Journal of International Economics and Management (Jul 2022)
Generation Z willingness to pay for sustainable apparel: the influence of labelling for origin and eco-friendly material
Abstract
The purpose of this study is to identify the willingness to pay (WTP) and trade-off that Vietnamese generation Z consumers could make when purchasing eco-friendly apparel. This research uses the Discrete Choice Experiment methodology to measure consumers' WTP and how consumers trade off among different attributes, including eco-friendly, origin, manufacturing technology, and materials. The results show that generation Z consumers are willing to pay for organic label products at a higher price of 21.22% and eco-friendly label items at a higher price of 37.72%. Consumers who have a higher level of corporate social responsibility (CSR) awareness and higher income are willing to pay more for organic and eco- friendly label apparel. They were least willing to purchase apparel that is made in China, while they see no difference between T-shirts made in Vietnam and in other countries except China. Consumers in the current study were more willing to purchase eco-friendly as compared to organic apparel. The findings suggest that enterprises should consider the language used when communicating with consumers. Also, consumers prefer products made in Vietnam, suggesting the promotion of domestic manufacturing through in-depth branding, product positioning, and promotions. The results also confirm that the application of CSR in enterprises is the right and necessary step to be taken for businesses to develop in a sustainable integration world.
