THE LOYALTY DIVIDEND OF GOING GREEN : A STUDY TO UNDERSTAND CONSUMER RESPONSES TO SUSTAINABLE BRAND EXTENSIONS

Abstract

The fashion industry, a major consumer force and the world's second-biggest polluter, grapples heavily with sustainability. Fast fashion, the dominant model, thrives on rapid trend response and low prices, fueling high consumption and short product lifespans. However, a growing eco conscious consumer base is pushing these brands to integrate sustainability into their offerings. Green branding, achieved through green brand extensions (GBEs), is a popular strategy. GBEs leverage existing brand recognition for new, eco-friendly products. These extensions fall into two categories: green line extensions (GLEs) and green category extensions (GCEs). The Loyalty Dividend of Going Green: Understanding Consumer Response to Sustainable Brand Extensions” is the subject of a major research project that investigates consumer perceptions of sustainable clothing lines offered by fast-fashion retailers such as Zudio and H&M. The study probably looks into how aware consumers are of sustainability initiatives and how that information affects how they see the company's new sustainable line. The purpose of the questionnaire was to gauge respondents' opinions regarding a range of statements related to characteristics such as sustainability awareness, existing sentiments (loyalty, brand image) toward Zudio and H&M, and sustainability claims. The purpose of the report is to see if there are any significant correlations among the many factors that have been examined. The report also aids in our comprehension of the degree to which the relationship between the variables may be explained. The impact of a consumer's preexisting brand perceptions—whether favorable or unfavorable—on how they perceive the sustainable line has been examined by the researchers. In order to effectively sell their sustainable clothing lines, these fast-fashion businesses may want to consider leveraging their current brand image, as suggested by the study's conclusion. We have determined the degree of interrelatedness between the numerous factors under discussion by correlation. Out of the three dependent variables, productivity and adapting to hybrid work have the strongest link, whereas engagement has the lowest. The study evaluated fast fashion consumers' views and behaviors toward the four specified sustainable marketing strategies—Climate Compensation, Recycle for Reward, Recycled Materials, and Sustainability Labels—using a quantitative research methodology. The collected data is then examined using four regression techniques to search for possible correlations. The results show that, when it comes to sustainability labels, there is a considerable correlation between how customers perceive a plan and the actions they do in relation to it. This implies that marketers must exert effort to raise awareness of their sustainable brands. If they can convince consumers that the products with labels are indeed sustainable, more people will purchase them. Furthermore, the results show that consumers think recycled materials are the most environmentally friendly kind of advertising.