A sustainable Retailer's journey to sustainable practices: Prioritizing the customer and the planet

Rapidly increasing demand for eco-friendly products is evidence of consumers' intention to make responsible purchases. As a result, companies and retailers are increasingly pressured to reconsider their product lines and provide environmentally friendly products in order to satisfy their customers' demands. The current study aims to explore how sustainable retailers, sustainable product packaging, sustainable product availability, and lower price perception impact sustainable behavioral intention towards (SBI) sustainable consumption behavior (SCB). A survey in the form of a self-administered questionnaire was used to get information from millennials for this study. Smart Partial Least Square (SEM) was employed to analyze the data. This study's sample was obtained using judgmental sampling, resulting in 297 valid responses. The results indicate that millennials are progressively adopting environmentally responsible consumption practices. The study found that sustainable retailers, sustainable product packaging, availability, and lower pricing perception contribute to sustainable behavior intentions. The findings indicate that promoting ecological practices and environmentally conscious consumers can assist developing nations in attaining sustainability and ecological stability.     

Consumer heterogeneity and online vs. offline retail spatial competition

This paper develops a game-theoretic spatial model featuring consumer heterogeneity in online vs. offline retailers’ spatial competition. We find that consumers’ browse-and-switch behavior intensifies the competition because both offline and online retailers’ price and profit decline when the behavior occurs, but it is not necessarily a threat to offline retailers especially when the product relates more closely to experience. We consider six equilibrium scenarios for different combinations of consumer behaviors when considering a hybrid retailer. The analysis taking consumer heterogeneity into consideration shows that the hybrid retailer operating both online and offline is not always the winner. Particularly, the business opportunity for the offline retailer lies in consumers’ willingness to pay in store, and whether the retailer launches an online store depends on the type of products and services provided.     

Influence of retailers’ commitment to sustainable development on store image,consumer loyalty and consumer boycotts: Proposal for a model using the theory of planned behavior

This research has a twofold objective: first, to propose a tool for evaluating retailers’ commitment to sustainable development as perceived by consumers (RCSD); second, to test a conceptual framework adapted from the Ajzen and Fishbein (1980) model and to study the impact of RCSD on the retailer’s image, consumer loyalty and boycotts. Structural equation modeling was used to test the hypothesized relationships. The study confirms the link between RCSD and the consumers’ positive image toward the retailer and suggests that sustainable development practices can help retailers build a good image among consumers. But there is no link between RCSD and consumer loyalty, showing that sustainable development is not a purchase criterion for consumers.     

Consumer response to retailer use of cause-related marketing: Is more fit better?

Although marketers increasingly rely upon cause-related marketing strategies to increase sales, controversy exists regarding whether a retailer should partner with causes offering high or low fit levels with its core business practices. The present investigation extends prior research by examining how retailer–cause fit affects consumer evaluations of retailers’ cause-related marketing strategies. The results indicate that the effects of retailer–cause fit are moderated by consumer perceptions of the retailer's motive for engaging in cause-related marketing (Study 1), by the affinity that consumers hold for the social cause component of the campaign (Study 2), as well as by the interactive effects associated with the two moderators (Study 3).     

Consciousness for fair consumption: conceptualization,scale development and empirical validation

Sustainable consumption means that consumers act in an environmentally and socially responsible manner. Compared with the vast amount of studies concerning environmentally conscious consumer behaviour, relatively little is known about socially conscious consumption. The present paper focuses on fair consumption as an important aspect of social consumption. In our study, consciousness for fair consumption (CFC) is defined as a latent disposition of consumers to prefer products that are produced and traded in compliance with fair labour and business practices. A scale to measure CFC was conceptualized and tested in three independent empirical studies. Two studies were conducted at European universities (2010 and 2012) and used 352 and 362 undergraduate business students respectively. The third study, conducted in 2011, used 141 employees at a European university. The results confirmed the reliability and validity of the new CFC scale across samples. While being moderately related to other aspects of sustainable consumption such as ecological concern and moral reasoning, CFC was significantly distinct from those concepts. Most importantly, it was established that the CFC, as measured by the new CFC scale, is a strong determinant of consumption of fair trade products that has been neglected in existing research.     

Forging meaningful consumer-brand relationships through creative merchandise offerings and innovative merchandising strategies

This research highlights the importance of retailer-consumer identity congruence – the match between the retail brand identity and the consumers’ identity. Retailers can leverage identity congruence to forge meaningful consumer-brand relationships which will result in enhanced engagement, brand loyalty, and willingness to pay. The paper discusses how creative merchandise offerings and innovative merchandising strategies contribute to the creation of a unique retail brand identity and facilitate communication of this identity to consumers. Based on interviews with retail practitioners, we formulate five ways in which retailers can establish and communicate their brand identity through creative merchandise offerings (by focusing on unique and original merchandise, leveraging local merchandise to reflect the area, making their merchandise akin to art, offering sustainable merchandise, and a high fashion product assortment). In addition, we focus on five innovative merchandising strategies which help the retailer connect the brand to the customer (creating themes, reflecting the brand story, being playful, signaling exclusivity, and virtual merchandising). We then discuss how retailers can utilize social and technological tools to amplify the retailer identity to consumers, thus increasing the likelihood that a consumer will view their identity congruent with the retail brand.     

Consumer cynicism and perceived deception in vanity sizing: The moderating role of retailer (dis)honesty

While prior scholarship has acknowledged the overall positive influence of vanity sizing on consumer outcomes, no work to date has addressed the psychological process that occurs when consumers suspect retailers of dishonest sizing information. This is an important process to understand because perceptions of deceptive retailer motives lead consumers to react negatively to the product and the retailer, regardless of the retailer's actual motives. Thus, this research utilizes attribution theory to examine perceived deception as a mediator between consumer cynicism (a dispositional trait) and consumer outcomes. The results reveal that at higher levels of consumer cynicism, prior knowledge of deceptive sizing practices has an amplifying effect on the influence of consumer cynicism on perceived deception, while retailer honesty with sizing issues helps to block this influence. Further, perceived deception leads to reduced consumer outcomes, confirming prior findings in the literature.     

Small-independent retailers vs. organized retailers: An empirical study in Indonesian economics of service industries

This paper explores the influence of strategic planning and functional-business strategy in helping small-independent retailers/traditional retailers to survive amidst the competition with organized retailers. Based on cross-sectional survey research, this study illustrates the influence of strategic planning and functional-business strategy to retailer–supplier relationship, consumer loyalty program, and retailer performance. In order to clarify the relationships among these constructs, a structural equation model (SEM) is employed to examine the model fit and the five hypotheses. The results show that strategic planning is critical for small independent retailers due to its influence on the retailer–supplier relationship and consumer loyalty program. Besides, consumer loyalty program is also influenced by functional-business strategy. The retailer–supplier relationship and consumer loyalty program exhibits a positive influence on the small-independent retailer performance. The research supports the existence of a more complex that the consumer loyalty program fully mediates the relationships between strategic planning and functional-business strategy on retail performance. Moreover, the retailer–supplier relationship fully mediates the relationship between strategic planning and small retailer performance. These findings constitute a new contribution to the literature on small retailer research streams through the development of cross category relationships such as strategy, buyer behavior, and structure categories. Besides, this study can enhance the strategic management as well as the performance of small-independent retailers to achieve sustainable competitive advantage.     

Willingness to act and environmentally conscious consumer behaviour: can prosocial status perceptions help overcome the gap?

Green marketing has not shown expected results in recent years in terms of real changes in behaviours, products and market structures as had been anticipated. Consumer behaviour plays an important role in making these changes happen, and drivers of environmentally conscious consumer behaviour still need to be examined. Concepts of ‘concern’, ‘information about environmental impact’ and ‘willingness to act’ are seen as the key predictors of environmentally conscious consumer behaviours. Although green marketing has been able to address genuinely concerned consumers, additional insights are needed regarding how to appeal to more mainstream consumers. Thus, this paper proposes an extended model of environmentally conscious consumer behaviour in which the gap between willingness to act and actual environmentally friendly consumption is addressed by the moderating role of ‘prosocial status’ perceptions. In the model, ‘concern’ is positively related to ‘willingness’ and both ‘willingness’ and ‘information’ are positively related to ‘behaviour’, while ‘prosocial status’ perceptions moderate ‘behaviour’. The model was verified using a quota sample of 319 general population respondents from a Central European country. According to data, ‘prosocial status’ perceptions increase the positive association between ‘willingness’ and ‘behaviour’ and could be incorporated into green products and advertising to signal personality traits like kindness and intelligence. One possible implication for marketers is that women have a higher average representation in groups of people with high prosocial status perceptions.     

Factors affecting Indian shoppers׳ attitude and purchase intention: An empirical check

The objective of this study was to examine affecting factors that influence Indian consumers׳ attitude toward retailers and purchase intention from the retailers. A questionnaire was used to collect data using systematic sampling from department store shoppers of age 18 years and above in Kolkata, a metropolitan city of India. Structural equation modelling (n=355) was used to examine the impact of affecting factors on consumers׳ attitude toward retailers and the impact of consumers׳ attitude toward retailers on purchase intention. Results indicated that the factors namely self-congruity, retailer awareness, retailer associations and retailer perceived quality have significant positive impacts on consumer׳s attitude toward retailers. The results also indicated that consumers׳ attitude toward retailers positively influences purchase intention. Arguably, this paper was the first to explore such linkages between the affecting factors that influence consumers׳ attitude toward retailers and purchase intention in Indian context.     

Retailer service acceptance: simply adding a service to the offer portfolio or committing to marketing it

By virtue of their significant influence on customers’ decisions, retailers’ acceptance of a service plays a significant role in the success of that service. Therefore, retailers’ acceptance of the service and commitment to selling the service must be ensured. However, this issue has attracted limited attention in acceptance research, which tends to focus on goods, technologies and consumers. Based on a survey of consumer durables retailers in three countries, this study focuses on retailer acceptance of a complimentary use-guarantee service, which is meant to maintain customer’s ability to use a semi-durable consumer product. The results of this study link retailers’ perceived usefulness, and commitment & effort to their service acceptance. Manufacturer support was found to moderate the relationship between ease of use and acceptance. Further, nationality, retailer’s own use of the service as a consumer and the importance of the manufacturer’s business for retailers were important for retailer acceptance. Thus, manufacturers need to focus as strongly on retailer acceptance as on the end customer acceptance to ensure service success. They also need to ensure the usefulness of the service for retailer, give retailers a reason to commit to the service sales and provide enough support to make retailers comfortable in selling the service.     

Does Innovativeness Drive Environmentally Conscious Consumer Behavior?

This study seeks to improve the predictive utility of the attitude–behavior link within the realm of environmentally responsible consumption by examining the role of consumer innovativeness as a mediator. A sample of over 1400 American consumers provided data regarding their attitudes about the environment, receptiveness to new and innovative ideas, propensity to adopt new products early, and likelihood of performing a variety of green behaviors. The evidence suggests that one dimension of consumer innovativeness mediates the link between environmentally conscious attitudes and behaviors: the general affinity for new ideas. Managerial implications of these findings are discussed.     

Despite unethical retail store practices,consumers at the bottom of the pyramid continue to be loyal

Research in the area of retail store loyalty agrees that consumers reward retailers when they are satisfied with its products, services, and its image. Moreover, one would agree that if the retailer engages in unethical practices, the customer would quickly defect and even engage in word of mouth to influence others to defect. But this might not be the case universally. One consumer group that continues to be loyal to a retailer despite widespread unethical practices is the poor. A growing stream of research under the label of bottom of pyramid (BoP) and subsistence consumers has increasingly pointed out the market attractiveness of this segment to multinational companies. These poor consumers are individuals who earn approximately $2 per day. In this paper, we explain the nature of widespread unethical retail practices prevalent amongst the neighborhood retail stores (or kirana as they are referred to in India) that serve the BoP consumer, types of patronage behaviors, and the reasons ‘why’ these consumers continue to support the kirana store. The data for this paper comes from a qualitative study conducted with 58 urban poor consumers in India. This study carries significant implications for both domestic and multinational companies that market fast-moving consumer goods in the BoP market.     

Retailer corporate social responsibility and consumer citizenship behavior: The mediating roles of perceived consumer effectiveness and consumer trust

Retailers often face pressure from stakeholders to address social and environmental issues. The purpose of this study is to investigate the influence of retailer corporate social responsibility (CSR) on consumers' perceptions and behavior. Drawing on the theoretical foundations of social identity theory and signaling theory, this study presents and validates a unique model which examines the mediating effects of perceived consumer effectiveness and consumer trust on the relationship between retailer CSR and consumer citizenship behavior. Using a sample of 407 consumers in China, results of structural equation modeling show that retailer CSR is positively associated with consumer citizenship behavior. Additionally, perceived consumer effectiveness and consumer trust positively mediate this association. Taken together, these findings provide support for retailers to develop CSR programs that remind and reinforce consumers’ perceptions about socially responsible behaviors.     

How do crazy rich Asians perceive sustainable luxury? Investigating the determinants of consumers’ willingness to pay a premium price

Motivated by the increasing media coverage of environmental disasters and growing evidence of humans’ detrimental impacts on the natural environment, the key aim of this study was to examine consumer interest in buying sustainable luxury products. Rooted in the Value-Belief-Norm (VBN) theory, a research framework incorporating pro-environmental self-identity (PSI), consumer pro-environmental values (CPV), engagement, and willingness to pay a premium price (WPP) was proposed. To better understand the sustainable behavior of consumers, this study modelled myopia as a personality trait that moderates the aforementioned relationships. Partial least squares path modelling (PLSPM) was employed to analyze data collected from 296 Chinese consumers who had purchased luxury fashion products. The results highlighted the influential role of CPV in shaping both consumer engagement and WPP, surpassing the impact of PSI. Also, the study established the positive effect of engagement on WPP and confirmed its mediating role in the relationship between CPV and WPP. The incorporation of myopia as a moderator further enhanced the explanatory power of the VBN theory in understanding sustainable consumption evaluations. The findings revealed that the positive links between PSI, CPV, engagement, and WPP were particularly pronounced among non-myopic consumers, suggesting that a clear vision of long-term consequences strengthens the connections between these constructs. These findings offer valuable insights to both academics and practitioners, particularly in the realm of luxury fashion brands within Chinese culture. They provide a foundation for designing targeted marketing communication strategies that effectively leverage and cultivate consumers' pro-environmental self-identities and values. By aligning brand messaging with these values, luxury fashion brands can enhance consumer engagement and foster a willingness to invest in sustainable products. Ultimately, this study contributes to the growing body of knowledge on sustainable consumption and offers practical implications for promoting environmentally responsible choices in the luxury fashion industry.     

THE IMPACT OF ORDER FULFILLMENT SERVICE ON RETAILER MERCHANDISING DECISIONS IN THE CONSUMER DURABLES INDUSTRY

Historically, manufacturers held the upper hand in consumer goods supply chain relationships. There has been a pervasive shift of power to retailers over the past 20 years, however, ushering in an era of waning consumer loyalty to manufacturers' brands and increasing loyalty to retailers. While there is extensive research focusing on the manufacturer‐consumer relationship, retailers' increased ability to influence consumer purchases suggests that manufacturers should understand not only consumer perceptions of delivery service, but also retailer perceptions. We incorporate social network theory to examine the manufacturer‐retailer‐consumer linkages in the consumer durables industry, with the emphasis on the retailer in the role of the “broker” (Burt 1992). Specifically, we examine whether retailer perceptions of a manufacturer's order fulfillment service (OFS) positively impacts retailer perceptions of the manufacturer's brand, the importance of the product, and the likelihood of the retailers' salespeople to recommend the product to consumers. The research bridges OFS and retailer purchase behavior in a consumer durables industry characterized by high levels of consumer involvement, brand presence, and personal selling.     

Competent consumers? Consumer competence profiles in Norway

Consumer competence is increasingly important in today’s commercialized society. This paper refers to some main findings from a national representative survey on consumer competences and practices in Norway. To be a competent consumer, it is decisive to be informed about products and to be familiar with how markets function. In this paper, consumers’ self‐reported efforts to keep themselves informed about specific markets is treated as an indicator of consumer competence. First, the results indicate that Norwegian consumers’ competence, according to their own judgement, is rather mediocre. Second, different groups of consumers seem to have different consumer competence profiles. Accordingly, we find that some consumers are price‐conscious in their daily purchases, others are price‐conscious when they make their yearly dispositions in the financial markets, while a third group is community‐oriented and active in the environmentally friendly and ethical product markets. Third, the analysis indicates that consumer competence is an important indicator of how market‐rational and reflective consumers’ choices and practices are.     

Ethical consumer behaviour in Germany: The attitude‐behaviour gap in the green apparel industry

In today's society, the trend of ethical consumerism is undeniable. Yet, even though consumers are ethically concerned, they rarely transform their intentions into a green purchasing behaviour—and this phenomenon is also evident in the sustainable fashion industry. This study aims to understand the prevailing attitude‐behaviour gap and explores the barriers that constrain consumers in purchasing green apparel. A total of 13 in‐depth interviews were conducted and analysed to the principles of grounded theory. The analysis reveals that the following barriers impede consumption of sustainable fashion: price, availability, knowledge, transparency, image, inertia and consumption habits. The impact of each dimension on consumers' purchase decisions might be of interest to apparel manufacturers and retailers who should implement strategies to encourage eco‐conscious apparel acquisition and focus on diminishing these barriers. Accordingly, three major recommendations are made: (a) to concentrate on specific product attributes; (b) to adopt an efficient digital communication strategy; and (c) to make a greater effort on making green apparel attainable. This study contributes to the overall understanding of consumer behaviour in the ethical fashion industry and examines in‐depth the purchasing criteria for sustainable fashion for consumers.     

Suspicion and Perceptions of Price Fairness in Times of Crisis

Times of crisis bring about increased demands on businesses as shortages, or unexpected but significant, business costs are encountered. Passing on such costs to consumers is a challenge. When faced with a retail price increase, consumers may rely on cues as to the motive behind the increase. Such cues can raise suspicion of alternative motive (e.g., taking advantage of the consumer) affecting consumers’ judgments of price fairness. This research investigates two triggers of suspicion: salience of alternative motives, and behavior judged to be out-of-character for the business. Results of the two studies within crisis contexts indicate that suspicion is created when alternative motives are salient and when a retailer acts out-of-character. Multiple group analyses revealed that suspicion induced negative affect and subsequent perceptions of price fairness. When suspicion was present, more negative feelings toward the retailer and judgments of price unfairness resulted.     

Feelings that Make a Difference: How Guilt and Pride Convince Consumers of the Effectiveness of Sustainable Consumption Choices

A significant body of research concludes that stable beliefs of perceived consumer effectiveness lead to sustainable consumption choices. Consumers who believe that their decisions can significantly affect environmental and social issues are more likely to behave sustainably. Little is known, however, about how perceived consumer effectiveness can be increased. We find that feelings of guilt and pride, activated by a single consumption episode, can regulate sustainable consumption by affecting consumers’ general perception of effectiveness. This paper demonstrates the impact that guilt and pride have on perceived consumer effectiveness and shows how this effect rests on the ability of these emotions to influence perceptions of agency. After experiencing guilt or pride, consumers see themselves as the cause of relevant sustainability outcomes. The process of causal attribution associated with these emotions influences consumers’ use of neutralization techniques. Through the reduction in consumers’ ability to neutralize their sense of personal responsibility, guilt and pride positively influence perceived consumer effectiveness. The inability to rationalize-away their personal responsibility, persuades consumers that they affect sustainability outcomes through their decisions. The research advances our understanding of sustainable consumption and identifies a new avenue for the regulation of individual consumer behavior that has significant implications for the development of sustainable marketing initiatives.