The determinants of eco-fashion purchase intention and willingness to pay

Abstract

Purpose

This study aims to examine the effect of social influence, environmental concerns and altruism on consumer purchase intention of eco-fashion (PIEF). In addition, this study, exploring the essential behavioral outcomes influenced in marketing, seeks to deepen the existing insight in this area.

Design/methodology/approach

To obtain the required data, the authors surveyed a group of people with previous experience in the purchase of eco-friendly apparel. The research hypotheses were tested using the structural equation modeling technique.

Findings

According to the results, social influence had the most significant impact on PIEF. Also, environmental concerns and altruism had a significant effect on PIEF. The results further indicated that eco-fashion purchase intention, in turn, influenced consumer willingness to engage in eWOM and pay a price premium.

Practical implications

The results of the present study guide marketing practitioners for the segmentation of target consumers, as the information on consumers’ natural needs and desires in a socio-cultural context is of significant use to fashion managers to understand their customers deeply. This information also helps them discover better ways of designing their marketing campaigns.

Originality/value

This paper contributes to research by advancing an understanding of how consumers make eco-fashion consumption decisions in purchasing apparel and provides businesses with managerial insights into devising marketing strategies to promote eco-fashion consumption, which facilitates fashion companies’ development of a sustainable fashion supply chain.

Propósito

Este estudio examina el efecto de los factores influencia social, preocupación medioambiental y altruismo en la intención de compra de moda ecológica (PIEF) por parte de los consumidores. Además, este estudio, que explora los importantes resultados conductuales influenciados en el área del marketing, pretende profundizar en los conocimientos existentes en esta área.

Diseño

Se encuesto a un grupo de personas con experiencia previa en la compra de ropa ecológica. Las hipótesis de la investigación se contrastaron con SEM.

Conclusiones

La influencia social fue la que más influyó en el PIEF. Asimismo, la preocupación por el medio ambiente y el altruismo tuvieron un efecto significativo en el PIEF. Los resultados indicaron además que la intención de compra de moda ecológica, a su vez, influía en la disposición del consumidor a participar en el eWOM y a pagar un sobreprecio.

Implicaciones prácticas

Los resultados del presente estudio orientan a los profesionales del marketing en la segmentación de los consumidores objetivo, ya que la información sobre las necesidades y deseos naturales de los consumidores en un contexto sociocultural es de gran utilidad para que los gestores de la moda conozcan en profundidad a sus clientes. Esta información también les ayuda a descubrir mejores formas de diseñar sus campañas de marketing.

Originalidad

El artículo contribuye a la investigación al avanzar en la comprensión de cómo los consumidores toman decisiones de consumo de moda ecológica en la compra de prendas de vestir y proporciona a las empresas ideas de gestión para diseñar estrategias de marketing que promuevan el consumo de moda ecológica, lo que facilita a las empresas de moda el desarrollo de una cadena de suministro de moda sostenible.

目的–本研究考察了社会影响

环境关注和利他主义等因素对消费者购买环保时装意向（PIEF）的影响。此外, 这项研究探讨了在营销领域有影响的重要行为结果, 试图深化这一领域的现有见解。

设计/方法/途径–为了获得所需的数据

我们调查了一组有购买生态友好服装经验的人使用结构方程模型（SEM）方法对研究假设进行了检验。

结果–结果显示

社会影响对PIEF的影响最大。此外, 对环境的关注和利他主义对PIEF也有重大影响。结果进一步表明, 环保时装的购买意向反向影响了消费者参与eWOM和支付价格溢价的意愿。

局限性/意义–本研究使用的统计样本只包括伊朗的年轻消费人群

且结果只限于环保时装消费。

实践意义

本研究的结果为营销从业者提供了关于细分目标消费群体的指导。消费者在特定社会文化背景下的自然需求和欲望等信息对于时尚经理人深入了解他们的顾客来说有重要作用, 而这些信息也有助于他们探索更好地设计营销活动的方法。

原创性/价值–本文通过深入理解消费者在购买服装时如何做出环保时装的消费决策

为企业提供了设计促进环保时装消费的营销策略的管理建议。这促进了时尚公司发展可持续时尚供应链, 为该领域研究做出了贡献。

Citation

Farzin, M., Shababi, H., Shirchi Sasi, G., Sadeghi, M. and Makvandi, R. (2023), "The determinants of eco-fashion purchase intention and willingness to pay", Spanish Journal of Marketing - ESIC, Vol. 27 No. 3, pp. 348-366. https://doi.org/10.1108/SJME-07-2022-0158

1. Introduction

Considering the adverse environmental effects of clothing, there has been a growing concern for the sustainability of fashion consumption (Islam et al., 2021; Salem and Alanadoly, 2021). Businesses operating in the fashion industry use eco-fashion marketing to promote sustainable consumption (Chan and Wong, 2012). Meanwhile, consumers these days, due largely to the emergence of social media, become increasingly aware of the materials used in their clothing (Salem and Alanadoly, 2021; Kang and Kim, 2017) and the environmental concerns (Sobuj et al., 2021). Some consumers even inspect raw materials, brand suppliers, demand transparency and supply chain ethical compliance. Therefore, factors such as public concerns, common beliefs and social influences regarding ethical or environmental issues are considered most relevant to the prediction of consumer purchase intention of eco-fashion (PIEF) and willingness to pay (WTP) for such products.

In response to these concerns, brands have begun to move toward the manufacture of more eco-friendly products (Islam et al., 2021). Meanwhile, the trend toward ethical fashion has persuaded retailers to engage in the field and take action (Karadayi-Usta, 2022) to manage the planet’s resources using sustainability strategies (Evans and Peirson-Smith, 2018). These developments have also led to a growing interest in studying PIEF as a major research line. The literature indicates various factors, including concerns for product environmental impact, environmental aspects of apparel production, eco-friendly behavior and moral norms, as relevant to PIEF assessment (Salem and Alanadoly, 2021; Manchiraju and Sadachar, 2014; Gam, 2011). However, in the studies that followed, the findings did not support the assumed effects of these factors on PIEF (and WTP for eco-fashion) and showed that fashion consumers, despite their positive pro-environment attitude, were less willing to buy eco-fashion (Varshneya et al., 2017; Chan and Wong, 2012), thereby suggesting an attitude–behavior gap in fashion consumers to be addressed in future work by a more comprehensive analysis of the behavioral impact of consumer purchase intention (Farzin et al., 2022).

In addition, prior research, for a better grasp of the factors contributing to consumer PIEF and WTP, suggests additional research on the effect of other socio-cultural factors, such as altruism and social influence, on PIEF to enhance the model’s explanatory (prediction) power (Varshneya et al., 2017; Kim et al., 2012). Moreover, the studies on similar or related topics, such as attitude toward environmentally responsible clothing, purchase intention of eco-friendly products, altruism and social influence as determinants of purchase intention, showed contradicting results (Sobuj et al., 2021; Reimers et al., 2017) and suggested the model be reexamined in other research settings to make more solid inferences hereon (Sobuj et al., 2021; Reimers et al., 2017). Given this background, and response to the need for new evidence from other socio-cultural contexts, as suggested by prior studies to enhance the model’s overall explanatory power regarding PIEF, in the present research, next to environmental concerns, altruism and social influence are considered as the likely predictors of consumer PIEF in the Iranian eco-fashion context.

Meanwhile, recent studies investigating consumer environmental awareness and buying behavior suggest that consumers who are more environment conscious buy more of green brands (Rahman and Koszewska, 2020), are more willing to pay a premium for them (Shen et al., 2012) and publicize them using WOM (Salem and Alanadoly, 2021). Other studies further show that some people use WOM to disseminate information to create environmental protection awareness (Salem and Alanadoly, 2021). It is especially the electronic type of WOM (eWOM) that is largely used to influence consumer purchase intention and behavior (Filieri et al., 2021; Jaini et al., 2020).

Social media’s wide popularity among users in private and public spheres entailed important implications for advertising and sales promotion through eWOM. This popularity inspired many researchers to examine, among others, the likely effects of eWOM on sustainable fashion and eco-fashion behavior (Chung et al., 2017). Researchers showed that eWOM influenced and could, in turn, be influenced by consumer purchase intention (Farzin et al., 2021), which is considered crucial for predicting consumer buying decisions such as WTP a price premium (Farzin et al., 2022). This study, drawing on prior research theoretical and empirical findings, investigates the effects of several socio-cultural factors on consumer PIEF and WTP (a price premium) for eco-fashion, given the mediating role of eWOM in the relationship between PIEF and WTP a price premium. For this purpose, the assumed relationships between the variables are modeled and tested based on several relevant theories, i.e. the theory of planned behavior (TPB), the value-belief-norm (VBN) theory and the normative conduct theory (NCT).

Considering the above discussion, the research objectives can be articulated as follows:

• Investigating consumer views regarding PIEF, with a particular emphasis on PIEF determinants and the practical implications hereof.

• This study, while searching for new evidence in the context of an emerging market (i.e. Iran’s eco-fashion market), as suggested by prior studies for further support of their findings, seeks to clarify some of the existing inconsistencies in the earlier findings regarding PIEF determinants or predictors.

• Explaining, in practical and theoretical terms, how eWOM mediates the relationship between PIEF and WTP to clarify the formerly unexplored paths through which PIEF may shape consumer WTP.

• Using the TPB, VBN theory and the NCT, more light is shed on the process in which eWOM and WTP a price premium are formed in connection with PIEF.

• Finally, based on the research findings, we draw the practical implications for marketing practitioners in this area to help them develop marketing strategies promoting PIEF by optimum use of the planet’s resources in the interest of future generations.

2. Literature review and hypotheses development

2.1 Attitude–behavior gap in purchase intention of eco-fashion

The studies of the past decade documented an attitude–behavior gap in the purchase of organic products (ElHaffar et al., 2020) and eco-fashion and eco-apparel (Perry and Chung, 2016). In addition, the results of these studies also indicated that the choice of fashion consumers for sustainable consumption style was very complex (Varshneya et al., 2017). Despite their positive attitude toward environmental protection, fashion consumers may be less willing to buy eco-fashion and green products (Chaturvedi et al., 2022). This gap is mainly due to the consumers’ difficulty choosing organic products or eco-fashion. In contrast, consumers wish to support community welfare by protecting the environment, but the product’s high price makes them unwilling to pay for it (Perry and Chung, 2016).

Fashion consumers differ from consumers in other sectors in that their choice for the use of a product is ethically motivated. Several researchers have investigated the main reasons for this gap in organic food and personal care, from among eco-environmental products (Tung et al., 2012). For example, food consumers show more commitment to ethical consumption because food directly affects their health and their choice indicates their benefit (Mohr et al., 2022). In contrast, fashion consumers show less commitment to sustainable consumption, as unethical choice does not (directly) affect their health and well-being (Varshneya et al., 2017). At first, consumers complained about eco-fashion due to the limited color options, ordinary designs, fewer variety and high prices. In addition, consumers decide to buy based on such factors as price, style and suitability that prevail over environmental attitudes (Chaturvedi et al., 2022). Moreover, studies showed that product availability and viewing apparel purchases as a means of self-expression, group conformity and aesthetic satisfaction are responsible for this disparity (Varshneya et al., 2017; Chan and Wong, 2012). Thus, the study of consumer motivations for eco-fashion consumption has grown to a major research branch in the general effort for a more comprehensive knowledge of the existing gap between consumer attitude and behavior in eco-fashion.

2.2 Theoretical framework

As explained in the previous subsection, one of the main concerns of the present study is to identify PIEF drivers so that the model is given a high prediction and explanatory power. To this effect, studies conducted in such branches as green purchase, organic clothing and eco-fashion were reviewed, and the theoretical framework, conceptual model (Figure 1) and used variables were examined. These studies derived their frameworks from such theories as the norm activation theory (Schwartz, 1977), the theory of reasoned action (Ajzen and Fishbien, 1980), the NCT (Cialdini et al., 1990), the TPB (Ajzen, 1991), the value–belief–norm theory (Stern et al., 1999), as well as the attitude–behavior–context theory (Stern, 2000) which in some cases overlapped.

The majority of the studies had used the TPB as the main framework for the prediction of purchase intention and actual buying behavior in eco-fashion settings in combination with other theories, such as the NCT and the VBN theory. The TPB has also been applied for the prediction of the factors that influence a particular intention (Zhang et al., 2020), analysis of the purchase intention of different products (Liobikienė et al., 2016), as well as the purchase intention of green products (Wang et al., 2018). It was suggested that the new variables might, for a deeper understanding, be added or replaced in the model, while methods, too, for a similar purpose be changed (Sereenonchai and Arunrat, 2022; Sobuj et al., 2021). Further, it was suggested that including different variables could enhance the model’s prediction power (Farzin et al., 2022; Sobuj et al., 2021). Among the variables, environmental concerns was one of the most frequently used variables in studies, which played a significant role in predicting eco-friendly product purchase intention. Environmental concerns refers to a general attitude or value orientation toward environment protection; the attitude to the environment is based on the relative importance people attach to themselves, others and the biosphere (Kim et al., 2012). In addition, concerning the VBN and NCT theories, we propose social influence and altruism as two other important PIEF drivers, next to environmental concerns. These variables have been used individually in numerous research settings, including eco-friendly apparel purchase behavior, organic clothing, sustainable apparel purchasing behaviors, purchase of organic cotton, green apparel buying behavior and eco-friendly consumer behavior. While in many studies, these variables influence purchase intention significantly, their impact was not supported in others. This inconsistency led the authors to call for additional research in different contexts.

Further, this study explores the practical implications of purchase intention in eco-fashion. For this purpose, the two critical variables of eWOM and WTP a price premium, are considered as the PIEF outcomes, conform to the studies conducted in leather industry, food industry, hospital and social media (Farzin et al., 2022; Fattahi et al., 2022). These studies (Farzin et al., 2021; Filieri et al., 2021; Jaini et al., 2020; Chung et al., 2017), whose findings required further support by extensive future research, called for the reassessment of eWOM and WTP a price premium as the outcomes in different areas, where eWOM is supposed to play an important mediating role in inducing WTP (a price premium) for the product. Hence, consistent with prior research, in the present study, the variables environmental concerns, social influence and altruism are proposed as the PIEF antecedents and eWOM and WTP a price premium as its outcomes.

2.3 Environmental concerns and eco-fashion intention

Eco-fashion is defined as a type of apparel industry designed and produced to maximize benefits for people and the community and minimize adverse environmental effects (Salem and Alanadoly, 2021). Eco-fashion is produced in view of its ecological effects. It could be manufactured with biodegradable or recycled materials (such as cotton and organically grown corn fibers) and responsible manufacturing processes (Sobuj et al., 2021). Eco-fashion implies sustainable consumption at the end of a fashion supply chain, which compels upstream fashion supply chain processes, from sourcing to production and distribution, to be environmentally responsible so that consumer needs and expectations are satisfied.

Prior research identifies the factors that lead to a higher consumer willingness to adopt eco-friendly purchasing behavior. In eco-friendly purchasing behaviors, consumers choose products that are recyclable or made of recycled materials. Studies have shown that consumers who are concerned about the environment and show eco-friendly behavior are more likely to buy green products (Kang and Kim, 2017). In addition, Sadeghi et al. (2022) found that the consumers who make an effort for self-improvement and enjoy the challenges they face in this effort are often aware of environmental (ecological) issues and follow a lifestyle sensitive to the environment. Further, consumers who tend to have eco-friendly behavior are more willing to engage in eco-fashion consumption behavior (Evans and Peirson-Smith, 2018). Therefore, knowledge of environmental concerns is a prerequisite to understanding consumers’ willingness to purchase eco-friendly products (Sobuj et al., 2021). As there are consumers who are interested in fashion, there may be consumers who prefer eco-fashion. As the acceptance of fashion products is largely determined by changes in fashion, and as PIEF is associated with eco-friendly behavior, mixed research on eco-friendly and fashion-oriented behaviors would help identify the processes of eco-fashion acceptance by consumers. In line with the above background, we posit the following hypothesis:

H1.

Environmental concerns have a significant effect on purchase intention of eco-fashion.

2.4 Social influence and eco-fashion intention

Social influence occurs when people change their attitudes, emotions or behaviors in response to their community or social bonds (Varshneya et al., 2017). It is observed that people, at times, modify their behaviors to conform to their peers (Farzin et al., 2020). Here, the basic concept that underlies social influence is homophily which can be viewed as the social mechanisms through which consumers try to affiliate with their peers by displaying similar or identical behavior (Han and Stoel, 2016). This could be crucial in studying consumer behavior, as individuals seek social proof before trying a new brand (Sobuj et al., 2021).

There are different perspectives relevant to social influence in the literature. Recent studies in developed countries with an individualistic culture postulated that social influence had a significant role in green purchase behavior (Sadeghi et al., 2022). Similar results were found in studies conducted in collectivist cultures (Makvandi and Farzin, 2022), as there is more need for conformity in these cultures (Fattahi et al., 2022), such as Iran. However, in previous studies, some findings do not support the impact of social norms and social influence on eco-fashion purchase intention (Sobuj et al., 2021; Varshneya et al., 2017; Han and Stoel, 2016). To shed more light on this issue, we propose the following:

H2.

Social influence has a significant effect on purchase intention of eco-fashion.

2.5 Altruism and eco-fashion intention

Altruism can be viewed as a selfless form of motivation (Farzin et al., 2020), leading to meaningful and voluntary actions intended to benefit others (Sadeghi et al., 2022). Such activities occur without the expectation of reward from external sources (Fattahi et al., 2022). The relevance of altruism to this study lies in the fact that the environment belongs to all, and individual actions with an impact on it also affect others. Purchasing eco-fashion is therefore altruistic in that it produces a future-oriented outcome that benefits society as a whole (Reimers et al., 2017). Hence, we propose the following:

H3.

Altruism has a significant effect on purchase intention of eco-fashion.

2.6 eWOM and willingness to pay a price premium

eWOM is a crucial factor that influences consumer behavior and is influenced by it (Makvandi and Farzin, 2022). Studies show that the use of eWOM by consumers and how they use this form of verbal communication for information dissemination is a core concept in research on consumer behavior (Salem and Alanadoly, 2021). The main idea of eWOM is to supply positive information on a product/brand by a consumer to other potential consumers through informal communication channels. Studies show that willingness to consume may also significantly affect consumer eWOM (Fattahi et al., 2022).

According to Sadeghi et al. (2022), having initiation and interest in being eco-friendly is the best way to encourage the spread of positive eWOM in a sustainable business. Shin et al. (2017) further informed that consumers, who are conscious of the environmental impact of companies and have higher levels of satisfaction with the eco-friendly activities of these companies, will have a stronger motivation to engage in positive eWOM for those companies. In addition, Salem and Alanadoly (2021) showed that people with pro-environment solid tendencies and behaviors with a high interest in eco-friendly and sustainable fashion tend to employ eWOM to disseminate favorable information on sustainable eco-fashion. Hence, it is assumed:

H4.

Purchase intention of eco-fashion has a significant effect on eWOM.

Studies find that consumer intentions can affect actual consumer behavior in such instances as eWOM and WTP a price premium (Farzin et al., 2021; Makvandi and Farzin, 2022). Meanwhile, researchers show that eWOM itself can act as a stimulator of consumer WTP a price premium (Farzin et al., 2022). They further suggest that eWOM, in addition to its direct role in stimulating consumer purchasing behavior, may mediate the relationship between consumer purchase intention and actual purchasing and consumption behavior (Farzin et al., 2021).

As a counter-argument, many researchers suggest that, although many consumers express concern for the environment, the price remains a crucial factor and often, only when the prices are equal do they choose to use eco-fashion (Rahman and Koszewska, 2020). However, considering that people are more likely to accept the words of their peers as more credible (Farzin et al., 2020) and considering the compliance with social norms by members (Fattahi et al., 2022), social factors may affect consumer price sensitivity. Studies reveal that consumers with eco-fashion concerns, intending to support socially and environmentally responsible businesses, are willing to pay a higher price by purchasing their products (Sadeghi et al., 2022). Therefore, in the present research, in addition to the eWOM direct effect, we examine its mediating role in inducing WTP a price premium by influencing PIEF. Hence, we posit the following hypotheses:

H5.

Purchase intention of eco-fashion has a significant effect on WTP a price premium.

H6.

eWOM has a significant effect on WTP a price premium.

H7.

eWOM mediates the relationship between purchase intention of eco-fashion and WTP a price premium.

3. Methodology

3.1 Research design and measurement tool

A quantitative method was applied to assessing PIEF determinants and the relationship of PIEF with eWOM and WTP a price premium. For this purpose, a structured questionnaire was composed to obtain the answers of the sample respondents, the completion of which required 10–20 min. The first section of the questionnaire included queries on the sample demographics, and the second section was dedicated to the items to test the research hypotheses. Responses for all the constructs used in this study were measured on a seven-point scale (1 = strongly disagree, 7 = strongly agree). These constructs were measured using the scales with minor adaptations from the existing scales. These were environmental concerns (Reimers et al., 2017), social influence (Varshneya et al., 2017), altruism (Reimers et al., 2017), PIEF (Gam, 2011), eWOM (Farzin et al., 2021) and WTP a price premium (Farzin et al., 2022).

Having composed the questionnaire, 30 respondents participated in a pilot test to examine the validity or relevance of the input data. In sum, 30 data sets were collected from the filled questionnaires and analyzed, which yielded satisfactory results. There was no significant ambiguity in the questionnaire. The opinions on the questionnaire structure, phrasing and length were positive. The pilot testing data were analyzed using the reliability test (Cronbach’s alpha). All the results of the estimated internal reliability were greater than 0.7. Thus, the process and pilot testing results confirmed the research instrument’s high internal reliability. The distributed questionnaire was originally drawn in the respondents’ mother tongue (Farsi), which subsequently was translated into English for reporting in the article. It should be noted that the double-blind back-translation process was used to translate the original items into Farsi.

3.2 Statistical population and sample, data gathering and analysis method

The target population in this study included Iranian young adult consumers. We chose this group of consumers because they are most conscious of the new trends in fashion and clothing (Varshneya et al., 2017). The sample was selected from the consumers of Landareh, one of the first and most famous brands, which is very a la mode in Iranian fashion with innovative design and unique style. This brand offers its products through brick-and-mortar stores, websites and social media to consumers. In addition, Landareh offers a variety of products, including men’s and women’s wear, sports, official and even ceremonial wear to its audience in a way that stimulates their purchase intention not only by design and offering customization services but also recently by adopting an eco-friendly approach (e.g. using recyclable fabrics and eco-print).

Considering the time and financial constraints, convenience sampling was used consistent with the sampling procedure used in similar studies (Farzin et al., 2021; Varshneya et al., 2017). The research sample included consumers who had a previous experience in the purchase and consumption of eco-friendly products. Before administering the final questionnaire, the respondents’ awareness level was checked in terms of PIEF with a set of filtering questions such as have you ever purchased eco-fashion products? To what extent you are likely to send advertisements of an eco-fashion product to your friends and acquaintances on social networks? Then, the qualified respondents were screened for the final survey. The consumers were personally approached and invited to fill out the questionnaires.

The fieldwork was carried out in February–March 2022. Of 550 convenient respondents initially approached for the survey, 433, who successfully passed the filtering, were taken into the final survey. The self-administered questionnaires were distributed among 433 respondents, of which 389 were considered for data analysis after excluding the outliers and incomplete questionnaires. The return rate of 0.89 indicates that the understudy sample was large enough to represent the target population. Furthermore, this study used an a priori sample size calculator for structural equation modeling (SEM; Soper, 2017). Given the number of observed (N = 20) and latent (N = 6) variables, the anticipated effect size (d = 0.30), the desired probability (p = 0.05) and the statistical power (0.80), a minimum sample size of 161 was required. Thus, our sample (n = 389) met the recommended minimum sample size for sampling adequacy. Table 1 presents the demographics of the research participants.

The descriptive part of the data analysis was performed with the aid of SPSS software, and for the inferential statistics, SEM was used in Smart PLS3 software environment. The partial least square method was used for the statistical analysis in this research, as it is flexible to the assumptions regarding data distribution and is suitable for the execution of formative prediction models and constructs with fewer measures (Hair et al., 2017). Besides, this method allows both reflective and formative modeling of latent constructs and is an established method for estimating cause-related models (Hair et al., 2017). In addition, the PLS approach is often more suitable when the research has an interactive character. This is the case of an incremental study, initially based on a formerly existing model, but new measures and structural paths are introduced into it (Roldán and Sánchez-Franco, 2012).

4. Research findings

We analyzed and interpreted the PLS model in two steps. First, we assess the measurement model, and in the second step, we test the proposed hypotheses of the structural model.

4.1 Measurement model

The indicator validity shows which portion of the variance in the indicator is explained by the latent variable, where the factor loadings above 0.7 are acceptable (Hair et al., 2017). All the factor loadings reported in Table 2 are higher than 0.7. The reliability of all the constructs in the model, measured by Cronbach’s alpha, lies within the range of 0.737 and 0.912, which is higher than the standard threshold of 0.7 (Hair et al., 2017). Hence, internal consistency of the model constructs is confirmed. Composite reliability is used to assess whether the model constructs are adequately reliable. The obtained value for composite reliability of the model constructs lies within the range of 0.708 and 0.938, which is higher than the minimum acceptable value of 0.7. Hence, the model constructs are adequately reliable in terms of composite reliability.

Next, the research convergent and discriminant validity are examined. As seen in Table 2, the average variance extracted (AVE) for all the research constructs is higher than the suggested threshold of 0.5, whereby the measurement model convergent validity is confirmed. As seen in Table 3, the square roots of AVE are absolutely greater than the diagonal correlations, confirming the model discriminant validity at the level of the research constructs (Fornell and Larcker, 1981). Furthermore, Henseler et al. (2015) have proposed the HTMT ratio as a more robust tool for ensuring discriminant validity. As Table 3 reveals, both procedures established the discriminant validity of our constructs. In addition, in this study, the calculated variance inflation factor (VIF) for all the indicators lies within the range of 1 and 1.302, which is lower than the critical level (VIF < 5) (Henseler et al., 2009), thereby confirming validity of the composite measurement model (Hair et al., 2017).

4.2 Structural model

The structural model was used to test the research hypotheses. Figure 2 represents the model’s overall explanatory power and the regression coefficients of the standard path, which indicate the direct effects of the predictor variables on the predicted latent constructs of the model. R-square (R²) value shows the degree to which our model explains variance in the dependent variables. In our model, R² explains 89% of PIEF variance, 75% of eWOM variance and 70% of WTP a price premium variance (Figure 2). In addition, the overall model fit was tested using the goodness-of-fit (GOF) index. The calculated GOF (0.61) attests to the overall model fit.

The first six proposed hypotheses were tested using path modeling in PLS, presented in Table 4. The results suggested that AL, EC and SI positively and significantly affect PIEF (t-values> 3.29, p < 0.001), confirming the first to third hypotheses. It was also found that PIEF had a positive and significant effect on eWOM and WTP a price premium (t-values> 3.29, p < 0.001). Moreover, eWOM had a positive and significant effect on WTP a price premium (t-values > 3.29, p < 0.001). Hence, H4–H6 are accepted as well.

Next, the mutual effects of the two variables (PIEF and eWOM) on WTP a price premium, the standard direct effects, indirect effects and total effects of all constructs were examined (Table 5). The results showed that PIEF had an indirect effect on WTP a price premium (0.342), and also the total effect of PIEF on WTP a price premium was 0.810. Thus, eWOM mediates the relationship between PIEF and WTP a price premium, whereby the seventh hypothesis was confirmed.

5. Discussion and conclusion

Ample research has been conducted on eco-friendly consumer behaviors such as healthy food or organic health products, while research on eco-fashion has gained momentum in the past decade with unprecedented interest. Researchers investigating consumer behavioral intentions in areas such as eco-friendly apparel, organic clothing, sustainable apparel, organic cotton and green apparel suggested new areas such as eco-fashion for the study of these behavioral intentions (i.e. PIEF) and consumer behavioral outcomes in connection with PIEF in the context of emerging markets and developing countries.

This study, investigating PIEF determinants in the apparel industry, in general, and in the fashion branch, in particular, in the context of an emerging market and developing country (i.e. Iran’s eco-fashion), seeks to extend our understanding of eco-fashion purchase intention and reduce the existing knowledge gap in the literature. This study, in addition to examining the factors of influence over PIEF, the effects of this intention on eWOM and WTP a price premium were investigated, seeks to fill the attitudinal–behavioral gap in consumer behavior.

5.1 Theoretical implications

In broad lines, the present research, applying the TPB in combination with the VBN and NC theories to the consumer eco-fashion purchasing intention and behavior, seeks to elucidate the process in which PIEF is shaped through interaction with eWOM leading to an eventual WTP a price premium. In other words, by testing the current conceptual framework in a new context and providing new evidence, the present study contributes to the further enrichment of the marketing and pricing literature. In addition, unlike prior research that mostly ignored the outcomes of eco-fashion purchase intention or was primarily focused on behavioral outcomes such as repurchase intention or mindful consumption behavior, we went one step further and introduced eWOM and WTP a price premium as other significant consumer behavioral outcomes. Moreover, to the best of our knowledge, it is the first time that the three constructs of environmental concerns, social influence and altruism are together considered as PIEF determinants. This, in addition to extending the application of the above mentioned theories to new contexts or settings, provides managers with useful and important insights in this area.

Further, the present study, while supporting prior research findings on the impact of environmental concerns on eco-fashion intention (Kang and Kim, 2017; Hiller Connell and Kozar, 2012), explains away part of the contradicting results on the effects of social influence and altruism on consumer eco-fashion purchase intention and behavior (Sobuj et al., 2021; Varshneya et al., 2017; Han and Stoel, 2016). The lack of support for the effect of altruism in these studies could be ascribed to the different methods by which the construct was made operational. However, according to the results of this study, when altruism is made operational in terms of intentional and voluntary actions which benefit others, it is likely to influence eco-fashion intention. And, given its path coefficient in this study (β = 0.228), altruism can be considered as one of the PIEF drivers, especially when compared with the well-established construct of environmental concerns, which scores lower with a β = 0.200.

Furthermore, the results of this study, interestingly, and contrary to the earlier findings in the area of apparel purchasing behavior (Hiller Connel and Kozar, 2012), show that social influence (with a β = 0.601) is not only one of the drivers of consumer intention in the fashion market, but also the strongest of the three determinants. One possible explanation may lie in the fact that previous studies were focused on a particular product category (e.g. green apparel or sustainable apparel) or a specific consumer segment (e.g. Indian teens) (Khare and Sadachar, 2017). As the present study takes place in the fashion environment, this discrepancy may also arise because fashion consumers usually are more preoccupied with group conformity and social acceptance than other branches of the apparel industry. Moreover, the effect of social influence on eco-fashion intention may be contingent on the cultural context of the understudied population. Considering that in previous studies, Iranian consumers showed high sensitivity to normative influences (Fattahi et al., 2022), we may conclude that social influence has a significant role in shaping consumer intentions, including eco-fashion purchase intention.

On the other hand, it was tried not to suffice with the study of consumer intention alone and also take its important behavioral consequences in terms of eWOM and WTP a price premium into the research conceptual framework. This research also examined the mediating role of eWOM in the relationship between PIEF and WTP a price premium to explain the formerly unexplored paths as to how PIEF may lead to WTP a price premium. The present study, consistent with earlier studies, showed that eco-fashion purchase intention, in addition to the direct effect it may have on consumer behavior in the form of WTP a price premium (Farzin et al., 2021), may exert a stronger influence yet through such reference mechanisms as eWOM. Thus, consumers with a higher eco-fashion intention, next to the dissemination of positive messages among peers, have a higher WTP a price premium. Finally, it should be noted that, like previous studies that showed when consumers are exposed to the generated content by other users, price effect and price sensitivity decrease (Fattahi et al., 2022). Our findings also indicated that consumers attach a higher value to external information (eWOM) than to internal information (eco-fashion intention) so that opinions of their peers play a more significant role in shaping their WTP a price premium.

5.2 Practical implications

This study highlighted the factors associated with PIEF together with the behavioral consequences of the latter. The results of the present study guide marketing practitioners for the segmentation of target consumers, as the information on consumers’ natural needs and desires in a socio-cultural context is of significant use to fashion managers to form an in-depth understanding of their customers. This information also helps them discover better ways to design and develop their marketing plans.

On the managerial front, the results of this study help form a comprehensive perspective on environmental marketing strategies for eco-fashion businesses. As the knowledge of the PIEF determinants is the first step in this undertaking, many businesses have striven to identify environmentally active consumer groups (Kim et al., 2012). The findings of this research help marketing practitioners design their advertisements according to the specifications of this group of consumers, which facilitates the communication of marketing messages to the target audience. For example, marketing practitioners may use social marketing techniques in their advertising to stimulate consumer environmental concerns. Eco-fashion consumption values help identify eco-conscious consumers, and this can extend to consumer segmentation. Designing campaigns highlighting eco-fashion consumption values and linking them to environmental protection may help marketing practitioners influence consumers and widen their consumer base. However, this study suggests that social influence has a more significant impact on eco-friendly consumer behavior than environmental concerns. Therefore, marketers may need to segment consumers not only by environmental concerns but also by their susceptibility to social influence, which could be studied based on social comparison information (Bearden and Rose, 1990).

The results further confirmed the effect of social influence on eco-fashion purchase intention. It suggests that marketing practitioners would do a good job if they included such factors as altruism and social influence in their advertising campaigns and leveraged peer pressure to encourage and stimulate eco-fashion purchases. They may use celebrity endorsements, market mavens, or opinion leaders, among others, in their campaigns. In addition, as many consumers learn fashion information in fashion magazines from the mouth of celebrities, the use of fashion magazines for instruction by which opinion leaders promote and propagate environmental concerns and altruism in fashion can be an effective marketing strategy. This method can also be used to exercise some degree of social influence on consumers, since by being exposed to the opinions of celebrities they feel a social pressure on them which may lead them toward homophily (i.e. appear like others). In addition, using tag and packaging which are not only environment-friendly but also supply information on environmental concerns to consumers can be among the methods to enhance consumer eco-fashion awareness or consumption intention.

In general, fashion consumers have three varying needs: physical, emotional and psychological (Niinimaki, 2010). Considering that emotional needs (i.e. social influence) and psychological needs (i.e. environmental concerns and altruism) have the upper hand in consumer PIEF (Chan and Wong, 2012), the businesses and brands operating in eco-fashion, by offering such services as providing information on eco-fashion, promoting benefits of eco-fashion consumption, special welcoming to eco-fashion consumers and paying special attention to eco-fashion consumer needs, can not only show their sincerity and the degree of their interest but also create an added value to eco-fashion consumers. By offering customization services such as the delivery of goods at home with no charge, or free and green gift wrapping services, companies can create added value for consumers and stimulate their PIEF.

In addition, fashion consumers have a symbolic feeling of advantage, which is associated with a socially responsible lifestyle that can indicate their personal ethical identity by purchasing from a brand that behaves ethically (Niinimaki, 2010). Hence, eco-fashion businesses are suggested to adopt ethical practices, such as providing a healthy and safe working environment and training on environmental management practices to employees, offering products that can be recycled and collecting consumers’ returned packaging waste or products for recycling, which can fulfill fashion consumer psychological needs of ethical identity building.

On the other hand, studies (Gam, 2011) show that consumers are less willing to buy eco-fashion because of its high price. Our results showed that eWOM both directly and indirectly has a significant role in consumer WTP a price premium for eco-fashion. In addition, studies show that eWOM can build trust in the community, which, in turn, stimulates WTP a price premium (Farzin et al., 2021). Therefore, marketers are encouraged to build trust in the community by creating mechanisms (e.g. sharing celebrities’ or influencers’ posts and endorsements of their brand). Marketers are also advised to get the database of those consumers that can be identified as “influencers.” These “social influencers” or “market mavens” in the community can be encouraged to spread positive product and brand information later (Farzin et al., 2021) which would result in paying premium prices by other consumers.

5.3 Conclusion

This study highlighted the factors associated with PIEF together with the behavioral consequences of the latter in the form of eWOM and WTP a price premium. The results indicated that environmental concerns, social influence and altruism together significantly contributed to shaping consumer PIEF so as they together could explain nearly 90% of PIEF variance. It should be noted that of the three constructs, social influence had the greatest impact. Also, the results supported the significant role of PIEF and eWOM in shaping consumer WTP a price premium for eco-fashion, as well as the significance of eWOM mediating role in the relationship between PIEF and WTP a price premium.

The results of the present study give marketing practitioners insight into the demand side of the eco-fashion market, which would help them map the market for a more objective segmentation of the target consumers, as the information collected on consumer natural needs and desires in a socio-cultural context provide fashion managers with the essential materials on which marketing intelligence and in-depth knowledge of the customers are built. This information also helps them discover better ways of designing their marketing plans.

6. Limitations and future research

This study has several limitations. First, the statistical sample used in this study only includes young adults of the Iranian consumer population, and the results are confined to eco-fashion apparel consumption. Therefore, caution must be taken in extending (applying) the research findings to other segments of the apparel industry. To extend the coverage of the results, this study can be conducted for different age and cultural groups and different classes of goods. The second limitation is methodological and has to do with the research approach. To further probe into PIEF, this phenomenon can also be examined using other research approaches, such as qualitative and semi-experimental ways of addressing the issues at hand. In addition, considering the ever-growing maturity of consumers in the digital era, where information is accessible anytime and anywhere, future research must assess consumer attitudes over time in a longitudinal study before and after a marketing campaign. Moreover, to grasp the full weight of the PIEF antecedents or drivers, more studies adopting the same methodology need to be conducted in other research contexts, including parallel research settings (through a cross-sectional study). Hence, in future work, the PIEF drivers can be examined in physical and virtual world contexts and compared with each other, enabling managers to formulate retailing and etailing specific strategies. Finally, future studies can explore other antecedents, such as resistance to change and impulse buying, in connection with different outcomes, such as brand image and personality.

Figures

Figure 1.

Conceptual model

Figure 2.

Structural model

Table 1.

Demographics of the participants

Variable	Cases (%)
Gender
Male	133 (34.19%)
Female	256 (65.81%)
Education
Graduate	288 (74.03%)
Postgraduate	84 (21.59%)
PhD	17 (4.38%)
Age
20–25	82 (21.00%)
26–30	176 (45.24%)
31–35	96 (24.67%)
36–40	32 (8.22%)
Above 40	3 (0.87%)

Table 2.

Factor loadings, reliability and convergent validity

Constructs and items	Factor loadings
Altruism (AL) Adapted from Reimers et al. (2017) α = 0.781; CR = 0.872; AVE = 0.695
I like to help other consumers of eco-fashion brands	0.879
Helping other consumers of eco-fashion brands feels good to me	0.838
I feel pleasure from helping other consumers of eco-fashion brands	0.783
Environmental concerns (EC) Adapted from Reimers et al. (2017) α = 0.772; CR = 0.837; AVE = 0.566
The dyes and chemicals used in the production of eco-fashion are less harmful to the environment	0.763
I am concerned about the impact of eco-fashion on the environment	0.808
It is important to have a fair price for environmentally eco-fashion brands	0.835
More retailers need to sell environmentally eco-fashion brands	0.788
Electronic Word-of-Mouth (eWOM) Adapted from Farzin et al. (2021) α = 0.901; CR = 0.938; AVE = 0.835
I will recommend eco-fashion brands to my social media friends	0.897
I will post positive opinions about eco-fashion brands on social media	0.900
I will share my experiences about eco-fashion brands with others	0.944
I “talk up” eco-fashion brands online pages to my friends	0.921
Purchase intention of eco-fashion (PIEF) Adapted from Gam (2011) α = 0.912; CR = 0.936; AVE = 0.792
I will buy eco-fashion brands that are durable in the future	0.861
I will buy eco-fashion brands with recycled content in the future	0.883
I will buy eco-fashion brands that are safe to the environment	0.885
Whenever possible, I buy eco-fashion brands I consider environmentally safe	0.930
Social influence (SI) Adapted from Varshneya et al. (2017) α = 0.794; CR = 0.708; AVE = 0.551
When buying cloths, I generally purchase those eco-fashion brands that I think others will approve of	0.779
If I want to be like someone, I often try to buy the same eco-fashion brands that they buy	0.803
I often identify with other people by purchasing the same eco-fashion brands they purchase	0.721
Willingness to pay price premium (WTP) Adapted from Farzin et al. (2022) α = 0.737; CR = 0.763; AVE = 0.625
I would be willing to pay a higher price for eco-fashion brands over other similar brands	0.839
I prefer to purchase from eco-fashion brand even if another brands advertises a lower price	0.917

Notes:

CR: Composite reliability; AVE = Average variance extracted

Table 3.

Discriminate validity, HTMT and VIF

Constructs	AL	EC	EWOM	PIEF	SI	WTP
AL	0.834	0.514	0.478	0.384 (1.192)	0.211	0.732
EC	0.401	0.683	0.298	0.382 (1.302)	0.547	0.654
eWOM	0.404	0.252	0.914	0.163	0.140	0.577 (1.022)
PIEF	0.327	0.327	0.148 (1.000)	0.890	0.379	0.523 (1.123)
SI	0.132	0.317	0.052	0.296 (1.112)	0.671	0.459
WTP	0.217	0.402	0.397	0.345	0.171	0.790

Notes:

The italic values are HTMT ratios; italicized values within parenthesis are VIF estimates; the rest are discriminant validity estimates

Table 4.

Test of hypotheses

Hypotheses	Path coefficients	T statistics	P values	Result
AL → PIEF	0.228	6.163	p < 0.001	Supported
EC → PIEF	0.200	5.172	p < 0.001	Supported
EWOM → WTP	0.395	5.062	p < 0.001	Supported
PIEF → EWOM	0.867	23.059	p < 0.001	Supported
PIEF → WTP	0.468	5.473	p < 0.001	Supported
SI → PIEF	0.601	13.262	p < 0.001	Supported

Table 5.

Assessing the indirect effect

Independent variable	Dependent variable	Direct effect	Indirect effect	Total effect
PIEF	EWOM	0.867	0.000	0.867
EWOM	WTP	0.395	0.000	0.395
PIEF	WTP	0.468	0.342	0.810