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TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION INTERNATIONAL BUSINESS TON DUC THANG UNIVERSITY REPORT BUSINESS RESEARCH METHODS FACTORS AFFECT THE CONSUMER BEHAVIORAL INTENT

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TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION INTERNATIONAL BUSINESS

TON DUC THANG UNIVERSITY

REPORT

BUSINESS RESEARCH METHODS

FACTORS AFFECT THE CONSUMER BEHAVIORAL INTENTION FOR SUSTAINABLE FASHION PRODUCTS

IN HCMC

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Student ID Full name Evaluation

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COMMENTS FROM LECTURER

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ACKNOWLEDGMENT

First of all, we want to start by expressing our sincere appreciation to Ms Tran Thi Van Trang for her insightful advice on the study of "Consumer Behavioral Intention for Sustainable Clothing" on university students in Ho Chi Minh City She gave us the appropriate direction and advice throughout our research course due to her significant expertise and research experience We are able to acquire our survey and study in the best possible ways as a result

Secondly, thanks should also go to the Department of Business Administration at Ton Duc Thang University for giving us the opportunity and conducive environment to learn and explore the subject

The completion of this study could not have been undertaken without the participation of the Snow White team’s precious members Finally, we would like to thank our classmates, friends and families for supporting and encouraging us throughout the whole journey

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Abstract

Currently, the fashion industry has caused negative impacts on the planet such as dries up water sources, makes up humanity’s carbon emissions, pollutes rivers and streams Purchasers tend to take the awareness from these factors and lead to an interest in sustainable clothing The drawbacks are pushing the fashion industry to create sustainable garments in order to maintain the higher level of the ecological system The key purpose of this investigation is to determine the variables that affect green customer behavioral desire in the fashion market, through a survey of around 250 shoppers We study how consumers anxiety due to the environmental breakdown, their perceptions of the product’s value and their readiness to pay higher price for sustainable clothing items

Our study demonstrates that, despite the kind of eco-materials utilized in the products, environmental issues and perceived value positively motivate consumers’ purchase intention and acceptance of a higher price Additionally, soctodemographic traits of customers have a great impact on their green purchasing decisions These findings have significant consequences for academics, managers, and policymakers because they can encourage customers to endorse sustainable clothing and a transfer to a more sustainable community For example, detailed guidelines are provided for marketing strategy and public relations initiatives

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Table of Contents

Chapter 1: Introduction

1.1 Background information

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Chapter 1: Introduction 1.1 Background information

One of the most polluting industries in the world is the clothes business (Fraccascia and Giannoccaro, 2019) The majority of nations where clothing is made allow the direct discharge of harmful effluent from textile industries into waterways without any treatment Toxic compounds found in wastewater include lead, mercury, and arsenic, among others Both the health of the millions of people who live along those river banks and aquatic life are seriously harmed by them Additionally, the pollution enters the water, where it eventually spreads around the world The use of fertilizers for cotton cultivation, which severely contaminated runoff waters and evaporation fluids, is another significant source of water pollution Chemicals are one of the main components of our clothes They are used during fiber production, dyeing, bleaching, and wet processing of each of our garments The heavy use of chemicals in cotton farming is causing diseases and premature death among cotton farmers, along with massive freshwater and ocean water pollution and soil degradation Some of these substances are also harmful to the consumer (see the section about toxicity) Over the past two decades, clothing prices have fallen as apparel companies switch to synthetic fabrics made from fossil fuels because they cost less than cotton At the same time, Asia has also become the leading center of clothing exports to Europe and other regions of the world

Experts say that the fast fashion industry cannot be completely eliminated Shein - China's "fast fashion" company, can launch about 7,000 new products a week - equivalent to the number of Zara's the whole year

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Shein Takes US Fast Fashion Lead

Fast Fashion Market Share, US$

100% 90%

80% # Shein 70% 23% H&M 60% 9% 20%

50% ee ae Zara USA

40%

1% 10% Forever 21 30%

20% Fashion Nova

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Take an example of the Chinese brand loved by Gen Z and rumored to be exploring an IPO — Shein— is now the largest Fast Fashion retailer in the US by sales, only two months after_displacing Amazon as the top e-commerce app downloaded in the US Just two months after surpassing Amazon as the most downloaded e-commerce app in the US, Shein, a popular Chinese brand among Gen Z and one that is thought to be considering an IPO, has become the largest Fast Fashion retailer in the US by sales Shein started 2021 with 13% of all Fast Fashion sales, following market leader H&M, according to Earnest's market share statistics Shein has increased its market share steadily since January and currently holds a 28% percent of the Fast Fashion market, with Zara being the only other brand to see growth in that time

The growing interest of consumers in sustainability issues (Aschemann-Witzel and Stangherlin, 2021; Chen and Hung, 2016; Dangelico et al., 2022; Featherman et al., 2021; D Huang et al., 2021; Y Huang et al., 2021; Yan et al., 2019) is driving fashion houses and retailers to take action and has been providing ground for the emergence of a hew consumer market for the so-called “sustainable fashion” Sustainable fashion, which is mainly associated with the environmental pillar of sustainability, is a term

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used to describe clothing produced with eco-friendly raw materials and less pollutant production processes (Caniato et al., 2012; Shen et al., 2014) Studies conducted on sustainable fashion have investigated the potential environmental benefits

(Hildebrandt et al., 2021), the sustainable product development processes (Fung et al., 2021; Province et al., 2021), the consumers’ engagement with sustainable fashion brands on social networks (Testa et al., 2021), and the consumer perceptions, attitudes, and willingness to pay for sustainable fashion products, as well as the factors impacting such behaviors (e.g., Grazzini et al., 2021; Kim et al., 2020; Eun Ju Lee et al., 2020; Lundblad and Davies, 2016; McNeill and Moore, 2015; Vehmas et al., 2018) The literature suggests that consumers want to be more sustainable when buying clothes (Brandao qand da Costa, 2021) However, the number of consumers who consider sustainability when shopping for clothes is still small (Diddi et al.2019) Nevertheless, the literature recognizes that this research is still at the early stages and highlights the need to further investigate the motivations driving consumers towards sustainable fashion, for instance by enlarging the spectrum of participants to sustainable fashion studies, as well as to investigate the importance of widening the scope of research to include different categories of sustainable clothing (Mukendi et al.,2020) In fact, understanding and studying pro-environmental behavior is essential to shift to a society characterized by more sustainable consumption patterns (Brandao O and da Costa, 2021; Connell, 2010)

Designers have a key role in the development of sustainable products (Esslinger, 2011) and eco-design choices may affect consumer behavior (Zeng et al., 2021) With regard to product design, materials are a key component of product form (Bloch, 2018) and, as such, may affect consumers’ perception of product function (Hoegg and Alba, 2011).Thus, the use of different eco-materials in sustainable fashion (Nitnimaki, (22010; Shen et al., 2014) may result in different responses by consumers However, this issue has received limited attention in the literature so far

In this paper, Vietnam was chosen as a setting for understanding consumer behavioral intentions for sustainable fashion, given the relevance of the Vietnamese fashion industry at both the country and international levels With more than 2 million workers, Vietnam's garment and clothing industry is one of the main contributors to

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the nation's economic growth In 2014, textile and apparel exports increased 18% year over year to nearly $20 billion, accounting for 15% of the nation's GDP and 18% of its total exports Yet, issues develop at the lower ends of global supply chains where production is geared toward meeting fast fashion fads, as is frequently the case elsewhere

As sustainable development is becoming the order of the day, Vietnamese fashion firms are having no choice but to adapt themselves to greener production Nguyén Thi Tuyét Mai, deputy general secretary of Vietnam Textile and Apparel Association (VITAS), acknowledged that eco-fashion was riding high in many countries, and Viét Nam could not afford to lag behind “Vietnamese fashion producers have no other choice but to innovate to keep pace with change,” said the deputy general secretary For this reason, fashion firms have begun to shift their focus to green input and use environment-friendly fibers in their designs Fabric making is changing accordingly Vietnam has only recently started to communicate, receive, and care for the obvious message of sustainable fashion since mid-2016 (Eco Fashion) But this tendency has so far been identified by designers more and more promptly to consumer acceptance Forbes Magazine predicts that sustainable fashion will continue to have an impact in 2021, and for good reason Sustainable fashion is the ideal and beneficial alternative to the damaging effects that fast fashion has on the environment People had to work long days at home while the illness outbreak in the country was still out of control, so they tended to wear simple costumes to conserve money and save the environment But how significant is eco-friendly clothing in Vietnam? There are several benefits to encouraging more ethical and aware behavior in the fashion business Starting with the environment, sustainable fashion may lessen the damaging effects of the business When choosing this issue, our group hoped to shed more light on the factors driving consumer behavior Although this subject has been researched in other countries, Vietnam hasn't done much of it yet Research on this topic will also benefit local communities by encouraging moral workplace behavior and the expansion of small firms Last but not least, as customers give sustainability top priority when purchasing apparel, sustainable fashion has the potential to boost Vietnam's economy

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In Vietnam, a major apparel exporter, sportswear brand Decathlon, and the Vietnam Textile and Apparel Association also recommend that factories adapt to stay ahead of regulations and sustainable fashion trends However, according to statistics reported by VTV, only 5% of the domestic textile and garment industry meets this criterion According to Statista, the garment market in Vietnam is forecasted to reach $7.33 billion by 2025 and has plenty of room to exploit Before Uniqlo, a brand also from Japan that currently has 12 stores (entering the market in 2019), other fast fashion brands such as H&M,and Zara have started appearing in the Vietnamese market since 2016 -2017

In 2022, Japanese retail group Aeon has just launched a low-cost fast fashion brand My Closet Aeon, aiming to compete with other apparel brands such as H&M and Uniqlo at Aeon Mall Binh Tan, Ho Chi Minh City This is the first time a famous retail group in Japan has encroached on fashion products in Vietnam The My Closet system includes 400 different products, targeting female customers between the ages of 16-24 In particular, compared to foreign brands present in Vietnam, My Closet's fashion products will have a market priceof 50-75% lower

Share with Nikkei Asian Review, Mr Yasuyuki Furusawa - General Director of Aeon Vietnam said, Aeon's goal is to turn the new brand into a breakthrough in the company's first fast fashion segment That means Ho Chi Minh 1s still one of the most potential markets for fast fashion and the trend of sustainable fashion is just at the beginning point of the process

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1.2 Problem Statement

Firstly, the predisposition to purchase sustainable clothing is positively associated with consumers' environmental issues Consumers just concerned about the environment may not purchase green or sustainable products due to higher prices However, consumers with higher environmental concerns are willing to pay a higher price for products Therefore, consumers’ willingness to spend more for sustainable clothing is significantly associated with their concern for the

environment That will explain why perceived value is a multidimensional construct that influences consumers' willingness to pay a premium price for eco-friendly products Prior knowledge is important for consumers’ decision-making process, as it can help them process information more efficiently and feel more certain in buying a product Perceived value is important to define consumers’ multilayered value perceptions According to research by Zhang et al and Hasbullah, it has a positive impact on consumers’ willingness to pay more for slow-fashion items

Secondly, in recent decades, the production and consumption of textiles and fibers have increased significantly due to population growth, as well as higher worldwide incomes and living standards (Shirvantmoghaddam et al., 2020) Furthermore, a number of businesses in the fashion sector are adopting the "quick fashion retailing" mentality more and more As a result, fashion firms release a number of collections each year of low-durable products that reflect the most recent consumer trends, with the intention of selling apparel in enormous quantities and at low prices (Birtwistle and Moore, 2007; Cachon and Swinney, 2011; Vehmas et al., 2018) The growing interest of consumers in sustainability issues (Aschemann-Witzel and Stangherlin, 2021) is driving fashion houses and retailers to take action and has been providing ground for the emergence of a new consumer market for the so-called “sustainable fashion” Sustainable fashion, which is mainly associated with the environmental pillar of sustainability, is a term used to describe clothing produced with eco-friendly raw materials and less pollutant production processes (Caniato et al., 2012; Shen et al.,

2014)

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Thirdly, studies conducted on sustainable fashion have investigated the potential environmental benefits (Hildebrandt et al., 2021), the sustainable product development processes (Fung et al., 2021; Provin et al., 2021), the consumers’ engagement with sustainable fashion brands on social networks (Testa et al., 2021), and the consumer perceptions, attitudes, and willingness to pay for sustainable fashion products, as well as the factors impacting such behaviors (e.g., Grazzini et al., 2021; Kim et al., 2020; Eun Ju Lee et al., 2020; Lundblad and Davies, 2016; McNeill and Moore, 2015; Vehmas et al., 2018) The literature suggests that consumers want to be more sustainable when buying clothes (Brandao ~ and da Costa, 2021) However, the number of consumers who consider sustainability when shopping for clothes 1s still small (Diddi et al., 2019) The first determining aspect is money According to studies, customers would rather pay more for style, quality, and fashion that offers them value for money than they would be prepared to spend more for fashion that is more sustainable People's motivation to act morally is hampered if conventional goods are being heavily reduced The next reason is that sustainability entails reusing and continuing, but fashion is typically seen to be what drives consumption and is described in terms of constant change and novelty This explains why the market for renting out clothing hasn't expanded and why it's still a specialized industry Nevertheless, the literature recognizes that this research is still in the early stages and highlights the need to further investigate the motivations

driving consumers towards sustainable fashion, for instance by enlarging the spectrum of participants to sustainable fashion studies, as well as to investigate the importance of widening the scope of research to include different categories of sustainable clothing (Mukendi et al., 2020) In fact, understanding and studying pro- environmental behavior is essential to shift to a society characterized by more sustainable consumption patterns (Brandao ~ and da Costa, 2021; Connell, 2010)

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1.3 Object and scope of the study 1.3.1 Research object

Consumer intention criteria that determine if a sustainable piece of clothing created with a certain eco-friendly material is reasonable in Ho Chi Minh City, Vietnam, are the study's research topics Respondents are Vietnamese shoppers who have been willing to spend more on eco-friendly clothes due to their environmental awareness 1.3.2 Scope of the study

In terms of space: all surveys were collected from individuals currently living,studying, and working in Ho Chi Minh City, Vietnam

In terms of time: the time for data collection was prepared and implemented, within 02 months from March to May 2023

1.4 Objectives of the study

This paper aims at investigating which are the factors that influence the green consumer behavioral intention in the fashion industry In particular, the Theory of Planned Behavior (TPB) (Ajzen, 1991) has been successfully used to explain a wide range of pro-environmental behaviors and intention to purchase green and fashion products (e.g., Brandao ~ and da Costa, 2021; Onel, 2017; Perri et al., 2020; Rhodes et al., 2015; Saricam and Okur, 2019; Xu and Jackson, 2019) In this study, we rely on this theory, trying at the same time to explain the main variables also through the lens of other relevant theories for understanding consumer behavior (e.g., theory of reasoned action and value-belief-norm) Specifically, this article investigates the influence of consumer’s environmental concern, perceived value of the product, and consumer familiarity with the product (both direct and indirect experiences) on purchase intention and willingness to pay a premium price for sustainable fashion products We built a theoretical model and, via a survey conducted on about 250

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Vietnamese consumers between March and May 2023, we tested it for products made of organic fibers

Theoretically, this research is intended to check the factors of Theory of Planned Behavior (TPB) used to clarify effects of pro-environmental behaviors and intentions to purchase sustainable fashion products After the above factors are checked and analyzed, it will be the base for us to evaluate the importance of consumer environ- mental concern on consumption purpose as well as the satisfaction of customers when using sustainable fashion On the practical side, this research would like to provide the following recommendation to examine the theoretical relativity of how consumer behaviors influence the intentions of purchasing sustainable fashion products 1.5 Research questions

In order to achieve the above research objectives and orientation for the research, our group has identified these question to solve the following problems:

Why do people prefer sustainable clothing to quick clothing ?

What factors impact on customer behavior about green clothes in the fashion industry? 1.6 Significance of research

Compared to existing studies, this paper proposes several elements of novelty This is the first study that integrates the consumer behavior perspective with the perspective of green product design, by comparing green consumer behavioral intention for products belonging to the same product class (clothing) and made of different eco- materials Furthermore, this is the first study that considers environmental concern together with consumer perceived value of the product and consumer familiarity with the product as antecedents of green consumer behavioral intention Results of this paper provide implications for scholars, managers, and policymakers

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1.7 Structure of the research paper

The research topic of the group is divided into 5 main chapters, specifically as follows:

« Chapter 3: Research methodology

This chapter clearly analyzes the methods used in the research " Chapter 4: Data Analysis and Result

This chapter summarizes the conclusion outcomes after researching and discussing the results of data analysis

" Chapter 5: Conclusion and Recommendation

This chapter includes a summary of the research topic, making recommendations for the

research subjects as well as other stakeholders

We present the implications of our study, along with limitations and future research directions

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II- Literature review 2.1 Theoretical Foundation

2.1.1 Green consumer behavior

Green consumer behavior (Katherine White, 2019) refers to the actions and purchasing decisions of individuals who prioritize environmental concerns when making choices about the products and services they consume It involves considering the environmental impact of the products and services they buy, as well as the sustainability practices of the companies that produce them

Green consumer behavior can include actions such as:

Choosing products made from environmentally sustainable materials Reducing energy consumption by choosing energy-efficient products Reducing waste by choosing products with minimal packaging

2.1.2 Green product

A green product( Prinona, 2019) Das is a sustainable product designed to minimize its environmental impacts during its whole life-cycle and even after it’s of no use Green products are usually identified by having two basic goals — reducing waste and maximizing resource efficiency They are manufactured using toxic-free ingredients

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and environmentally-friendly procedures and are certified by recognized organizations like Energy star, Forest Stewardship Council, etc

Some of the characteristics of a green product are:

® Grown without the use of toxic chemicals and within hygienic conditions ®@ Can be recycled, reused and is biodegradable in nature

® Comes with eco-friendly packing Uses the least resources Is eco-efficient

Has reduced or zero carbon footprint Has reduced or zero plastic footprint 2.1.3 Eco-materials

An eco-material is an alternative to a traditional material for a specific use It has a lower environmental impact than the traditional material it replaces, yet it maintains similar properties, particularly in terms of durability Eco-materials are used within a general eco-construction approach aimed at reducing the structures’ environmental footprint.(Gwenn Le Saout, 2018)

2.1.4 Theory of Reasoned Action (TRA)

The Theory of Reasoned Action (TRA) (Fishbein and Ajzen, 1975), which is often extended to the Theory of Planned Behavior (TPB), is a cognitive theory that helps psychologists understand human behavior in specific contexts

Most notably, the Theory of Reasoned Action has been used to assist in predicting and explaining several health behaviors (LaCaille, 2020)

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The theory of reasoned action was developed by psychologists Martin Fishbein and Icek Ajzen in 1975, originally as an improvement to the information integration theory

Fishbein and Ajzen formulated the theory after attempting to determine the differences between attitude and behavior

The theory of reasoned action differs from information integration theory for a few reasons The first of these is the idea of behavioral attention

Additionally, the theory of reasoned action acknowledges that there are factors that can limit the influence of attitude on behavior

The Theory of Reasoned Action has four main terms: Belief, Attitude, Subjective Norms, and Intention :

1 Belief: is the probability that an object has some attribute Usually, this is used to mean that someone has a belief that some action or behavior will lead to a

consequence

2 Attitudes: are our positive or negative evaluation of a particular behavior — whether or not someone thinks the behavior is a good or bad idea or if it will lead to outcomes that they personally value

3 Subjective norms: are the sum of all of the important people in someone’s life and whether they think those people would want them to perform the behavior 4 The intention: is the readiness to perform a behavior This describes how likely

someone thinks they are to perform a specific behavior 2.1.5 Theory of Planned Behavior (TPB)

The Theory of Planned Behavior (TPB) ( Ajzen,1991 ) is seen as an improvement to the TRA, often mentioned and discussed with it This makes sense, since the TPB reinforces and adds to the assumptions in the TRA

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The TPB maintains what TRA postulated about human behavior being governed by one’s attitudes and behavioral intentions characterized by the presence of social norms and the exercise of volitional control However, it incorporates several modifications that allows for greater accuracy and reliability in understanding one’s attitudes and predicting his deliberate, planned, and resulting actual behavior

The Theory of Planned Behavior (TPB) started as the Theory of Reasoned Action in 1980 to predict an individual's intention to engage in a behavior at a specific time and place The theory was intended to explain all behaviors over which people have the ability to exert self-control The key component to this model is behavioral intent; behavioral intentions are influenced by the attitude about the likelihood that the behavior will have the expected outcome and the subjective evaluation of the risks and benefits of that outcome

The TPB has been used successfully to predict and explain a wide range of health behaviors and intentions including smoking, drinking, health services utilization, breastfeeding, and substance use, among others The TPB states that behavioral achievement depends on both motivation (intention) and ability (behavioral control) It distinguishes between three types of beliefs - behavioral, normative, and control The TPB is composed of six constructs that collectively represent a person's actual control over the behavior

1 Attitudes - This refers to the degree to which a person has a favorable or unfavorable evaluation of the behavior of interest It entails a consideration of the outcomes of performing the behavior

2 Behavioral intention - This refers to the motivational factors that influence a given behavior where the stronger the intention to perform the behavior, the more likely the behavior will be performed

3 Subjective norms - This refers to the belief about whether most people approve or disapprove of the behavior It relates to a person's beliefs about whether peers and people of importance to the person think he or she should engage in the behavior

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4, Social norms - This refers to the customary codes of behavior in a group or people or larger cultural context Social norms are considered normative, or standard, in a group of people

5 Perceived power - This refers to the perceived presence of factors that may facilitate or impede performance of a behavior Perceived power contributes to a person's perceived behavioral control over each of those factors

6 Perceived behavioral control - This refers to a person's perception of the ease or difficulty of performing the behavior of interest Perceived behavioral control varies across situations and actions, which results in a person having varying perceptions of behavioral control depending on the situation This construct of the theory was added later, and created the shift from the Theory of Reasoned Action to the Theory of Planned Behavior

2.1.6 Sustainable fashion

Sustainable fashion is an umbrella term used to describe products, processes, activities, and decision-makers involved in creating a carbon-neutral fashion industry Sustainable Fashion promotes equality, social justice, animal welfare, and ecological Integrity

Sustainable fashion insists on locally sourced and produced garments, a transparent supply chain, traceable work processes, and raw materials, safe working conditions, and fair wages

there’s no such a thing as zero-impact clothing There’s always some negative impact on the environment

However, there are brands that are set to make a difference While some brands focus on one or two sustainability issues, others manage to tackle more of them

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The problem is that there’s no regulation on the term “sustainable fashion” In an industry that is already murky, some brands are being dishonest about their environmental efforts

This is known as greenwashing, manipulative tactics to promote sales without even trying to run a truly sustainable business

So how can you spot truly sustainable clothing brands?

Start with those who put an emphasis on transparency in their supply chains Also, keep an eye out for partners and standardized certificates that stand behind sustainability claims

These include:

® GOTS: The Global Organic Textile Standard that certifies organic cotton @ GRS: Global Recycled Standard that certified recycled content claims e LEED: certification for reduced energy use in factories

@ Bluesign: for chemical and environmental management

2.1.7 Value-belief-norm theory (VBN)

Choosing environmentally friendly modes of transportation can be based on a sense of moral obligation to act in a sustainable fashion Stern's value-belief-norm theory of environmentalism provides a framework for investigating normative factors that promote sustainable attitudes and behavior The theory integrates value theory, the new environmental paradigm perspective, and norm-activation theory (NAM; Schwartz, 1977) It suggests a chain of variables, from values and general

environmental concern to specific beliefs about the negative consequences of certain actions and the individuals’ ability and responsibility to avert these negative consequences, which in turn activates sustainable personal norms for behavior

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Focusing only on fashion for young people may have the following limitations Ignore many other aspects of ages: Focusing on a specific customer group may overlook other potential markets, for example, the elderly, the thin, the fat, the disabled, etc This can lead to lost sales opportunities and reduced revenue Secondly, lack of diversity: Focusing on only one group of customers can lead to a lack of diversity in the product This can prevent customers with different preferences from finding the right product for them In addition,it does not meet the diverse needs of consumers: The needs and fashion preferences of consumers are very diverse Young research subjects should have a short lifespan: Fashion for young people usually has a shorter lifespan than fashion for older people Focusing only on this market can make products obsolete quickly, leading to loss of potential customers Therefore, focusing only on fashion for young people has limitations and should not ignore the needs and preferences of different groups of customers

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