BUS602: Marketing Management

For the purchase phase, we propose two main strategies for reducing environmental impact: (1) consuming differently (e.g., purchasing recycled or second-hand products or clothing made of environmentally friendly materials like organic cotton); and (2) consuming less. These strategies are applicable to each of our five consumer groups in the following ways:

Segment 1 (low consumption - budget brands). This largest consumer segment, which possesses the lowest number of t-shirts and jeans bought primarily from budget brands or second-hand outlets, also has the lowest income and is the least open to alternative business models. Although these consumers' relatively low number of clothing purchases may seem environmentally promising and in line with the most environmentally significant purchasing strategy of lowering overall consumption, this already low consumption may mean that reduction is not the optimal approach to improving this segment's environmental impact. At the same time, the group's consumption of relatively cheap budget brands, although possibly a reflection of a lack of interest in clothing other than for functional necessity, may be related to their low income. Whichever the case, their budget considerations indicate an unwillingness to pay any additional costs to shift from conventional clothing products to more environmentally friendly alternatives. Hence, although consuming differently could be a more promising avenue for this segment, the question remains of how this strategy would be realized. Not only might budget constraints or lack of interest prevent a shift toward more environmentally friendly and potentially more expensive clothing, but, according to our findings, environmentally friendly materials receive little consumer support. In particular, our respondents' reported willingness to pay for more environmentally friendly materials (e.g., recycled or second-hand) is far lower than their willingness to pay for conventional material. It may thus prove difficult to target this major consumer segment for the promotion of behavioral change. Rather, this segment's environmental impact may be more successfully lowered if the strategies of consuming less and consuming differently are successfully combined. For example, reducing consumption by a few clothing items (e.g., a "1-item less" campaign) could potentially free up monetary resources for investment in more environmentally friendly products. Another possible avenue would be to redirect their preferences toward alternative business models by leveraging their existing use of classic alternative acquisition (e.g., second-hand) to counter their comparably low acceptance of novel but low-cost alternatives (e.g., clothing libraries or swap markets). Strengthening second-hand consumption via image campaigns or new online shops to improve user experiences with such clothing acquisition could foster behaviors that meet the segment's needs but are more environmentally friendly. In general, future interventions targeting these consumers should specifically delineate how they could change their behavior in an environmentally friendly direction without undertaking additional costs.

Segment 2 (low consumption - casual/medium). Although Segment 2 consumption is similar to that of Segment 1 in number of items bought in a three-month period, these consumers enjoy a higher income, spend significantly more, and buy more casual/medium priced brands. This segment can thus be more easily targeted with strategies that foster the purchase of clothing made from more environmentally friendly, albeit more expensive, material.

Segment 3 (medium consumption - budget). This group epitomizes the fast fashion consumer, having a comparatively high consumption rate but a strong preference for budget brands, which in this study, include purchases from supermarkets or other cheap vendors not necessarily seen as fast fashion retailers. Segment 3 is of particular relevance to this research, not only because of its general interest in clothing but also because of its expected high impact on the environment. More specifically, consumers who purchase 8.4 relatively inexpensive items during a three-month period for a total of 33 items per year might be a more promising target group for clothing consumption reduction strategies than the previous two groups. With regard to buying differently, these consumers' unwillingness to pay for alternative materials again implies a reluctance to spend more money on higher quality, more environmentally friendly clothing. Given current marketing tools, however, promoting a consuming less strategy would be even more challenging than compensating one product with another (consuming differently), especially given that the question of how much is enough remains controversial. One behavioral change solution offered by social marketing is the "use of marketing principles and techniques to influence a target audience to voluntarily accept, reject, modify, or abandon a behavior for the benefit of individuals, groups, or society as a whole". Hence, one possible social marketing tool for encouraging consumption would be to adopt a consumer viewpoint rather than making consumers feel guilty. From this perspective, understanding the underlying motivation for Segment 3's consumption patterns would assist in the development of effective behavioral interventions. Alternatively, future interventions might emphasize alternative means of clothes acquisition that have an assumed lower environmental impact (e.g., fashion leasing or rental) without restricting the number of items acquired. At present, however, this segment shows little support for either of these alternatives, which would thus need to be promoted.

Segments 4 (medium consumption - casual/medium) and 5 (high consumption - casual/medium and premium). Although Segments 4 and 5 together comprise the smallest group of consumers, both groups are very interesting in terms of composition and reported behavior. Most notably, both reported the highest clothing purchasing rates, indicating that each spends significantly more on clothing than the other three segments. Nonetheless, Segment 5 differs from Segment 4 in spending distinctly more and buying more premium brands. Interestingly, however, both segments reported purchasing clothing in the most environmentally friendly manner. Given the two groups' behavior patterns and monetary resources, both consuming less and consuming differently could be relevant strategies for these groups. That is, even though the large quantity purchased is the direct opposite of environmental friendliness, both segments exhibit environmental traits such as assigning the highest monetary value to jeans made of recycled and second-hand material and engaging in more consumption of environmental apparel. Even if this latter is due to an increased interest in clothing in general, it could be a promising starting point for introducing the strategies for more environmentally friendly clothing consumption to both segments. Respondents from these groups also reported the highest use of and support for alternative business models like fashion libraries and fashion rental. These tendencies are also promising for pushing Segments 4 and 5 toward more environmentally friendly consumption alternatives without necessarily compromising the quantity purchased. At the same time, raising both segments' awareness about consuming less remains of utmost importance because reducing consumption in these groups would result in a more substantial lowering of environmental impact per consumer than in any other segment. Nonetheless, because promoting behavior change is a balancing act between identifying the meaningful behavior to be changed and the meaningful target group, any strategy needs to take into account that Segments 4 and 5 are very small (6.8% and 2.5%, respectively), which might reduce the penetration of any behavioral intervention.