Sustainable initiatives in the luxury industry

Abstract

Purpose – The goal of this study is (a) to examine how sustainable initiatives influence perceptions about luxury brands and products and (b) to assess the relative effectiveness of different types of initiatives.Design / Methodology – We employed an experimental approach and examined the data using quantitative analysis. The study evaluated if and how customers' willingness to pay for sustainable items varied across different types of sustainable initiatives, after being randomly exposed to one of five scenarios.Findings – The results of the study suggest that sustainable initiatives vary widely in their effectiveness, none of the conditions affected the consumers’ willingness to pay, except for the condition involving recycled materials from other luxury ateliers in which participants indicated a higher willingness to pay.Research limitations – This study was based on a hypothetical scenario, so participants were not spending their own money. Further, since the luxury brand chosen in the experiment is well known, it may have resulted in a ceiling effect in participants' judgments. Then, we were unable to document, when the use of recycled material from other luxury brands have a positive effect, why it occurs in the first place. Practical Implications – This study can assist brands more successfully promote sustainable practices in the luxury industry. Furthermore, this work helps to improve knowledge of how people view recycled products and may help to reduce future demand for virgin materials.

Date of Award	20 Oct 2022
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Yan Vieites (Supervisor)