garments (May 2014; “Urban Renewal” n.d.). Finally, Eileen Fisher’s Eco Collection line includes classic and well-made garments that can be worn a long time and seamless knits that cut down on waste (“Meet Eileen Fisher” n.d.). Fashion brands are also considered green with their support of environmen- tal causes (Milne 2013). For example, apparel brands who are members of 1 \% for the Planet (http://www.onepercentfortheplanet.org), contribute 1 \% of their annual sales to environmental nonprofit organizations. In addition, companies routinely support environmental causes as part of their corporate culture where sales of the green brand apparel products indirectly support various environmental causes. Loom- state (http://www.loomstate.org) is one apparel company which actively participates in multiple local, regional, and international environmental programs. Consumers purchasing Loomstate T-shirts indirectly support company participation in beach cleanup projects, wildlife conservation efforts, and upcycling projects. As such, we are witnessing a growing number of big companies make management decisions to weave environmental sustainability within their products and business operations. In spite of the common practice of the “greening” of brands, the literature is mixed in assessing the actual potential of a brand’s green strategy and its receptiv- ity by consumers. In the research literature, many studies show a weak relationship 2 Green Brand Strategies in the Fashion Industry 33 Fig. 2.1 Model of relationships that influence green branding between environmental concern as predictors of corresponding environmental be- havior (e.g., Fransson and Gärling 1999; Hiller Connell and Kozar 2013). Also, a 2013 report published by Landor Associates (Romero and Braun 2013) states that “U.S. consumers appreciate corporate efforts to be green, but it is not a key driver in their purchasing decisions” (p. 1). The report notes that although being green was a considered brand attribute, it fell behind other basic brand attributes such as value, quality, and trustworthiness. Although some evidence shows a potential disconnect between consumers and green-branding strategies, there is still a strong market that expects companies to consider environmental sustainability within their business de- cisions. Cone Communications (2013) reports that 71 \% of Americans consider the environment when they shop and 45 \% of consumers actively seek out environmental information about products they buy. This chapter offers a discussion of the interrelationship among the consumer, brand, and environmental sustainability within the context of green-branding strate- gies. Using the schema theory, we explain how consumer receptivity to and decision making with regard to green fashion brands are based on three connections: (1) con- sumer and environmental sustainability, (2) brand and environmental sustainability, and (3) consumer and brand (see Fig. 2.1). Consumer acceptance of green brands is dependent on how consumers process new green information pertaining to the brand. Whether consumers develop positive attitudes toward the new green attribute or new green brand extension is dependent on how the green strategy brand fits into con- sumer motivation and ability to incorporate environmental sustainability within the brand schema, consumer’s perceptions about environmental sustainability in relation to the brand, and consumer’s strength of relationship with the brand. 34 H.-S. Kim and M. L. Hall 2.2 Conceptual Background The schema theory focuses on the importance of the mental structure or schema of preexisting ideas or framework that represents one’s understanding and knowledge related to particular aspects of an individual’s experience such as an event, person, or object (Rumelhart 1980). Based on one’s existing knowledge framework, schema also serves as a system for structuring, organizing, and interpreting new information (Crocker et al. 1984). Consumers’ schema of brands can include their knowledge about brand attributes and their evaluations of the brand. As such, a schema has an influential role in how new knowledge is processed and accepted. The schema theory has been used as the theoretical base in the brand management literature to explain consumer response to brand extensions or sub-brands where firms leverage the association of successful established brand’s category extensions or line extensions (Chatterjee 2009; Park et al. 1993; Loken and Roedder John 1993). The schema theory also explains attitude and belief change and how consumers evaluate brands (Park et al. 1993). Specifically, theories of stereotypic change (Crocker et al. 1984), which is grounded in the schema theory, supports the idea that attitudes and beliefs change in response to new stimuli that vary in congruence with an individual’s existing schema (Crocker et al. 1984; Park et al. 1993). While schemas can mature with increasing experience to fit varied experiences, individuals can be exposed to information incongruent with the schema in which case knowledge structures must be modified to accommodate the incongruent information. Several information- processing models (e.g., subtyping, book-keeping, conversion) have offered insight into how individuals may integrate existing knowledge with new knowledge result- ing in an impression that is meaningful to them (Chatterjee 2009; Gürhan-Canli and Maheswaran 1998; Weber and Crocker 1983). The subtyping model suggests that consumers process new information that does not fit into their current schema in a compartmentalized way. For example, if a brand extension does not share similarities to the parent brand, consumers will store information concerning the brand extension in a separate cognitive category which limits the negative impact of atypical infor- mation. The book-keeping model suggests a gradual modification of schema with a higher accumulation of incongruent information prompting more substantial change (Weber and Crocker 1983). Here, the book-keeping model views attitude change as an incremental process triggered by sustained informational influence. Finally, the conversion model suggests schema to change drastically in response to extremely atypical information and remain unchanged in response to minor differences. Sud- den changes in brand attributes or introduction of dramatically atypical information perceived as being unrelated or contradictory to the current impressions of the brand may prompt perceptual changes in brand image. Within the fashion industry, we see a growing number of green brands that leverage the brand equity of the current or parent brand. The schema theory can also be applied within the context of firms introducing green attributes within existing product brands where consumers must process new information using their own existing schemata for the brand. However, the stability of the schemata and brands and their influence on 2 Green Brand Strategies in the Fashion Industry 35 consumer attitude change may differ depending on the consumer, their green values, and perceptions of brands. Using the schema theory as the conceptual framework, this chapter offers insight into how consumer response to green-branding efforts is moderated by the three important connections among environmental sustainability, consumer, and the brand. Based on a literature review of theoretical and empirical studies, the propositions formulated within the chapter summarize past studies on green branding and offer ideas on how consumers process and respond to green brands, which will be moderated by their own environmental sustainability values, perceptions of fit between the brand and environmental sustainability, and the strength of their preexisting relationship with the brand. 2.3 Leveraging the Connection Between Environmental Sustainability and the Consumer Consumer attitude toward environmental sustainability, also known as environmen- tal or “green” attitude, is a function of individuals’ beliefs, feelings, and behaviors related to environmental issues (Schultz et al. 2004; Milfont and Duckitt 2004, 2010). Through the years, marketing research has examined consumer perceptions of green products and related marketing activities (e.g., Kim and Choi 2005; Kinnear et al. 1974; Roberts 1996; Straughan and Roberts 1999; Gam 2011). Results from these studies do not consistently show strong relationships between attitude and behavior. While some studies have found environmental attitudes to be directly linked to en- vironmentally sound consumption (e.g., Kim and Choi 2005; Lee 2008, 2009; Van de Velde et al. 2010), other studies note various factors, including cost, availability, and beliefs about the green product itself to serve as barriers to consumer purchase (Costa 2010; Chan and Wong 2012; Fransson and Gärling 1999; Grail Research 2011; Hiller Connell and Kozar 2013; TerraChoice 2010). Several apparel studies offer evidence that environmental attitude influence intentions to purchase green apparel (e.g., Gam 2011; Hustvedt and Dickson 2009; Yoo et al. 2013). Results from these studies can be supported by Strahilevitz and Myers’s (1998) findings that cause-related marketing campaigns for high-involvement products such as apparel have a higher likelihood of influencing purchase decisions. Although several empir- ical studies examining consumer perceptions of green messages via apparel product advertisements or labeling can be found in past literature (e.g., Kim and Damhorst 1999; Kim et al. 1997; Stall-Meadows and Davey 2013; Sonnenberg et al. 2014), studies that examine consumer perceptions of green fashion brands are limited. In one study, Yan et al. (2012) found environmental commitment to directly influence attitude toward the brand and intent to purchase the product and Myers et al. (2012) found consumer attitude toward a cause and prior brand attitude indirectly influenced post brand attitude. Several non-apparel related studies also point to the direct re- lationship between environmental attitude and green brand attitude (e.g., Hartmann and Apaolaza-Ibanez 2012; Yeoh and Paladino 2013). Although conclusions con- cerning green brand attitude and purchase behavior are less clear, previous studies 36 H.-S. Kim and M. L. Hall consistently offer evidence that consumers with higher levels of environmental con- cern will more likely have favorable attitude toward products or related company efforts that support environmental sustainability. Based on the schema theory, we propose that consumers with higher environ- mental attitude will have a predisposition to draw a natural connection between environmental sustainability and products and brands. Even if the brand has no previous track record with environmental sustainability, environmentally conscious consumers will be more willing to incorporate the green attribute within their current parent brand schema and thus form a positive response toward green brands. The following proposition reflects this idea. Proposition 1 Consumers’ environmental sustainability value positively moderates consumers’ motivation to fit new green brand attributes into the current fashion brand schema. In the case of apparel, sustainable business practices are often linked to the design and production processes for products within the same product line or category. Con- sumer preference for product-related messages compared to cause-related messages highlight the importance of green strategies that are linked directly to the product (Phau and Ong 2007). Yan et al. (2012) found respondents favored apparel brands with explicit information about environmentally friendly products. Several studies point to how consumers respond to green strategies in various marketing contexts (e.g., promotional messages, labeling, and advertisement). Hiller Connell (2010) found lack of concrete knowledge to be a constraint on green apparel consumption. Kang et al. (2013) found knowledge of organic cotton apparel influenced consumers’ attitudes toward the organic product. Cheah and Phau (2009) found ecoliteracy to influence attitude toward a wide range of environmentally friendly products. Borin and Cerf (2011) note that clear explanations of environmental impact on labels will improve consumer evaluations. A study by Cone Communications (2013) reports that 85 \% of respondents want companies to educate them on how to properly use and dispose of products. Chatterjee (2009) found that consumers were more likely to purchase green brand extension with higher environmental impact. This reason- ing indicates that the ability of the consumer to be able to understand the evidence behind the green strategy is critical to the success of a green strategy. Interestingly, a study by D’Souza and Taghian (2005) indicates that consumers who were more highly environmentally involved tended to be more critical to green advertisements. When considered within the context of how consumers connect green strategies with fashion products and brands, we assume that consumers with higher levels of knowledge of product development and production processes will have a better understanding of the environmental implications of the green strategy of the fash- ion brands. Consequently, consumers’ ability to better understand the environmental implications of fashion products will also influence formation of their environmen- tal attitude. Working under the assumption that the green strategy is meaningful, we propose that consumers with higher product and production knowledge will be 2 Green Brand Strategies in the Fashion Industry 37 predisposed to recognize and accept the natural connection between environmental sustainability and fashion brands. The following proposition reflects this idea. Proposition 2 Consumers’ knowledge of product development and production pro- cesses of fashion products is positively related to consumers’ ability to understand how environmental sustainability fits within a fashion brand schema. 2.4 Leveraging the Relationship Between Environmental Sustainability and the Brand As consumer perceptions of the relationship between environmental sustainability and the green brand are important, green brands must be able to position themselves as authentic players in the green brand market. The brand’s current image within the consumer market, whether consumers’ see a good fit between the brand and green strategy, and how the brand’s environmental strategy is communicated as part of their new market positioning are important factors. This section discusses how companies can strengthen their green brand strategy through communication strategies and aspects of brand image that support its connection with environmental sustainability. A study by Landor Associates (Romero and Braun 2013) show advertizing and brand’s own websites to be the most powerful ways to increase awareness and knowl- edge of a brand’s environmental practices. Green brand communication needs to be an integrated strategy “consisting of deliberate and proactive actions aimed at the definition of distinct consumer perceptions” (Hartmann et al. 2005). A successful green brand must distinguish itself in the marketplace from other green brands in such a way so as to be distinctive to consumers. Studies indicate that consumers frequently receive green-marketing communication where the validity of environ- mental claims are in question, confusing, or unverifiable (Bonini and Oppenheim 2008; Yan et al. 2012). Ng et al. (2014) found a brand’s credibility to be influential in green brand perceptions. Sound green branding increases consumer trust and creates brand loyalty (TerraChoice 2007). According to Chatterjee (2009), brand managers need to discern the perceived value of the green brand extension and conceive and maintain an appropriate marketing strategy for maximum brand equity. The credibility of a company’s environmental values is influenced by whether the new green branding-based knowledge fits into the existing consumer schema of the apparel brand. For example H&M’s recent marketing campaign highlights the brand’s sustainable apparel collection called “Conscious.” This H&M collection of “green” apparel products is built on several environmental consumer commit- ments, from textile sourcing to factory working conditions. Fernandez (2013) notes that albeit well-intentioned, the Conscious collection is inherently paradoxical when compared with H&M global distribution practices of fast fashion. Fast fashion of- fers consumers products at lower prices and quality where the idea is to encourage frequent purchases while offering consumer gratification with relatively disposable 38 H.-S. Kim and M. L. Hall products. These types of brand associative incongruities can become problematic with green-branding credibility, which may ultimately lead to misalliances between consumer schema of brand and green-branding efforts. We propose that a more ef- fective brand’s green strategy should be implemented where consumers’ perceive a company’s environmental values to be authentic. Proposition 3 Consumers respond more positively to green brands with authentic environmental values and credible environmental business strategies which influence perceptions of fit between the green brand strategy and brand schema. Effective communication of brand attributes is important to the successful position- ing of distinctive and competitive green brands (Hartmann et al. 2005). Aaker and Joachimsthaler (2000) note the importance of actively communicating a brand’s iden- tity and value proposition to customers. Although the importance of communicating green brand attributes is noted (Pickett et al. 1995), relying on a brand strategy that solely depends on its functional attributes is limiting. Most of past research liter- ature relates to the influence of cognitive and rational factors (e.g., environmental concern, environmental knowledge) that lead to positive consumer response to green strategies (e.g., Hyllegard et al. 2012; Kim et al. 1997; Kim et al. 2012; Lee et al. 2012). According to Keller (2013), effective branding goes beyond communicating per- formance and rational benefits but also emotional benefits. Indeed, as some studies show a weak connection between cognitive factors such environmental concern and environmental knowledge with purchase behavior (e.g., Fransson and Gärling 1999; Hiller Connell and Kozar 2013), several scholars (e.g., Coddington 1993; Hart- mann et al. 2005) have recommended a need to incorporate emotional appeals as a means to build an affective relationship with consumers. In a study of green posi- tional strategies, Hartmann et al. (2005) found that advertisements that combined both functional attributes and emotional benefits achieved a stronger brand attitude. Also, an experimental study by Matthes et al. (2014) found emotional and the func- tional and emotional mixed-type ads significantly affected brand attitude whereas functional ads only impact brand attitudes when consumers’ green involvement was high. For fashion products, there is a fine line between using cognitive elaboration versus emotional involvement in consumer decision making. Decisions related to fashion products are associated with individual preferences for and social accep- tance of design and style as well as evaluation of fit, quality, and value. Although almost all brands can be identified and described by customers’ emotional response, emotions can be used to describe consumption behavior of many fashion brands in particular. Green fashion brands may better be able to incorporate their green brand attributes and emotionally appeal to a customer base that is accustomed to identifying brands in an affective way. For example, fashion designer Stella Mc- Cartney’s website offers not only informative details of her green product line but also evidence of sustainability as part of the brand’s values and mission. The brand website offers a strong commitment to sustainability in its products, product de- velopment, and co-branding opportunities with Adidas. The outdoor apparel brand 2 Green Brand Strategies in the Fashion Industry 39 Nau (http://www.nau.com/) positions its brand as embodying style, performance, and sustainability and is branded as an environmental lifestyle company. Similar to Stella McCartney, Nau’s website also presents a strong commitment to environmen- tal sustainability with an informative website that details sustainability as being part of the company’s genetic make-up. Nau’s website offers the brand’s perspective on sustainable fashion as being intertwined with decisions related to design and de- velopment. Whereas Stella McCartney is represented as an eco-chic contemporary upscale fashion brand, Nau exudes a Zen-like presence of simplicity and calm. We propose that consumers are able to better modify their brand schema with persuasive communication that leverage both the functional and emotional appeal of green brands. As functional appeals may be better evaluated by consumers with higher levels of environmental awareness, emotional appeals are necessary to achieve a strong brand attitude among the general consumer group. Consumers are accus- tomed to developing fashion brand images based on communication strategies that incorporate various dramatic and fantastic imagery and emotions. As such, green brand communication strategies that emotionally appeal to consumers and build affective relationships should be impactful. Proposition 4 Consumers are able to modify their brand schema when supported by marketing communications strategies that incorporate both functional and emotional appeal of green fashion brands. 2.5 Leveraging the Relationship Between the Consumer and the Brand Branding is a means employed by brands to distinguish their products from competi- tors through the creation of awareness and reputation (Keller 2013). Keller (2013) states, “These differences may be rational and tangible-related to product perfor- mance of the brand-or more symbolic, emotional, and intangible-related to what the brand represents” (p. 3). In the case of brand extensions where established parent brand names are used to introduce new products, many studies have noted the influ- ential role of parent brands on consumer attitudes toward the new brand extension (e.g., Czellar 2003; Pina et al. 2013; Völckner and Sattler 2006). The perceived fit between the parent brand and extension as well as consumers’ impressions of the parent brand is influential in the success of the new brand (Pina et al. 2013; Völckner and Sattler 2006). The success of any green-branding strategy is important so as not to negatively impact the parent brand (Chatterjee 2009). Given the growing offering of green brands, many of which may hold negative perceptions with regard to au- thenticity, quality, and price competitiveness, parent brand equity will play a bigger role in how consumers evaluate green brands. Current customers are more likely to consider and favor brands with which they are familiar. The subtyping model suggests that consumers process new information that does not fit into their current schema in a compartmentalized way. For example, if a 40 H.-S. Kim and M. L. Hall new brand strategy does not share similarities with the brand, consumers will store information concerning the new brand attribute in a separate cognitive category which limits the negative impact of atypical information. In their study of green brand extensions, Kim and Ma (2014) found that consumers who strongly identify with the parent brand showed intentions to purchase green brand extensions even though they did not develop positive attitudes toward the green brand extension itself. As such, in situations where customers are loyal to the brand regardless of whether a new green brand strategy does not necessarily relate to the current brand or appeal to the customer base, we propose consumers will respond positively to the new green brand extensions. Proposition 5 Positive response to a new green brand extension may occur based on the strength of consumers’ schema of the parent brand and their ability to compartmentalize the new green information separately from the parent brand. 2.6 Summary and Industry Implications for Green Branding In order to maintain a strong …