Enhancing Fast Fashion Brands Through

Environmentally Sustainable Efforts

An explorative study on Generation Z’s perceptions towards circular economy
initiatives and its impact on Customer-Based Brand Equity

Linnéa Blomberg
Julia Furman

Business and Economics, master's level

2021

Luleå University of Technology

Department of Social Sciences, Technology and Arts
ACKNOWLEDGEMENTS
This master thesis is the final part of our master’s degree in Business and Economics with
specialization in Marketing at Luleå University of Technology. Therefore, we would like to
express our gratitude to everyone who has been involved in the development of this study.

Firstly, a sincere thanks to our supervisor Jeandri Robertson who has provided us with truly
valuable feedback and supported us throughout the process. Also, we would like to thank all the
interviewees for taking their time and providing us with valuable input that enabled the creation
of this thesis. Lastly, we thank our opponents and course members for their support and valuable
advice to our report during the journey.

Luleå, 14 June 2021

Linnéa Blomberg Julia Furman

ABSTRACT
Purpose – The purpose of this study is to explore how environmentally sustainable efforts, in
terms of circular economy (CE) initiatives, are affecting the customer-based brand equity (CBBE)
of fast fashion brands. By considering the attitudes of Generation Z, fashion companies can build
brands that respond to the environmental requirements of future decision-makers. Therefore, the
following research questions are derived: What are Generation Z’s self-disclosed perceptions of
fast fashion brands conducting circular economy initiatives? and How do the perceptions of
Generation Z regarding circular economy initiatives impact the CBBE of fast fashion brands?

Method – This master thesis is an exploratory study with an inductive approach. In total, 12
qualitative interviews are conducted, consisting of consumers of fast fashion within Generation Z
and currently living in Sweden. The interviews follow a semi-structured approach and in order to
analyze the empirical findings, a thematic analysis was executed.

Findings – The main findings of this study consist of three overarching themes in terms of
Generation Z’s perceptions towards fast fashion brands conducting CE initiatives and its impact
on CBBE. The emerging perceptions describe different segments within Generation Z, which have
been defined as Positive: Creates Value, Negative: Hypocritical, and Indifferent: Not relevant.
Moreover, the results show that a positive perception towards CE initiatives can strengthen the
CBBE of fast fashion brands. In contrast, a negative perception causes a small impact on CBBE
and may even weaken the brand, whereas an indifferent perception towards CE initiatives has no
noticeable impact on the CBBE.

Theoretical and practical contributions – The study provides insights into Generation Z's
different perceptions regarding CE initiatives and how macro-environmental factors can impact
the brand equity of fast fashion brands, and consumer perception of these brands. The main
findings can assist brand managers to address the different consumer segments and their needs by
successfully implementing sustainability activities into business operations of fast fashion brands.

Keywords – Circular Economy; Brand Equity; CBBE model; Fast Fashion; Generation Z
SAMMANFATTNING
Syfte – Syftet med studien är att utforska hur ekologiskt hållbara insatser i form av cirkulära
initiativ påverkar kundbaserat varumärkeskapital av fast fashion varumärken. Genom att beakta
Generation Zs attityder kan företag bygga varumärken som svarar på de framtida beslutsfattarnas
hållbarhetskrav. Forskningsfrågorna är därför följande: Vad är Generation Zs självupplevda
uppfattning av fast fashion varumärken som utför cirkulära initiativ? samt Hur påverkar
Generation Zs uppfattning om cirkulär ekonomi fast fashion varumärkens kundbaserade
varumärkeskapital?

Metod – Denna uppsats är en utforskande studie med en induktiv forskningsansats. Totalt har 12
intervjuer genomförts där respondenterna består av konsumenter av fast fashion som tillhör
Generation Z och bor i Sverige. Semistrukturerade intervjuer genomfördes och den insamlande
data undersöktes genom en tematisk analys.

Resultat – De viktigaste resultaten består av tre huvudteman i form av uppfattningar och dess
inverkan på kundbaserat varumärkeskapital hos fast fashion varumärken som genomför cirkulära
initiativ. Uppfattningarna skildrar olika segment inom Generation Z, vilka har definierats till
Positiv: Värdeskapande, Negativ: Skenhelig samt Indifferent: Inte relevant och har olika inverkan
på kundbaserat varumärkeskapital. Dessutom visar studiens resultat att en positiv uppfattning
gentemot cirkulära initiativ kan stärka varumärkeskapitalet för fast fashion varumärken. En
negativ uppfattning har en begränsad till negativ inverkan, medan en indifferent uppfattning av
cirkulära initiativ inte har någon märkbar inverkan på det kundbaserade varumärkeskapitalet.

Teoretiska och praktiska bidrag – Denna studie ger insikter om Generation Zs olika
uppfattningar gentemot cirkulära initiativ och hur makromiljö-faktorer kan ge inverkan på det
kundbaserade varumärkeskapitalet hos fast fashion varumärken. Studiens resultat kan vägleda
varumärkeschefer att adressera de olika segmentens behov och framgångsrikt implementera
hållbarhetsaktiviteter i verksamheten hos fast fashion varumärken.

Nyckelord – Cirkulär ekonomi; Varumärkeskapital; CBBE modellen; Fast fashion; Generation Z

TABLE OF CONTENT
1. INTRODUCTION..................................................................................................................... 1

1.1 Background ........................................................................................................................... 1

1.2 Problem Discussion ............................................................................................................... 3
1.3 Purpose .................................................................................................................................. 5
1.4 Delimitations ......................................................................................................................... 5
2. LITERATURE REVIEW ........................................................................................................ 6

2.1 Circular Economy ................................................................................................................. 6

2.1.1 Circular Economy Within Fast Fashion Industries......................................................... 8
2.1.2 Younger Consumers’ Perceptions Towards Circular Economy ................................... 10
2.1.3 Challenges Posed by the Circular Economy................................................................. 11
2.2 Brand Equity ....................................................................................................................... 12
2.2.1 Customer-Based Brand Equity ..................................................................................... 13
2.2.2 CBBE Model ................................................................................................................ 14
2.2.3 CBBE Model in the Fashion Context ........................................................................... 17
2.3 Frame of Reference ............................................................................................................. 18
3. METHODOLOGY ................................................................................................................. 22

3.1 Research Purpose ................................................................................................................ 22

3.2 Research Approach ............................................................................................................. 23
3.3 Research Strategy ................................................................................................................ 23
3.4 Data Collection .................................................................................................................... 25
3.5 Sample Selection ................................................................................................................. 26
3.6 Data Analysis ...................................................................................................................... 27
3.7 Quality Standards ................................................................................................................ 30
3.7.1 Reliability ..................................................................................................................... 30
3.7.2 Validity ......................................................................................................................... 32
4. ANALYSIS AND FINDINGS ................................................................................................ 33

4.1 Perceptions Towards CE Initiatives .................................................................................... 33

4.1.1 Positive Perception: Creates Value............................................................................... 34
 4.1.2 Negative Perception: Hypocritical................................................................................ 36
4.1.3 Indifferent perception: Not relevant ............................................................................. 40
4.2 The Perceptions’ Impact on CBBE ..................................................................................... 42
4.2.1 Positive Perceptions’ Impact on the CBBE .................................................................. 42
4.2.2 Negative Perceptions’ Impact on the CBBE ................................................................ 44
4.2.3 Indifferent Perceptions’ Impact on the CBBE .............................................................. 47
4.3 Summary of the Findings .................................................................................................... 50
5. DISCUSSION .......................................................................................................................... 51

5.1 Discussion and Conclusions ................................................................................................ 51

5.2 Theoretical Contributions .................................................................................................... 54
5.3 Practical Contributions ....................................................................................................... 55
5.4 Limitations .......................................................................................................................... 56
5.5 Future Research ................................................................................................................... 57
REFERENCES............................................................................................................................ 58

APPENDIX .................................................................................................................................. 66
LIST OF FIGURES
Figure 1. The concept of 3R principle ............................................................................................ 7
Figure 2. Fashion brands’ take back strategies ............................................................................... 9
Figure 3. Customer-Based Brand Equity Model........................................................................... 15
Figure 4. Thematic map of the perceptions towards CE initiatives .............................................. 33
Figure 5. Thematic map of positive perceptions’ impact on CBBE components ......................... 42
Figure 6. Thematic map of negative perceptions’ impact on CBBE components ........................ 45
Figure 7. Thematic map of indifferent perceptions’ impact on CBBE components .................... 47
Figure 8. Characteristics of the segments and the impact on CBBE ............................................ 50

LIST OF TABLES
Table 1. Frame of Reference ......................................................................................................... 20
Table 2. Relevant Situations for Different Research Strategies ................................................... 24
Table 3. Interview Respondents .................................................................................................... 27
Table 4. Overarching Theme 1 ..................................................................................................... 34
Table 5. Overarching Theme 2 ..................................................................................................... 37
Table 6. Overarching Theme 3 ..................................................................................................... 40
1. INTRODUCTION
This chapter will introduce the foundation of this study’s research area. The chapter contains a
problem discussion, followed by the purpose of the study along with the research questions. Lastly,
the chapter ends with a presentation of the delimitations of the study.

1.1 Background
Fashion encourages creativity and helps people to express themselves through clothing. However,
with rapidly shifting trends that fast fashion companies respond to by frequently updating available
attires in the stores, the lifetime of clothes has decreased (Zamani et al., 2017). According to Zarley
et al. (2013), the phrase fast fashion refers to “a business strategy that creates an efficient supply
chain in order to produce fashionable merchandise rapidly while quickly responding to consumer
demand” (p. 141). Fast fashion companies, such as ZARA and H&M provide cheap and trendy
clothes that are manufactured at low cost, mostly preferred by middle-class consumers (Jang et al.,
2012). The traditional production process of fashion requires high levels of energy and water
consumption and emits large quantities of chemicals (Lo et al., 2012; Machado et al., 2019;
Vehmas et al., 2018). These chemicals are drivers of large-scale environmental pollution (Zamani
et al., 2017). Tackling this issue requires strong management from higher authorities in all parts
of the fashion industry to enable brands to implement more sustainable actions (Frei et al., 2020).

In 2015, all United Nations Members established the 2030 agenda for sustainable development,
including the 17 Sustainable Development Goals (United Nations, n.d.a). Linked to the fashion
industry, Frei et al. (2020) underline the importance of Goal 12, to ensure sustainable consumption
and production. One of the underpinned defined targets to the goal is to substantially reduce waste
generation through prevention, reduction, recycling and reusing by 2030 (United Nations, n.d.b).
To achieve sustainable consumption and production in nine years, the 2020s needs to bring a
decade of ambitious sustainable actions where fashion brands and consumers must contribute to
realize the agenda for sustainable development.

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To fulfill the 12th goal, a suggested approach is to expand the circular processes (United Nations,
n.d.). The concept of circular economy (CE) embraces circular practices, which can be applied to
the fashion industry. In a CE, fashion consumption slows down and encourages the extended
lifetime of clothes (Pal et al., 2019). In a CE, the negative environmental impact reduces, wastage
is avoided, and products are redesigned, reused, and recycled to close the loop of the supply chain
(Frei et al., 2020; Vehmas et al., 2018). Manufacturers and retailers are required to promote
practices that inspire customers to extend the product life cycle of clothes (Shrivastava et al., 2021).
Furthermore, the shift towards CE also requires a change in the mentality of the customers.
Individuals need to consider newly produced products equally as remanufactured ones in the
journey towards a more sustainable fashion industry (Frei et al., 2020).

There has been a growing positive attitude towards sustainable fashion among consumers over the
last years (Hur & Cassidy, 2019). Hur and Cassidy (2019) state that consumers who are aware of
the fashion industry's negative environmental impact are even more willing to change their buying
behavior. Therefore, the ability to identify and respond to new market trends is an important
organisational capability for fashion companies in to survive and succeed (Pedersen et al., 2018).
The shift in attitudes requires that brands in the fashion industry must adopt strategies that respond
to the consumers' changed needs in order to be an attractive brand with competitive advantages
(Mithas et al., 2005). To create competitive advantages, Christodoulides and Chernatony (2010)
highlight the value of brands and the importance of consumers' perceptions of the intangible asset.
In order to know how consumers perceive a fashion brand, the concept of brand equity can be
used. Brand equity refers to the brand value and is determined by the attributes of a brand and the
customers' perceived benefits that they receive when supporting the brand (Chen, 2010).
Companies with high brand equity have the capability to increase their prices since the customers'
willingness to pay increases due to the attractiveness of the name attached to the product (Chen,
2010; Keller, 1993).

A number of studies underline the importance of building strong brand equity (Aaker, 1996;
Keller, 1993). Extant research agrees that the competition is intense and therefore it is necessary
to differentiate a brand from its competitors. To analyze brand equity from the perspective of the
individual consumer, the conceptual model customer-based brand equity (CBBE) is commonly

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used in multiple industries (Keller, 1993). However, despite the considerable number of studies
regarding brand equity, there is limited research on how the concept is interlinked with the
perceptions towards CE initiatives, especially within the fast fashion industry. This gap in theory
will be further described in the problem discussion below, especially emphasizing how CE
initiatives can be used to strengthen the CBBE of fast fashion brands.

1.2 Problem Discussion

The consumption of fashion has constantly been increasing across the world. In the US alone, 15.1
million tons of textiles were discarded in 2013 compared to 7.4 million tons in 1995 and 2.5 million
tons in 1980 (Iran & Schrader, 2017). According to Shrivastava et al. (2021), the fashion industry
is responsible for generating ten percent of the global emissions, which makes them one of the
largest polluters in the world. Shrivastava et al. (2021) explain that the negative trend of
consumption in a combination of manufacturers that delivers new attires within short lead times
has caused this situation. Due to the negative environmental impact, the need for sustainability
initiatives is urgent to set future green directions for fashion brands (Jang et al., 2012). The fashion
industry has been in the spotlight over the last few decades, criticized by the media for poor social
and environmental performance (Pedersen et al., 2018). The dilemma around environmental
sustainability has therefore become a key managerial issue in recent years (Caniato et al., 2012).

Despite the unfavorable publicity, the fashion industry has at the same time been “among the
frontrunners when it comes to new sustainability initiatives” (Pedersen et al., 2018, p. 268).
Initiatives to develop new sustainable business models have been introduced by several fashion
companies, such as new resources and new revenue channels. Pedersen et al. (2018) explain that
several fashion brands have initiated programs to take-back, resell, reuse and recycle the retailed
products. These constitute circular economy initiatives that fashion brands have experimented
with, in addition to their possession-based business model. Fashion companies aiming to run the
business more sustainably are standing in front of a foundational change in their business model
(Pedersen et al., 2018). The purpose of fast fashion is to rapidly respond to the latest fashion trends,
which do not agree with the processes of CE initiatives (Zamani et al., 2017). The transition
involves a movement from a traditional single financial bottom-line with focus on making money,

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to a more sustainable model with focus on creating economic, social and environmental value for
all relevant stakeholders (Joyce et al., 2016).

In contrast to the emerging environmental consciousness, some resistance to the CE transition has
arisen from companies in the fashion industry (Frei et al., 2020). The companies are fearing new
initiatives such as secondary markets will outcompete the first markets when consumers are buying
resold and remanufactured products rather than new ones. Frei et al. (2020) point out that
companies have even tried to eliminate the secondary markets. However, Frei et al. (2020)
underline these actions have been severely criticized in the media. What the companies tend to
forget is that “the cost of refreshing and reselling a product can be considerably lower than the cost
of making a new product from new materials” (Frei et al., 2020, p. 1927). As a result of the
increasing environmental consciousness, more consumers are willing to pay a higher price for
environmentally sustainable products (Chen, 2010). Thereby, companies that succeed in building
brand equity can benefit from the competitive advantage, enabling them to sell at higher prices
with higher profit margins (Chen, 2010; Keller, 1993).

One of the emerging trends that the fashion industry has to have an eye on, is the “woke” consumer
(Amed et al., 2019). According to the 2020s trend report conducted by McKinsey (Amed et al.,
2019), younger consumers are severely concerned with social and environmental-related issues.
The consumer group prefers brands that are in line with their values and refrains from brands that
are not. When it comes to companies and their responsibilities, nine out of ten consumers within
Generation Z (born circa 1995-2014) believe the companies should address the issues related to
social and environmental causes (Amed et al., 2019). Fashion companies overlooking this trend
shift are taking remarkable risks, as Generation Z was expected to make up 40 percent of the global
consumers by 2020 (Amed et al., 2019). This generation is therefore of high interest to study, as
they are the future decision-makers and sets the rules for future consumption of fast fashion.
Additionally, Generation Z is also interesting from a consumer perspective since younger
consumers are the most eager group of fast fashion consumers (Morgan & Birtwistle, 2009).

The fast fashion industry is facing a challenge of balancing between environmental- and business
needs (Caniato et al., 2012). An interest in integrating corporate sustainability into conventional

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business model thinking has emerged in recent years (Pedersen et al., 2018). The industry is
demanding solutions for how to run the business in a more environmentally sustainable way,
without compromising economical sustainability (Joyce et al., 2016). Giving these points, one way
to succeed is to invest in strengthening brand equity. Thus, the fast fashion brands will be able to
raise the prices for a branded product and create a more solid economical foundation (Farquhar,
1989). Although it may be counterintuitive to the purpose of fast fashion, which is cheap and
mainly mass-produced garments, it can marginally improve the financial situation. This implies
that fast fashion brands must obtain tools to know how to build, strengthen and constantly develop
their brand equity. Jung and Sung (2008) explain that there are many studies on brand equity
related to a wide range of industries. However, there is still limited research on how
environmentally sustainable efforts can contribute to strengthening brand equity, at least in the
context of the fast fashion industry (Jung & Sung, 2008). In sum, there is a lack of literature that
integrates these areas and especially focusing on Generation Z, which constitutes a clear gap that
this study aims to fill.

1.3 Purpose
The purpose of this study is to explore how environmentally sustainable efforts, in terms of CE
initiatives, are affecting the CBBE of fast fashion brands. In order to fulfill the formulated purpose,
the following two research questions are defined:

RQ1: What are Generation Z’s self-disclosed perceptions of fast fashion brands
conducting circular economy initiatives?
RQ2: How do the perceptions of Generation Z regarding circular economy initiatives
impact the CBBE of fast fashion brands?

1.4 Delimitations
This study revolves around the fast fashion industry and is delimited to CE initiatives that distinctly
promote reducing the emissions and usage of resources, reusing products, and recycling waste
materials. Furthermore, the study takes the perceptions of Generation Z into consideration,
meaning that only fast fashion consumers born in 1994-2002 are included. Additionally, the study
is delimited to consumers within Generation Z that currently live in Sweden.

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2. LITERATURE REVIEW
This chapter contains an overview of the literature within the research area of circular economy,
fast fashion and brand equity. It holds a description of the concepts and how they are related to
the fashion industry in general, and fast fashion brands in particular.

2.1 Circular Economy

To reach the 17 Sustainable Development Goals by 2030, industries have called for guidance in
implementing strategies for sustainable improvements (Murray et al., 2017). To address the
environmental issues the world is facing in the coming years, Murray et al. (2017) highlight the
positive contribution the CE will possess. CE represents a new way to act in industrial systems of
production where restoration of resources and regenerated materials replaces the traditional
systems that harm the environment (Smith et al., 2017). By reusing products and materials in an
economically viable way and replacing the “end-of-life” idea through recycling materials in
production and consumption processes, CE opens possibilities for a more sustainable closed-loop
system (Machado et al., 2019). The CE concept has received attention from multinational
companies as well as policy makers in industrialized countries because it is viewed as an important
approach to achieving sustainable, environmental and economic development (Korhonen et al.,
2018; Schroeder et al., 2019). To successfully transit to a CE, Hazen et al. (2017) claim that
cooperation and coordination across governments, business and consumers are necessary. Multiple
definitions have arisen over the last ten years regarding the concept of CE (Korhonen et al., 2018;
Machado et al., 2019; Murray et al., 2017). Murray et al. (2017) define CE as:

An economic model wherein planning, resourcing, procurement, production and reprocessing are
designed and managed, as both process and output, to maximize ecosystem functioning and
human well-being (p. 25).

Moreover, Blomsma and Brennan (2017), describe the concept of CE as “A general term covering
all activities that reduce, reuse, and recycle materials in production, distribution, and consumption
processes” (p. 606). The term therefore holds different meanings by different authors. Yet, the
definitions always have one thing in common; a cyclical closed loop system (Murrat et al., 2017).
To provide clarity regarding the concept of CE, Kirchherr et al. (2017) gathered an extensive set

6
of over hundred CE definitions and analyzed them against a coding framework. After analysis,
Kirchherr et al. (2017) developed a definition of CE:

An economic system that replaces the end-of-life concept with reducing, alternatively reusing,
recycling and recovering materials in production/distribution and consumption processes. It
operates at the micro level (products, companies, consumers), meso level (eco-industrial parks)
and macro level (city, region, nation and beyond), with the aim to accomplish sustainable
development, which implies creating environmental quality, economic prosperity and social
equity, to the benefit of current and future generations (p. 224).

The central practices of CE are based on the 3R principle, standing for reducing, reusing, and
recycling. The principles focus on the circulation of materials and maximizing their use and
simultaneously minimizing waste and pollution (Ranta et al., 2018; Patwa et al., 2021). The reduce
principle mainly focuses on reducing the use of resources and energy during the manufacturing
stages along with reducing emission and waste during the using stages. The reuse principle refers
to extending the product to a new life cycle by reusing products as a whole or their components.
Lastly, recycling involves transforming waste materials into new materials and products, both for
its original purpose or new intentions (Jawahir & Bradley, 2016; Ranta et al., 2017). The concept
of 3R principle is presented in Figure 1.

Figure 1. The concept of 3R principle

Source: Authors own construct

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Several studies highlight the extended life of products when implementing CE practices (Frei et
al., 2020; Machado et al., 2019; Ranta et al., 2018). However, worth noting when executing CE
activities is that manufacturers are not required to provide local repair services in all corners or
demand consumers to return the products to the manufacturer for repairs (Frei et al., 2020). Further,
Frei et al. (2020) suggest manufacturers endorse a network of repair shops that opens opportunities
to execute sustainable, economically, and convenient repair offerings to consumers.

2.1.1 Circular Economy Within Fast Fashion Industries

The fast fashion industry consumes considerable amounts of natural resources to produce low-
price clothes which are worn by consumers for a short time and afterwards discarded (Brydges,
2021). To address the material waste, Hvass and Pedersen (2019) exemplify in their study that 62
percent of Swedes discard clothes in the garbage because they don't want to use them, and 21
percent of the Swedes dispose of their clothes because they are tired of them. Furthermore, the
material waste is one of the biggest challenges of CE within the fashion industry due to the
increasing quantity of discarded and incinerated textiles ending up in landfills (Hvass & Pedersen,
2019). To reduce the development of climate change, sustainable consumption and production are
important elements in retaining the world's limited natural resources (Vehmas et al., 2018). Since
the textile industry claims to be one of the most polluted industries (Vehmans et al., 2018),
conversations about CE and how to make the fashion industry more sustainable have dominated
among policymakers and academics (Brydges, 2021).

A keyway forward in the transition to a more sustainable fashion industry is adapting CE practices
(Brygdes, 2021; Machado et al., 2019). This transition includes replacing the fast fashion of trendy,
low-cost clothing, into restorative thinking that aims to streamline the use of resources along with
minimizing waste (Brydges, 2021). According to Smith et al. (2017) there is an increasing
awareness of the requirement for new textile initiatives that can be linked with the concept of CE.
Waste management strategies that focus on the 3R principle of CE have become a well-known
approach to responding to the textile industry waste (Hvass & Pedersen, 2019). There are several
studies explaining how fashion brands are working toward reducing textile disposal. Hvass and
Pedersen (2019) describes examples of brands working with decreased production volumes and
extending clothes life by introducing better care practices to build a long-lasting relationship with

8
their clothes. Weber et al. (2017) claim that many retailers have begun offering take-back programs
that offer consumers to return clothes which are no longer considered useful.

In order to implement principles that aim to achieve a focused CE, Hvass and Pedersen (2019)
present a model with an overview of fashion brands’ take-back strategies. An overview of these
end-of-life-strategies can be seen in Figure 2 below. Hvass and Pedersen (2019) examine two main
CE strategies that link product-specific and material-specific resource loops. The product-specific
loop concentrates on reuse and extending products life and the material-specific loop focuses on
recycling of materials. Furthermore, Hvass and Pedersen (2019) illustrate the most common
activities to implement take-back programs; independent in-store collection, partnership with a
charity, or partnership with a professional collector/service provider. Next, the activities develop
operationally differently based on which CE-specific loop the take-back program concern (Hvass
& Pedersen, 2019).

Figure 2. Fashion brands’ take back strategies

Source: Adopted from Hvass & Pedersen (2019)

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Stål and Corvellec (2018) conducted a study of Swedish apparel companies that were collecting
used clothes as a form of take-back-program aiming toward circular business models. The study
showed that financial incentives, in forms of vouchers or discounts, were commonly used by
brands to reward the consumers. Furthermore, evidence showed that fashion companies'
motivation for conducting waste-related CE activities were based on strengthening brand image,
creating customer loyalty and simultaneously reducing the environmental impact. This implies that
fashion brands are implementing the 3R principles not only for environmental reasons, but also to
improve its brand image as a responsible business and for financial reasons (Stål & Corvellec,
2018).

2.1.2 Younger Consumers’ Perceptions Towards Circular Economy

Sustainable fashion business models that focus on reducing resource use and waste have
consumers as primary partners and suppliers (Machado et al., 2019). According to Sijtsema et al.
(2020) “consumers have roles in a CE as purchasers, maintainers, repairers, sellers, sharers,
collaborators, and waste discarders” (p. 1). Thus, in the context of CE, it is meaningful to
understand their perceptions and what factors affect them towards sustainable fashion
consumption. Thereby it is easier to find possible entry points to stimulate consumers interest and
involvement in fashion businesses (Sijtsema et al., 2020). Moreover, the interest in sustainable
products and ethical behavior have risen among younger consumers, in particular Millennials and
Generation Z (Kim et al., 2021). According to Kim et al. (2021), younger consumers are willing
to pay an additional 10 percent on green, ethical, durable and repairable products. However, to
successfully meet the consumers' needs, fashion brands are required to investigate their
perceptions towards circular fashion.

Several studies show multiple factors that have an impact on consumers' perceptions and
behaviors. Camacho-Otero et al. (2018) explain that consumers' acceptance is influencing the
perceptions towards CE. The authors describe that personality traits, values, and ideologies, in
turn, are influencing consumer perceptions. In line with Camacho-Otero et al. (2018), Kim et al.
(2021) agree and further describes that consumers' attitudes regarding sustainable products are
affected positively by emotional values such as feeling joy and pleasure when purchasing.
Furthermore, Kim et al. (2021) presented that customer consider it risky to buy second hand or

10
recycled clothes made of discarded materials. The circular clothes were not considered to be
hygienic and thereby, negatively influenced their perceptions (Kim et al., 2021). Therefore, it is
important apparel brands underline the benefaction deed the consumers contribute to when
purchasing circular fashion. Moreover, to reduce the consumers perceived hygiene risk, Kim et al.
(2021) suggest marketers emphasize that the clothes have gone through cleaning processes when
extending the products to new life cycles.

Chang and Watchravesringkan (2018) explain that money and environmental knowledge are
important factors affecting the perceptions towards sustainable consumption. Consumers who
consider being environmentally oriented perceive sustainable fashion positively. Moreover, the
authors claim that clothes made from recycled materials are generally associated with higher
prices. Therefore, it is important to encourage consumers to perceive more value in the products
compared to their actual price (Chang & Watchravesringkan, 2018). Thus, the perception and
attitudes towards CE initiatives can be strengthened.

2.1.3 Challenges Posed by the Circular Economy

The transition from business models based on the “End-of-life” idea into CE's central practices of
reduce, reuse and recycling, raises not only opportunities, but also challenges for the fast fashion
industry. Several studies stress the implementation process of CE to be challenging (Brydges,
2021; Camacho-Otero et al., 2018; Sauvé et al., 2016). Further, Sauvé et al. (2016) specifically
underline the novelty and complexity CE entails. It is stated that economic benefits must be
generated when implementing CE activities that closes the loop and products are reintegrated into
take-back programs (Sauve et al., 2016). However, this can be challenging because the costs to
manufacture sustainable long-lasting products is generally higher than producing disposable
versions (Sauvé et al., 2016). Brydges (2021) found that fast fashion brands experienced it
challenging toward designing for circularity. Fast fashion brands characteristically produce trend-
driven, low-price clothes at short lead-times to the customers. Moving beyond those practices into
designing seasonless collections that appeal to the consumers and inspire them to extend the
lifetime of clothes is a difficulty, especially for the consumers that consider style more important
than sustainability (Brydges, 2021). These findings are in line with the ones proposed by

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Shrivastava et al. (2021) who add that individual fashion goals and price-consciousness take
priority over environmental consciousness which is another aspect that needs to be reviewed.

Since clothes are a part of human life, implementation activities of CE can bring several changes
to everyday life (Camacho-Otero et al., 2018). With references to such changes, consumer
acceptance has been highlighted as a substantial aspect hindering the 3R strategies of CE to reduce,
reuse and recycle (Frei et al., 2020). Acceptance to transit and chance consumers mentality and
consumption behavior where ownership of newly produced clothes is associated with prestige
(Frei et al., 2020; Hvass & Pedersen, 2019; Shrivastava et al., 2021). Moreover, Shrivastava et al.
(2021) specify that consumers experience a social barrier talking about shopping experiences
regarding second hand, because it is not equally socially accepted as buying new clothes.

To succeed with the implementation and communication of CE activities in the fast fashion
industry, several studies highlight information transparency as a mean to avoid being associated
with greenwashing (Aakko & Koskennurmi-Sivonen, 2013; Niinimäki, 2015). The rising interest
in environmental and sustainability issues has induced companies to start using this as a selling
point to increase sales, which consumers at times can perceive as a “marketing-ploy” (Niinimäki,
2015). The term greenwashing refers to brands that spend sizable money on convincing the
consumers to be eco-friendly by greenwashing products to look more sustainable than they actually
are (Aakko & Koskennurmi-Sivonen, 2013). The global manufacturing processes in the fashion
industry are complex. Therefore, it is necessary to present a complete picture of information
throughout the entire value chain to avoid misleading labels and “greenwash”-attitudes from the
consumers (Niinimäki, 2015). Further, Niinimäki (2015) clarifies that the sustainability efforts that
fashion companies are conducting should be communicated with a holistic and transparent
approach to send positive messages to the consumers and thereby build trust.

2.2 Brand Equity

The concept of brand equity has been debated by researchers and there is no consensus on the
definition in the literature (Buil et al., 2013; Su & Chang, 2018). Farquhar (1989) defines brand
equity as the “added value” that a given brand provides a product. In contrast, Simon and Sullivan
(1993) define it from a financial perspective, considering brand equity as the increased cash flows

12
that branded products provide over unbranded products. Atilgan et al. (2005) have discussed the
different perspectives of brand equity; it can be viewed from the perspective of the manufacturer,
the retailer, or the consumer. According to Atilgan et al. (2005), marketing practitioners often refer
to brand description or brand strength, from the customer perspective, when using the term “brand
equity”. This is in line with Farquhar (1989), who states that brand equity, from the perspective of
an individual consumer, reflects the increase in attitude strength towards a product using the brand.
The consumer-originated perspective on brand equity is referred to as customer-based brand equity
(CBBE), stated by Farquhar (1989).

2.2.1 Customer-Based Brand Equity

Researchers have argued in favor of the consumer-based perspective (Su & Chang, 2018). If the
brand has no value to the consumer, none of the other perspectives or definitions are relevant
(Atilgan et al., 2005; Keller, 1993). Consequently, the authority of the brand is derived from the
customer's experiences of the brand; what the consumers have learned, seen, heard, and felt about
the brand over time (Keller, 2003). Therefore, Keller (2003) defines CBBE as “the differential
effect that brand knowledge has on consumer response to the marketing of that brand” (Keller,
2003, p. 60). By contrast, Aaker (1991), viewed CBBE as “a set of brand assets and liabilities
linked to a brand, its name and symbol, that add to or subtract from the value provided by a product
or service to a firm and/or to that firm’s customers” (p.15). Although some time has passed since
the definitions were coined, the definition established by Aaker (1991) is one of the most generally
accepted (Atilgan et al., 2005). Therefore, this study will mainly be based on the definition by
Aaker (1991).

The concept of brand equity can, more in-depth, be explained as the different effects that brand
knowledge has on consumers' response to the marketing of a brand (Keller, 1993). Further, Keller
(1993) argues that if a product or service was retailed without its brand, it would not have the same
value as if it was sold with its brand. Shaping the consumers’ perceptions of a product or service
into a positive experience is the core of brand equity (Farjam & Hongyi, 2015). Three different
perspectives can be applied in order to measure brand equity; a financial, employee, or consumer
perspective (Tsai et al., 2013). As this study aims to capture and measure the consumers’
perceptions, a consumer-based perspective will be applied.

13
2.2.2 CBBE Model
To understand brand equity from a consumer perspective, the CBBE model has become the most
accepted one among academics and practitioners because of the central role the consumer holds
(Farjam & Hongyi, 2015). This is in line with Çifci et al. (2016), who argue that CBBE is essential
for a brand in order to develop customer value, differentiate from other brands, and gain a
competitive advantage in the market. Keller (2013) argues that CBBE is measured by examination
of the customer's thoughts, beliefs, perceptions, images, and emotions linked to a brand. That is
similar to the view of Aaker’s (1996), stating that CBBE can be measured by four dimensions of
brand equity; loyalty, awareness, associations, and perceived quality.

The four dimensions are constituting the CBBE model (Aaker, 1996), which is shown in Figure 3.
The model also includes the dimension of Proprietary brand assets which includes patents and
other assets linked to the brand (Aaker, 1991). However, Lee et al. (2014) argue that there are no
valid measurements and as it is indirectly linked to the customer. Consequently, the component is
not relevant to include in this study. The concepts can be measured by The Brand Equity Ten, a
set of measures linked to each dimension of the CBBE model (Aaker, 1996), that are described in
the following sections. Aaker (1996) explains that two of the measures belong to the concept of
market behavior measures and are not obtained directly from the customers. Therefore, those
measures are not applicable in this study. The concept of Brand loyalty, Brand awareness, Brand
associations, and Perceived quality will be presented separately in the following sections.

14
 Figure 3. Customer-Based Brand Equity Model

Source: Adopted from Aaker (1991)

2.2.2.1 Brand Loyalty

Brand loyalty is the core element of brand equity and can be explained as the customer’s affection
and trust in a brand (Aaker, 1996; Pappu et al., 2005). The concept of brand loyalty means that
customers hold a commitment to rebuy a product or service from the same brand, regardless of
influence from other brands (Oliver, 1997). Consequently, a brand-loyal customer is willing to pay
a higher price for the product in comparison with a non-brand-loyal customer (Yoo et al., 2000).
Researchers are still of different opinions when it comes to the coherence of brand loyalty. Keller
(2003) considers brand equity to be the outcome of brand loyalty. On the contrary, Aaker (1996)
argues that brand equity is the source to brand loyalty. According to Aaker (1996), brand loyalty
can be measured through the customer’s willingness to pay a premium price in comparison with
other equivalent brands as well as through the customer’s satisfaction of a product or service.

15
2.2.2.2 Brand Awareness
Brand awareness is “the ability for a buyer to recognize or recall that a brand is a member of a
particular product category” (Aaker, 1991, p. 61). Further, Aaker (1991) states that brand
awareness is about the brand’s presence in the customer’s minds, meaning that individuals become
aware of, and remember, the brand’s attributes and name. Furthermore, consumers are more likely
to prefer a known brand over an unknown brand in the market (Buil et al., 2013). Therefore, a
brand recognized by the consumer has a higher probability to be purchased than an unknown or
non-branded product. Brand awareness can be measured by the customer’s awareness of a certain
brand and how the brand is perceived to be differentiated from competing brands (Aaker, 1996).

2.2.2.3 Brand Association

Brand association is described as “anything linked in memory to a brand” (Aaker, 1991, p. 109).
Consequently, the customer’s awareness of a brand is the foundation to brand associations (Buil
et al., 2013). The brand association is increasing the probability to remember a brand and its
attributes, which can further impact a customers’ future decisions (Keller, 2003). Moreover, there
are different dimensions of brand associations that all are linked to the overall brand experience.
These are linked to the value (brand-as-product), brand personality (brand-as-person), and
organization associations (brand-as-organization) discussed by Aaker (1996). The strength of
brand associations lies in the ability to create a unique value proposition and a competitive
advantage within the market (Keller, 1993). According to Aaker (1996), brand associations are
measured by the customer’s perception of value, brand personality, and the organizational
associations. The key measurements usually include several image dimensions that are perceived
as unique to a product or brand (Aaker, 1996).

2.2.2.4 Perceived Quality

The perceived quality is one of the key dimensions of brand equity (Aaker, 1996), and is described
as the consumer’s subjective perception of the overall quality of a product or service (Buil et al.,
2013). The concept differs from objective quality since it is related to the production and
manufacturing attributes of a product (Lee at al., 2014; Pappu et al., 2005). However, perceived
quality is about the consumer’s recognition of quality, evaluated by a certain product and its added
value, and attributes (Pappu et al, 2005). Furthermore, perceived quality provides the brand with
an advantage over competing brands, helping to create differentiation of a product to the consumer

16
(Aaker, 1991). The dimension of perceived quality is measured by several factors, including the
customer’s perception of the quality of a certain product and the position in the market compared
to other brands. Aaker (1996) suggests that a scale stretching from inferior quality to high quality
can evaluate the customer’s perception of a brand when compared to alternative brands. By
examining the perception of a brand’s emerging popularity, innovations, and leadership in the
market, the perceived quality can be defined (Aaker, 1996).

2.2.3 CBBE Model in the Fashion Context

With the CBBE-model in mind, Su and Chang (2018) have examined the relationship between
young consumers’ attitudes towards fast fashion brands and brand loyalty. Su and Chang (2018)
highlight the factors leading to success for global fast fashion retailers, which includes
development of a strategic proposition with unique concepts and brand power. In addition, the
proposition includes unique capabilities to achieve a sustainable competitive advantage. Within
the fast fashion industry, companies are able to create an extremely powerful brand based on its
business model of fashion and quality at the best possible price (Su & Chang, 2018). However,
when it comes to creating brand equity, different dimensions contribute to CBBE in different ways.
More specifically, the study showed that for US college students, not all brand equity dimensions
have the same influence in generating consumer loyalty toward a brand. Brand awareness,
perceived value, brand uniqueness, and organizational associations are the contributing
dimensions of brand equity to building consumer brand loyalty (Su & Chang, 2018).

Because of the multifaceted interactions among consumers and fashion brands, Kim (2012) argues
that the fashion-brand experience “may synchronize cognitive processes that are more
subconscious and private in nature with affective processes during which emotions become an
important substrate of consumption” (Kim, 2012, p. 421). Furthermore, if a fashion brand
stimulates the senses, causes the customers to feel good, and engages the resonance behavior,
brand experience makes customers more subject to the most profitable behavioral outcomes, such
as loyalty and price premium (Kim, 2012).

17
2.3 Frame of Reference
The frame of reference aims to bring clarity to the research purpose and questions of the thesis and
is built upon the previous literature presented throughout the chapter. The frame of reference
illustrates how the central elements of the study are connected to each other. The following sections
will address how consumers' perceptions of CE initiatives are interlinked with the CBBE-model
in this study. It has been found in previous literature that the interest in sustainable products and
ethical behavior has increased among younger consumers. However, the scarcely previous
investigation of Generation Z's perceptions towards CE within the fast fashion industry has
resulted in the first part of the emerged frame of reference.

The first elements are related to the first research question (RQ1) of the study: What are
Generation Z’s self-disclosed perceptions of fast fashion brands conducting circular economy
initiatives? To begin with, the interest in sustainable products has arisen among younger
consumers and their willingness to pay for the products is strong (Kim et al., 2021). Moreover, it
has been presented that a consumer can experience both perceived risks and value creation
regarding clothes that fall within the 3R concept. Perceived risks of unhygienic reasons in recycled
clothes are negatively affecting Generation Z's perceptions of CE initiatives (Kim et al., 2021).
Contrariwise, perceived values and environmental knowledge are positively affecting the
perceptions. When younger consumers purchase clothes that are manufactured sustainably, joyful
feelings are evoked when they positively contribute to the climate (Chang & Watchravesringkan.,
2018; Kim et al., 2021). These influential aspects are important to consider in this study as they
create a foundation for understanding the perceptions of Generation Z.

The following part of the frame of reference is concerned with research question two (RQ2): How
do the perceptions of Generation Z regarding circular economy initiatives impact the CBBE of
fast fashion brands? In the frame of reference, the theory on CBBE is recapped, based on the
model originated by Aaker (1991). CBBE includes the essential components: brand loyalty, brand
awareness, brand association, and perceived quality. The model is complemented by the measures
of The Brand Equity Ten, which as previously mentioned are a set of measures linked to each
dimension of the CBBE model. Each component of the CBBE model demonstrates the power of a
customer's attitude towards a brand, and how it can result in the success or failure of a brand

18
(Aaker, 1996). Further, the model emphasizes creating a positive attitude towards a brand, in the
consumer’s mind, can build a strong foundation.

Although researchers have found support for brand awareness, brand associations, and perceived
quality has a positive effect on brand equity, brand loyalty is seen as the core dimension of brand
equity (Buil et al., 2013). In this study, brand loyalty refers to a customer’s affection or trust in a
brand (Aaker, 1996). Further, brand awareness reflects the recognition of a brand in the customer’s
mind while brand association is about the values and personalities associated with a brand within
the mind of a customer. Perceived quality is linked with the consumer’s subjective perception of
the overall quality of a product or service, with reference to other alternatives (Aaker, 1996). Fast
fashion brands need to be aware of the perceptions of young consumers to gain insights into how
these perceptions can impact the CBBE model. To draw the strands together, all the above-
mentioned parts are summarized in a frame of reference that includes all components needed to
answer the research questions. The complete conceptual framework is presented in Table 1.

19
 Table 1. Frame of Reference
Conceptual Area Concept Conceptual Definition
Circular Reduce Reducing the use of
Economy resources and energy during
the manufacturing stages
along with reducing
emission and waste during
the using stages
Reuse Extending the product to a
new life cycle by reusing
products as a whole or their
components
Recycle Transforming waste
materials into new materials
and products, both for its
original purpose or for new
intentions
Customer-Based Brand The attachment that a
Brand Equity Loyalty customer has to a brand
Brand The ability of a potential
Awareness buyer to recognize
or recall that a brand is a
member of a certain product
category
Brand Anything linked to the
Association memory of a brand
20
Operational Definition Source
The consumer’s perception of Frei et al.,
brands reducing the use of 2020
resources and energy during
the manufacturing stages
along with reducing emission
and waste during the using
stages
The consumer’s perception of Frei et al.,
brands extending the product 2020
to a new life cycle by reusing
products as a whole or their
components
The consumer’s perception of Frei et al.,
brands transforming waste 2020
materials into new materials
and products, both for its
original purpose or for new
intentions
Price Premium: The Aaker, 1991,
customer’s willingness to pay p.39; Aaker,
a premium price in 1996; Keller,
comparison with other 2003
equivalent brands
Satisfaction/loyalty: the
customer’s satisfaction of a
product or service
Awareness: The customer’s Aaker, 1991,
awareness of a certain brand p.61; Aaker,
and how the brand is 1996
perceived to be differentiated
from competing brands
Perceived Value: Aaker, 1991,
If the brand brings good value p.109; Aaker,
for the money and if there are 1996
motives to buy this brand
over competing brands
Brand Personality:
Reflects the existence of a
strong personality
(interesting, clear target group
associated with the brand)
Organizational
Associations: How customers
associate the brand (trust,
credibility, high quality etc.)
 Perceived The consumer's judgment Quality: Scale stretching Aaker, 1991,
Quality about a product's from inferior- to high quality p.85; Aaker,
overall excellence or can evaluate the customer’s 1996
superiority perception of a brand
compared to alternative
brands
Leadership: The perception
of a brand’s emerging
popularity and if it’s first with
advances in products or
services

The comprehensive frame of reference is based on the literature regarding consumer’s perception
of CE initiatives and theory on CBBE. Moreover, the framework illustrates how the theory
connects to each research question. The perceptions include opinions and beliefs on CE initiatives
that are held by younger groups consuming fast fashion. Subsequently, the perceptions are
connected to CBBE as this study wants to explore how these perceptions impact the brand equity
of fast fashion brands. The element of CBBE is based on Aaker’s (1991) model and is added to
the model to illustrate the components that contribute to a strong brand based on the consumer’s
perception of it. As Keller (2003) and Aaker (1991) described, the brand is worth nothing if it has
no value to the consumer. Hence, the value that environmentally sustainable actions bring to the
consumer is crucial for fast fashion brands to understand.

21
3. METHODOLOGY
This chapter presents the methodology and research design of the study. The chapter will cover
the research purpose, approach, and strategy with its underlying concepts. Moreover, the
collection of data, sample selection, and analysis of data is thoroughly described. The chapter
concludes with an explanation of how reliability and validity have been taken into account.

3.1 Research Purpose

The research purpose of a study can be determined based on the aim of the research questions. The
classification of a study's purpose can either be exploratory, descriptive, or explanatory (Saunders
et al., 2012). An exploratory study is especially useful if the study aims to gain a deeper
understanding of a problem where there is limited previous research. According to Saunders et al.
(2012), exploratory research tends to have a broad focus where open questions are valuable to
become aware of the overall environment. Exploratory studies seek to answer questions such as
what or how (David & Sutton, 2016). Moreover, as the study progresses and new insights appear,
the exploratory approach allows to shift directions since the purpose is to gain insights during the
development of the study (Saunders et al., 2012).

Descriptive studies are used to provide an accurate profile of happenings, situations, or people and
aim to answer questions such as when, where, what and to whom (Saunders et al., 2012). Lastly,
explanatory research seeks to explain the nature of the cause between variables when studying a
situation or problem. Explanatory studies require a descriptive examination first in order to analyze
and get a clearer picture of the variables’ correlation (Saunders et al., 2012). This study was
conducted according to the exploratory method since the purpose of the study was to gain insights
into how fashion companies can create brand equity with environmentally sustainable efforts.
Additionally, there is scarcely previous research on this area which implies that the exploratory
study is considered to be the most appropriate method to utilize.

22
3.2 Research Approach
This study aimed to have an explorative focus, which can be executed with a qualitative or
quantitative approach (David & Sutton, 2016). While a quantitative study is more focused on the
measurement of numbers and variables, a qualitative approach is characterized by words and open-
ended questions. However, the distinction between them is not entirely clear and therefore a study
tends to be more qualitative than quantitative or the other way around (Creswell & Creswell, 2018).
As this study strived to explore and understand the meaning of individuals and groups assigned to
a social problem, in terms of consumers’ perception of CE initiatives, a more qualitative approach
was most suitable (Creswell & Creswell, 2018).

According to Creswell and Creswell (2018), the process of qualitative research involves “emerging
questions and procedures, data typically collected in the participant’s setting, data analysis
inductively building from particulars to general themes, and the researcher making interpretations
of the meaning of the data” (p. 43). This is in line with David and Sutton (2016), stating that
qualitative research is often associated with inductive methods. Inductive methods are more
explorative and focus on the individual meaning and addressing the complexity of a situation
(Creswell & Creswell, 2016). The aim is to build explanations from the collected data, which does
not require measurements and calculation methods in advance (David & Sutton, 2016). Since
research on young consumers’ perception of CE initiatives is limited, the inductive method was
beneficial for this study (Creswell & Creswell, 2016).

3.3 Research Strategy

Following the research approach, it is of importance to decide an appropriate strategy that sets a
plan for how the researcher will proceed to answer the proposed research questions. Saunders et
al. (2012) explain that the study's research questions, existing knowledge, timeframe, and access
to participants are important elements to consider and should therefore guide the selection of
research strategy. There are a number of different strategies to employ for researchers and they
can both be used mutually exclusively and incorporated together, for example combining a case
study within a survey or vice versa. According to Yin (2009), there are five different strategies for
researchers to consider: experiment, survey, archival analysis, history, and case study. Saunders et

23
al. (2012) underline that certain research strategies suit qualitative research better in contrast to
others that are more appropriate for quantitative studies. Further, Saunders et al. (2012) explain
how experiments and surveys are generally linked with quantitative research strategies and
archival analysis is often associated with a qualitative research approach. Yin (2009) states three
different conditions that determine what kind of research strategy that should be conducted:
1. The nature of the research questions
2. The extent of control the researcher has over the actual behavioral event
3. The degree of focus on contemporary events in the research
In Table 2 below, the relationship between each research strategy together with the three conditions
is presented.

Table 2. Relevant Situations for Different Research Strategies

Method Form of Research Requires Control of Behavioral Focus on Contemporary

Question Events? Events?

Experiment How, why? Yes Yes

Survey Who, what, where, how No Yes

many, how much?

Archival Who, what, where, how No Yes/No

Analysis many, how much?

History How, why? No No

Case Study How, why? No Yes

Source:Yin (2009)

The core of finding the most suitable research strategy that has an overall methodological fit is that
all the elements in the methodology section have a high level of coherence which will enable the
researcher to answer the research questions (Edmondson & McManus, 2007; Saunders et al.,
2012). According to Edmondson and McManus (2017), “the key to good research lies not in
choosing the right method, but rather in asking the right question and picking the most powerful
method for answering that particular question” (p. 1157). Therefore, it is vital to choose a strategy
that enables the researchers to ask questions that can help achieve answers to what the study aims
at. Thus, if none of the earlier mentioned strategies reinforce the study, it is more meaningful to

24
find a strategy that is better aligned with the purpose of the study and its research questions
(Edmondson & McManus, 2007).

This study aimed to gain insights into how fashion companies can create brand equity with
environmentally sustainable efforts. Previous research in this field is limited and the novelty of CE
makes in-depth interviews a suitable research strategy to adopt. By interviewing the respondents
with open questions, new insights emerged during the process and the researchers developed a
greater understanding of the field, which suits exploratory studies appropriately (Edmondson &
McManus, 2007). Moreover, this study seeks to gain overall insights into consumers' perception
towards CE initiatives without preconceived assumptions, which was made possible by conducting
in-depth interviews.

3.4 Data Collection

To collect data within a qualitative research approach, David and Sutton (2016) argue that various
types of interviews are common methods. This study has acquired primary data through in-depth
interviews, which is a suitable method for qualitative research (Creswell & Creswell, 2018). The
purpose was to fully understand the opinions and beliefs among the group of Generation Z.
Qualitative interviews are usually conducted face-to-face or through telephone (Creswell &
Creswell, 2016). Additionally, these interviews involve unstructured and generally open-ended
questions. Unstructured interviews are characterized by a few numbers of questions adjusted to
the specific situation in order to give the respondent the ability to express themselves more openly.
Thus, the questions asked and the order of them can vary on different occasions (Creswell &
Creswell, 2016).

On the other end of the spectrum, qualitative interviews can be structured. This means that the
interview process is standardized, including equal questions arrayed in the same order throughout
all occasions. This study includes a semi-structured approach, meaning the interviews were
conducted with a combination of both approaches. As a result, the interviewees were asked
unstructured to partly structured questions during the interviews which enabled them to answer
and discuss a question or subject within a certain frame (David & Sutton, 2016; Creswell &
Creswell, 2018). All interviews took place on digital platforms such as Zoom and Microsoft Teams

25
due to the circumstances of COVID-19. The interviewee was provided with information and
instructions before the interview took place in order to build trust (David & Sutton, 2016).
Additionally, the interviewee was asked for consent to record the interview in order to enable
transcription. The interviews followed an interview guide that was developed based on existing
literature in the field (see Appendix for complete interview guide). Thus, the interview questions
related to RQ2 were based on Aaker’s (1996) measurements The Brand Equity Ten, to strengthen
the validity. The interview guide provided a structure for the interview but contained opportunities
to ask supplementary questions.

3.5 Sample Selection

The selection of respondents to this study was based on the intention to understand the problem
and properly answer the research questions, which is in line with the idea of qualitative research
(Creswell & Creswell, 2018). To fulfill the purpose of the study, the target population was defined
as consumers of fast fashion within Generation Z (born 1994-2002) and currently living in Sweden.
As mentioned, studies have shown that the interest in sustainable products has increased among
younger consumers (Kim et al., 2021). Generation Z is also the future’s mass consumers, which
makes the population interesting to study. The age range was defined with consideration to existing
guidelines on research aimed at young people in Sweden (Socialstyrelsen, 2015). Therefore, this
study only included consumers over the years of 18. Within the population, it was important to
have a spread between the different ages, and diversity regarding gender, self-disclosed
environmental consciousness, and consumption of fast fashion. To be able to appropriately answer
the interview questions, the interviewee was required to purchase from a fast fashion brand at least
once a year. Information about the interviews is listed in Table 3.

26
 Table 3. Interview Respondents

Respondent Year of Birth Gender Date Duration Number of Fast Fashion

Purchases per Year

A 1997 Female 6/4 45 min 12

B 1995 Female 6/4 30 min 48

C 1998 Male 8/4 45 min 6

D 1997 Male 9/4 40 min 6

E 1995 Female 11/4 55 min 48

F 1996 Female 12/4 45 min 10

G 1996 Female 12/4 45 min 4

H 2002 Female 13/4 40 min 12

I 1997 Male 13/4 40 min 4

J 1995 Male 19/4 40 min 24

K 1996 Male 19/4 50 min 3

L 1997 Female 20/4 55 min 10

Purposive sampling was conducted to provide the authors with different perspectives based on age,
gender, and interest in environmentally sustainable consumption within Generation Z. Due to the
limited resources of the study, this was combined with a convenience sampling as respondents
were chosen based on their availability and willingness to participate. As with all non-probability
sampling techniques, purposive sampling and convenience sampling have limitations in terms of
bias risks (Creswell & Creswell, 2016). These were taken into consideration when conducting the
data collection and subsequently the data analysis. In line with Creswell and Creswell (2016), the
collection of data continued until the authors reached the saturation point. This means that no new
insights or reveals were discovered at this point, which resulted in a sample size of 12 respondents
in this study.

3.6 Data Analysis

The gathered empirical data from the interviews with younger consumers were transcribed into
text and thematically analyzed to identify common themes and perceptions towards CE initiatives
in the fast fashion industry. Braun and Clarke (2006) explain that thematic analysis is a widely

27
used method for managing qualitative data that identifies, analyzes, and discovers patterns within
collected data. An important factor to clarify is what characterizes a theme. Braun and Clarke
(2006) describe it as “a theme captures something important about the data in relation to the
research question and represents some level of patterned response or meaning within the data set”
(p. 82). Thematic analysis is a flexible research tool to find differences and similarities that
highlights useful data and facilitates answering the study's research questions (Braun & Clarke,
2006). The analysis has been conducted through a recursive six-phase process developed by Braun
and Clarke (2006) where movements between each phase throughout the process are fundamental.
The thematic analysis consisting of the six different phases is described below.

Phase one - Familiarize with the collected data

To become familiarized with the collected data, the first phase consisted of transcribing every in-
depth interview. This made the researchers aware of the breadth and depth of the qualitative data
and simultaneously ensured meaningful information had been found. Thereafter, the transcribed
interviews were read two times according to the guidelines of Braun and Clarke (2006). By
following these steps to become familiar with the data, the researchers created an overall
understanding of the respondents’ perceptions which facilitated the following analysis.

Phase two - Generating initial codes

The next step was to create initial codes based on the researchers' selected features that were of
interest to the study. The in-depth interviews were coded individually, and to manage all the data
from the 12 respondents, the researchers chose to code only relevant features linked to the subject
to streamline the analysis. By following the guidelines provided by Braun and Clarke (2006), the
collected codes represented information that contributed in a meaningful way to what the study
aimed to achieve. In total 178 codes were found, 95 codes related to the first research question and
83 codes to the second research question. These initial codes were further refined in the next phase.

Phase three - Searching for themes

The third step focused on finding themes in the data material. To achieve this, the identified codes
in phase two were lifted into a separate document and categorized by their content where some
codes clearly fitted together and created a sub-theme (Braun & Clarke, 2006). The sub-themes

28
were built on the respondents' perceptions towards fast fashion brands conducting CE initiatives.
After completing this phase, the codes had been organized into broader sub-themes and aligned
the analysis with the research questions. In total, 19 sub-themes related to the first research
question were defined from the data. Examples of identified themes were Infuses positive emotions
and Greenwashing the brand.

Furthermore, based on the emerging perceptions of Generation Z, 37 themes related to the second
research question were defined. These were found by a second thematic analysis. Based on the
codes and the emerged sub-themes connected to RQ1, it was possible to derive the respondents to
one or more overarching themes. The segmentation of respondents enabled us to search for
relevant themes connected to RQ2 within the different overarching categories. Furthermore, when
the themes were categorized, the measurements of the CBBE elements made it possible to measure
the perceptions’ impact on the CBBE model. Examples of themes related to the impact on the
CBBE components were More satisfied with recycled and reused garments and Fast fashion
brands bring expected value for the money. As there still were a lot of themes related to the first
research question, these were further reviewed in the following phase.

Phase four - Reviewing themes

The aim of phase four was to get an overview of the identified sub-themes and if they were
representative to the study and could remain. During this step, the sub-themes from phase three
with similarities were interlinked together and created main themes (Braun & Clarke, 2006). In
total, six main themes were created that related to Generation Z’s perception of fast fashion brands
conducting CE initiatives. After review, there were still a various number of main themes, these
themes were merged further into appropriate groups that created the overarching themes. After
concluding this phase, a thematic map was created according to Braun and Clarke (2006) to
visualize a conceptualization of the data patterns. In total, three overarching themes were identified
regarding generation Z perceptions of fast fashion brands conducting CE initiatives.

Phase five - Defining and naming overarching themes

This phase consisted of defining the overarching themes, identifying the overall story the analysis
was telling, and investigating what was of interest about them and why. This was to make sure

29
every theme fulfilled a purpose. To give the readers a clear sense of what every theme consisted
of, the study followed Braun and Clarke's (2006) advice to label them with concise and punchy
names. Following each phase of the process resulted in three final overarching themes that
represented the collected data of the study. These themes were Positive perception: Creates value,
Negative perception: Hypocritical, and Indifferent: Not relevant. These overarching themes
represented Generation Z’s perceptions towards fast fashion brands conducting CE initiatives.

Phase six - Producing the report

In the final phase, the composed themes were summarized in a report. Following the
recommendation of Braun and Clarke (2006), the write-up of the data focused on delivering an
interesting, concise, and coherent text in a way that convinced the readers of the validity of the
analysis. To further improve the validity, citations from the interviews were included to ensure
that the respondents' voices were heard. In this phase, it was important to ensure the compiled
report connected the findings to the purpose the research questions of the study.

3.7 Quality Standards

It is crucial to establish a high quality of the research to ensure the evidence and conclusions stand
up to an accurate scrutiny (Saunders et al., 2012). However, it is difficult to know if the delivered
answer is the only correct one when conducting research. By developing a well-grounded research
design, the probability of getting a deceptive answer decrease (Saunders et al., 2012). To increase
the credibility of the study, reliability and validity are two commonly used concepts. A description
of what each concept encompasses in this study is described in the following sections.

3.7.1 Reliability
Reliability refers to the degree to which the research method delivers stable and consistent results.
Saunders et al. (2012) explain that the aim of reliability is to ensure that if a different researcher
would reproduce the study and follow the same course of action, they would end up with similar
results. To ensure the researchers' qualitative approach is reliable, and to make it easier for other
researchers to conduct the same course of action, Yin (2009) recommends thorough documentation

30
of the procedures during the collection and analysis of the data. This recommendation has been
taken into account during the entire administration of the data.

David and Sutton (2016) claim that high reliability in qualitative interviews can be complicated to
achieve due to the human factor. Data collection in the form of verbal answers to questions cannot
be estimated in numbers with static certainty, which complicates the consistency of the measuring
instruments. Moreover, there are additional aspects to consider regarding the human factor when
collecting qualitative data. For example, if the interview is conducted in an inconvenient and
stressful situation, it can lead to misleading answers that affect the results of the analysis (Saunders
et al., 2012). Therefore, delivering a high degree of reliability can be complicated and several
threats can emerge and require researchers to pay attention to.

Saunders et al. (2012) present four different types of threats: participant error, participant bias,
researcher error, and researcher bias. Participant error refers to factors that can negatively alter the
respondents' answers when collecting the qualitative data. The second threat, participant bias is
concerned with insecurity factors that can cause the respondent to not provide truthful answers.
Researcher error refers to factors that can influence the researcher to misinterpret the respondents'
answers. For example, if the researcher is tired or unprepared and thus, misunderstands the answers
during the interview. The last threat concerns preconceptions that can influence the researcher to
record information in a distorted way because of subjective opinions (Saunders et al., 2012).

To enable the study to deliver stable and consistent results with a high degree of reliability, all of
the previously mentioned threats have been taken into consideration. To avoid participant error,
the respondents were involved in determining the time of the interview to avoid inappropriate
situations that may alter their responses. Moreover, the digital interviews were conducted in a place
without disturbances or with people in the background. The researchers wanted to ensure the
respondents felt secure in answering the questions honestly to minimize the risk of participant bias.
To reduce the reliability-threats caused by the researchers, careful preparations were highly
prioritized before each interview to create valuable interviews that contribute to achieving the
purpose of the study. Lastly, to avoid preconceptions influencing the collected data, the interviews
and transcribing were accomplished by both researchers together.

31
3.7.2 Validity
Validity is the second concept to consider in order to enable high credibility of a research.
According to Saunders et al. (2012), validity comes in three different forms: construct,- internal-
and external validity. Further, Saunders et al. (2012) describe construct validity as to which extent
the study's research measures what it is intended to measure. In order to achieve a high degree of
constructed validity, Yin (2009) states three tactics: multiple sources of evidence when collecting
data, keeping a chain of evidence, and having a case study reviewed by key informants. Internal
validity focuses on strengthening the quality of causal relationships between two variables by
explaining why and how outcomes of the variables. However, this is associated with explanatory
studies and cannot be applied to exploratory or descriptive studies (Saunders et al., 2012; Yin,
2009). Since this study has an exploratory approach there were no measures to take into account
regarding the internal form of validity. The third concept, external validity is concerned with the
question of knowing whether the findings of a study are generalizable to other contexts (Saunders
et al., 2012; Yin, 2009).

To enable a high level of construct validity in the study, all three previous tactics stated by Yin
(2009) have been taken into consideration. To possess multiple sources of evidence, the study used
both primary and secondary data throughout the research. Primary data based on conducted
interviews and secondary sources in the form of high quality, peer-reviewed journals, and valid
industry reports. Secondly, keeping a chain of evidence was taken into account by interviewing 12
respondents with a semi-structured approach that enabled them to discuss the answers that later
were used as evidence in the study's analysis. The last tactic was established by regularly letting
the researchers’ supervisor at Luleå University of Technology scrutinize the process and ensure
the study was developing in the right direction to strengthen the construct validity of the study.
Concerning external validity, this study had a limited sample of respondents and therefore it was
difficult to generalize the results and apply them to other contexts. The study focused on gaining
insights into Generation Z perceptions of the fast fashion industry and how CE initiatives can
strengthen brand equity. The presented result of the study is thus concentrated towards fast fashion
brands and targets a narrow group. Nevertheless, the result of the study can be valuable for many
brands that are part of the fast fashion industry.

32
4. ANALYSIS AND FINDINGS
This chapter presents an analysis of the collected data related to the research questions of the
study and is divided into two sections. First, a presentation of the themes revolving around
consumer perceptions towards CE initiatives and fast fashion brands. Later, the emerged
perceptions are analyzed based on the measurements of the CBBE model to examine its impact.
Lastly, a summary of the findings is presented at the end of the chapter.

4.1 Perceptions Towards CE Initiatives

The following chapter presents an analysis linked to the first research question (RQ1) of the study,
where the collected data of 12 participating respondents is used. The data analysis is built on three
overarching themes, six main themes, and 19 associated subthemes. The analysis of Generation Z
perceptions towards fast fashion brands conducting CE initiatives is presented in a thematic map.
At the top of the map, there are the overarching themes, built on two main themes which
furthermore each consist of one sub-theme. The thematic map is presented in Figure 4.

Figure 4. Thematic map of the perceptions towards CE initiatives

33
4.1.1 Positive Perception: Creates Value
The first overarching theme, Positive perception: Creates value, consists of the main-themes Right
investments for the future and Infuses trust and positive emotions. In Table 4, a selection of
representative quotes is presented in connection with the sub-themes. For each of the citations,
there are columns showing the respondent in question and which main- and overarching theme
they belong to.

Table 4. Overarching Theme 1

Positive Perception: Creates Value

Resp. Representative Quote Sub-theme Main Theme

G “I mainly think that all activities are good in some way, but to varying A step in the right
degrees. There are scales of it, but I think it is very important that there is a direction
discussion and focus on it and something they constantly work with. A small
activity is also a step along the way. So, I think it is good with such
initiatives.”

K “Fast fashion brands should take responsibility and have realized that it is A timely subject Right
only a matter of time before it becomes sufficiently profitable to have Investments
environmentally friendly processes. That it will be profitable in the future to for the Future
work with, for example, recycling. But I think they are modern in their
thinking. It feels like if you do not jump on the bandwagon, you will not keep
up with the competition either in 5-10 years' time.”

L “Yes, I do not see why I would not be interested in reused and recycled Positive to reuse
clothes as long as it meets my criteria of good fit and price.” clothes if it
fulfills consumer
requirements

Resp. Representative Quote Sub-theme Main Theme

H “Yes, I would definitely be interested in buying reused garments. I would have Infuses positive
felt good and reduced my conscience a little because I know about the emotions
consequences of purchasing from fast fashion brands.”

E “I think everything sounds very good if the fast fashion brands manage to do Appreciates
it. I do not have such a high budget, but at the same time, I do not want the sustainable
earth’s resources to run out. Therefore, it might be worth paying a little extra alternatives Infuses Trust
to make it more sustainable. I get a bad conscience when we do not take care and Positive
of the environment.” Emotions

D “Absolutely, I would believe the initiatives. I find it trustworthy if fast fashion CE initiatives are
brands communicate that they are working with circular initiatives in their trustful
business.”

I “I think it is good that fast fashion brands are starting to work with CE initiatives
sustainability. I would say that's something that attracts me, and I think it is captivate
cool to see that they make that extra effort.” attention

34
The first main theme, Right investments for the future, refers to the majority of our respondents
that have stated their positive perception of ecological sustainable actions within the fast fashion
context. They appreciated fast fashion brands taking responsibility and focusing on ecologically
sustainability to ensure that something is done to reduce the climate footprint. The perception was
based on the fact that many people perceived the industry as bad for the environment. Thus, the
respondents thought it is good that some kind of action is being taken. Consequently, it is clear
that there is faith in fast fashion brands and there is a belief that the initiatives really can make a
difference for the environment.

A timely subject refers to several respondents that highlighted the importance of talking and acting
sustainably. The climate issue is a priority topic that is on top of the agenda and today, an
increasing number of consumers value sustainability in their everyday lives. An important aspect
to consider is that Respondent G and Respondent I, among others, expressed a positive attitude
towards reused and recycled garments but also stated that the garments still have to meet their
requirements. This indicates that consumers prefer it to be uncomplicated to buy sustainable
clothing and do not want to compromise with their requirements when it comes to reused and
recycled garments. The CE initiatives are considered to be good but must meet the same, or higher
requirements that consumers today ask for. One respondent explained it like this:

I cannot imagine that I would not be interested in reused and recycled garments as long as it
meets my criteria of good fit and price. I cannot see anything wrong with it, only if the garments
would be broken and in poor quality. But otherwise, I am positive about it. It would feel good to
know that I have taken advantage of something that otherwise would have been thrown away.
– Respondent L

Looking at the next main theme, Infuses trust and positive emotions refers to many of the
respondents that highlighted the positive emotions that CE initiatives evoke. Consequently, to be
a part of sustainability initiatives such as reducing, reusing and recycling, made the respondents
feel good about themselves. As seen in the previous main theme, the respondents were positive
towards CE initiatives for rational reasons, namely, the positive effect on the environment. Here,
the emotional benefit for the consumers is shown. It made them feel good because it eased the bad

35
conscience, and they can easily make sustainable choices in everyday life. Respondent D
emphasized like this:

I can imagine buying reused garments, I can definitely see myself doing that. It would have felt
good in my stomach that it is recycled and that it is environmentally friendly and so on. I am
absolutely positive about brands that invite their customers into that opportunity. – Respondent D

It was also found that the respondents appreciated the sustainable alternatives when it comes to
consumption of garments. By substituting garments manufactured through a linear process with
sustainable garments, consumers directly get involved and participate in the movement to not
running out of the earth's resources. Thereby, fast fashion brands are able to invite consumers and
allow them to participate in the circular process, as well as reduce the feeling of bad conscience
when consuming garments. Moreover, the next emerging theme was a recurring topic that has been
discussed and highlighted by all 12 respondents: the trustworthiness of the CE initiatives. Several
respondents found the initiatives trustful, and they did not question the initiatives the fast fashion
brands said to work with. Especially Respondent I, who found the CE initiatives credible and
pointed out that fashion companies' own eco-labels were something he appreciated. Consequently,
this implies that the initiation of brands' own eco-labels can thus support increasing the credibility
of their sustainability work.

The empirical findings also showed that conducting CE initiatives catches attention among
consumers of Generation Z. Respondent J, who purchases fast fashion 24 times per year, stated
the initiatives as very positive and emphasized that they attract a lot of attention. This indicates
that there is an awareness among consumers of Generation Z that the fashion industry is not good
for the environment. Thus, fast fashion brands differentiate themselves when they implement
sustainable alternatives for consumers that stand out.

4.1.2 Negative Perception: Hypocritical

The second overarching theme, Negative perception: Hypocritical, consists of the main themes
Low reliability and Contradictory to the business model. In Table 5, a sample of representative
quotes is shown that are interlinked with each of the sub-themes and main themes.

36
 Table 5. Overarching Theme 2

Negative Perception: Hypocritical

Resp. Representative Quote Sub-theme Main Theme

I “I would say that the credibility is probably quite low, and I get quite easily Greenwashing
fooled by it as well and believe that they are environmentally conscious. On the the brand
whole, it is like greenwashing, that you try to green paint the image of the
company, even if it is maybe 10 % that is done well and 90 % that is not that
done well.“

A “Many of these companies, as I have understood it, have their own eco-label or Skepticism
their own recycling that is not controlled by impartial eco-labels. So, I am a about eco-labels
little skeptical of them.”
Low
H “I think it is good that they are doing something. But there will be no major The actions are Reliability
difference until they have addressed the core of the problem. Of course, it helps not enough
a little, but recycling a few thousand garments in Sweden will not make a big
change for the environment or the social impact in the long run. It is good that
they do something, but I mostly feel that it is done "for show", nothing that will
compensate for all the bad things they do.”

G “I would like to buy recycled and reproduced garments, but I do not really know Important with
what happens with the collected garments or the plastic that has been recycled. transparency
In the case of H&M in particular, I would probably be a little skeptical if I did
not know about the traceability of it. Therefore, I would like to know about the
recycling process and, for example, if the process took place in Sweden or
somewhere else. And I would want to know clearly what has happened, to get
some background to it.”

Resp. Representative Quote Sub-theme Main Theme

B “I am thinking that fast fashion brands are not working especially well with Goes against the
sustainability since there is a lot of “wear and tear” in their business concept. business model
You buy something new all the time. It is based on consumers that constantly
shall buy new garments.“
Contradictory
C “Spontaneously, I would say fast fashion brands' business model is based a lot The business to the
on the concept of “wear and tear”. And it also means that if something breaks, model is based Business
we do not take the time or energy to repair simply because it is easier to buy on “wear and Model
new garments instead. If you look at several types of business models, it is about tear”
getting people to buy over and over again.”

K “My perception is that fast fashion brands are trying to work more with Pressure from
sustainability since they have to because of pressure from society. It's like a no- society
brainer to have sustainable initiatives.”

The main theme Low reliability is about the expressed skepticism towards the reliability of
environmental actions conducted by fast fashion brands, which was a recurring theme among the
respondents. An interesting point stated by Respondent C is that fast fashion brands use CE
initiatives to mask non-sustainable part of the business. Many respondents discussed the fact that
the phenomenon of “greenwashing” is spreading since the interest in sustainability has increased

37
during the last years. This is in line with Niinimäki (2015) who states that the rising interest in
environmental and sustainability issues has induced companies to start using this as a selling point
to increase sales. One respondent explained the view on greenwashing:

Before I became more informed about the environmental impact of clothing, I was quite naive
and did not talk about this thing called greenwashing. Companies can easily put on a green label
and say "we are environmentally friendly" but when it is from H&M it cannot be quite as
environmentally friendly as they might want it to seem. Now I have probably got a more critical
eye towards fast fashion that I may not have had before. – Respondent F.

These points led us to the next sub-theme, Skepticism about eco-labels, which was highlighted by
some of the respondents. In contrast to the positive perception, it turned out that fast fashion
brand’s own eco-labels have low reliability among some of the respondents. Respondent A and
Respondent F expressed their skepticism, underlining that many of the private eco-labels are not
controlled by independent actors. Additionally, Respondent A described the eco-labels as a sales
trick that is executed because sustainability and recycling are trendy today. Another interesting
finding was that a number of the respondents did not think the actions were sufficient in relation
to the damage caused by fast fashion companies. Respondent D discussed the width of CE
initiatives, arguing that fast fashion brands are showing off sustainable actions, but it is just a small
percentage of the company that is sustainable. Thus, there is a skepticism about the width of the
initiatives and how companies present it to the customers. Just like many other respondents,
Respondent D highlighted the great PR value for brands working with sustainable actions. In sum,
the actions are considered to be a small and isolated part of the business which is enough to claim
to be a sustainable brand.

To strengthen the reliability of CE initiatives, some respondents expressed that total transparency
was important to them. The respondents stressed that it is important to have an overview of what
the value chain looks like to be able to make well-informed decisions. Thus, the customers
perceived increased transparency as a way to make it more difficult for fast fashion brands to hide
non-sustainable actions. Respondent F stressed that total transparency would increase the interest
for a certain fast fashion brand. However, there is a lack of transparency from fast fashion brands

38
today which Respondent F believed is a reason to be skeptical towards CE initiatives in the fast
fashion industry.

The second main theme belonging to the negative perception, is about the CE initiatives being
Contradictory to the business model. This theme emerged through the perception of CE initiatives
as something that contradicts the business model of fast fashion brands. Since the business model
is based on cost leadership and high volumes, it seems logical to think that this is not possible to
combine with sustainable actions. Respondent A thought that CE initiatives are used by fast
fashion brands to sell more clothes. This indicates that consumers perceive sustainable actions
within the fast fashion industry as hypocritical, which negatively affects the perception of the
brand. Another interesting finding was that a majority of the respondents were skeptical about
whether fast fashion brands are doing sustainable actions voluntarily and genuinely. Instead, CE
initiatives were perceived as something that fast fashion brands were working with only because
of pressure from society. Respondent C stated that they work with it because of pressure from
politicians and consumers, rather than because of a genuine will to do something good for the
environment. The same respondent explained it as follow:

I may be a bit cynical, but I spontaneously think that there are very, very few companies that do it
because they really, really want to. I think there is pressure from both society and politicians to
take social responsibility and that is why it becomes a unique selling point to just say ‘look at us,
we take care of the environment. Some companies really care about the environment and have
done it since the start. The purpose and the main goal have been a more sustainable society since
day one. The other companies in the fast fashion industry have tried to adapt to that because
society is pushing for this today. It is a bit fake for me, but I still understand it. It has become
almost like a requirement that you have to be really sustainable in your business model.
– Respondent C

In sum, the most interesting findings were that many of the respondents perceived the CE
initiatives as greenwashing and a marketing-ploy. Additionally, the actions of fast fashion brands
were considered to not be insufficient, and contradictory to the business model of fast fashion
companies. Moreover, the CE initiatives were perceived as something that is done because of
pressure from society rather than because of a genuine intention to do good for the environment.

39
4.1.3 Indifferent perception: Not relevant
The third and final overarching theme is Indifferent perception: Not relevant, which is divided into
the two main themes Lack of knowledge and Interest and Does not concern consumers. See Table
6 for a selection of representative quotes that are interlinked with each sub-theme and main theme.

Table 6. Overarching Theme 3

Indifferent Perception: Not Relevant

Resp. Representative Quote Sub-theme Main Theme

D “It feels like you know quite a bit about it. There is a lot of talk about the Limited
social dimension, a lot of scandals with child labor in the third world and so knowledge
on. I have no major idea about ecological sustainability. It does not feel like
very much is written about it, at least what I have seen.”
Lack of
Knowledge
J “In fact, I do not reflect at all in my everyday life on how fast fashion brands Lack of
and Interest
works with sustainability.” reflection

K “I would not be interested in consuming reused and recycled clothes. I am Lack of

not very much into wearing already used clothes.” interest

Resp. Representative Quote Sub-theme Main Theme

D “I think that issue about sustainable fashion consumption may not really be Political issue
on my table, but that it is primarily on a political level.” Does Not
Concern
H “I wish I had the energy to put more effort into it, but it feels like it does not Makes no Consumers
matter what I do. It will not make a difference in the long run.” difference

The first main theme Lack of knowledge and interest is derived from a few respondents who
expressed their limited knowledge when it comes to the fast fashion industry in general, and
sustainability initiatives in particular. According to Respondent D, a reason for the limited
knowledge was that the social dimension has received more attention within the fast fashion
industry than the ecological dimension. Moreover, the limited insights were also a result of a lack
of communication from fast fashion brands. One respondent explained it like this:

I do not know much about how fast fashion brands are working with ecological sustainability.
And if they work with it, they have not managed to communicate their actions to me at least.
- Respondent L

40
Those interpretations highlight the different perspectives and knowledge of fast fashion brands
when it comes to sustainable efforts. Moreover, the importance of suitable communication
strategies has become clear as fast fashion brands must adapt to the consumer to reach their target
segments. These points led us to the next interesting sub-theme: Lack of reflection. The perception
is based on the fact that CE initiatives were not something that has been reflected on in everyday
life. This indeed underlines the limited awareness of the ecological dimension of the fast fashion
industry among some consumers. Another characteristic behind the indifferent perception was that
some respondents did not find reused or recycled garments interesting. Respondent C explained
that it would feel strange to wear garments that someone else has worn before. Thereby, it was not
relevant for them to decide whether they appreciated the initiatives or not. This reasoning indicates
a difference in the perception of reused and recycled garments in contrast to newly produced ones.

The final main theme is Does not concern Consumers. Some of the respondents expressed that it
does not matter what sustainable effort fashion brands were conducting because the environmental
issue of clothes did not concern the respondents to a large extent. They meant that the responsibility
is not on an individual level, but rather on a political level where decisions and actions must be
made by higher authorities. Respondent K emphasized it the following way:

It surely is important to work with ecological sustainability. However, I think it is up to politicians

and companies to create an infrastructure that makes it easy for consumers to make sustainable
choices. - Respondent K

Another important finding of why some of the respondents consider themselves being indifferent
to the CE initiatives was because they perceive their individual actions do not matter. Respondent
F explained that she does everything she can for the environment, but still does not think it is
enough. In other words, the respondents experienced that their actions on an individual level did
not generate a difference in the long run, and therefore, the CE initiatives did not concern them.
Consequently, there is a standpoint that thinks sustainability is an important aspect to consider but
complicated to manage on a personal level. This indicates that there are feelings among Generation
Z that can interlink sustainability initiatives with a lack of hope.

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4.2 The Perceptions’ Impact on CBBE
This part of the analysis is linked to the second research question (RQ2) of the study. The
previously analyzed data of the perceptions of Generation Z is used to identify themes that are
applied to the four elements of the CBBE model. Furthermore, the measurements of the CBBE
elements make it possible to see what impact the perceptions have on the CBBE model of fast
fashion brands.

4.2.1 Positive Perceptions’ Impact on the CBBE

In the following section, it is presented how positive perceptions towards CE initiatives are
affecting the CBBE components in different ways. In terms of each component, the themes that
have emerged are presented in Figure 5.

Figure 5. Thematic map of positive perceptions’ impact on CBBE components

An interesting finding when analyzing the collected data was that the respondents with a positive
perception towards CE initiatives considered themselves to be loyal to fast fashion brands. In this
segment, the majority presented a higher willingness to pay for brands offering reused and recycled
garments. Also, the satisfaction of the garments was considered to be stronger if they were reused
or recycled. Respondent E expressed the increased satisfaction of reused garments and highlighted
the evoke positive feelings that brought less anxiety when purchasing. Furthermore, the

42
differentiation of fast fashion brands was based on the power of actions, meaning that what stands
out were brands that use their power to make a difference for society and the environment. One
respondent emphasized it the following way:

Fast fashion brands can strongly differentiate themselves from competitors by actions. These
brands are huge players that can make a huge impact with their work. And if they implement
good things, good initiatives, that do not only benefit the company itself financially or so, then I
get impressed and get caught. If they use their power to do something good, it creates awareness
- Respondent G

Moreover, in this group of respondents, awareness is created when fast fashion brands establish
unique and innovative sustainable solutions that stand out from the crowd. As an example,
Respondent D described that technology solutions producing garments of new and innovative
materials would catch his attention. From a brand association perspective, there were strong
noteworthy associations linked to brands conducting CE initiatives. Environmental
Consciousness, Responsibility, and Impact were characteristics that often arose among the
respondents. Moreover, Respondent I, among others in this group, considered sustainable garments
to bring more value for the money.

An interesting finding was that people with a positive perception of CE initiatives associate a lot
of their own positive characteristics with the brand. Respondent G explicitly noticed that her
description of a brand directly reflected her own personal traits. Furthermore, the personality of a
fast fashion brand was interlinked with attributes such as Laid-back, Trendy and Thoughtful. That
itself indicates that they feel the brand aligns more to them as a person. This could possibly create
stronger associations to the brands and lead to higher levels of loyalty. An important aspect to
point out was that the majority of the positive respondents perceived the quality of fast fashion
brands’ garments, in general, as inferior. However, garments made of recycled material were
perceived to have a higher quality. Respondent J, who purchase from fast fashion brands 24 times
per year, explained it like this:

43
 I am aware that the quality is not the best. The garments are made to be replaced within a year
and after that, you throw them away and buy similar clothes again. But if the garments were made
of recycled material, it feels like they are more of substantial quality. There is more work behind it
which strengthens the quality. - Respondent J

When further analyzing the perceived quality of the CBBE of fast fashion brands, leadership is
one of the measurements. When asking what characterizes a leading fast fashion brand in the
market, there were similarities found among the respondents regarding their perceptions. The
garments should have affordable prices, the brands should be accessible to everyone and be quick
at following trends. Moreover, the majority of the positive segment stated that a leading brand was
expected to work with sustainability, and particularly CE initiatives within the fashion industry.
Respondent H agreed on this and added that working with sustainability could be a decisive factor
when it comes to choosing between two brands offering similar products. Consequently, the results
indicate that a positive perception of fast fashion brands conducting CE initiatives can positively
affect the CBBE. After analyzing the empirical data, it has been found that the CE initiatives have,
to varying degrees, a positive impact on all the elements.

4.2.2 Negative Perceptions’ Impact on the CBBE

In the following section, it is presented how negative perceptions towards CE initiatives are
affecting the CBBE components in different ways. In terms of each component, the themes that
have emerged based on the measurements are presented in Figure 6.

44
 Figure 6. Thematic map of negative perceptions’ impact on CBBE components

The empirical findings showed that the group of respondents that had a negative perception
towards CE initiatives considered themselves disloyal to fast fashion brands. The brand had minor
importance for the purchasing decision of garments. On the other hand, accessibility was an
important factor that was taken into account when purchasing. Respondent A and Respondent B
stated that availability even was a decisive factor when selecting which fast fashion brand to
purchase from. The respondents that were negative towards CE initiatives, considered price as an
important factor for satisfaction. Thereby, they were not willing to pay more for reused or recycled
garments. This indicates that CE initiatives have little to no impact on brand loyalty because the
respondents tend to have a negative perception of it.

In this group of respondents, the majority considered price and promotion in digital channels as
components that create awareness of a brand. Fast fashion brands are perceived to be differentiated
from competing brands by offering the latest trends to the lowest prices, which is in line with the
traditional model of a fast fashion brand. Respondent C and Respondent E highlighted that
marketing through social media channels was what especially catches their attention. One
respondent explained how fast fashion brands caught attention:

45
 For me, fast fashion brands must work a lot with their digital channels. For example, I want to
easily see the clothes’ fit on their website. I do not think the brand is important, it is mostly the
product, how good it is, and how well the company manages to communicate it to me, that attracts
my attention. - Respondent K

Continuing with the brand association, Respondent F and Respondent G, among others, did not
notice any difference when referring to the value of the money fast fashion brands delivered.
Interestingly, when the respondents were asked about what characterizes a brand working with CE
initiatives, there were different responses compared to the segments of positive perception. Impact,
Careful and Not 100 % there yet were words associated with the fast fashion brands. Thus, there
is a divergence of associations, but it is possible to read a certain skepticism towards the brands
conducting CE initiatives. Looking at the brand personality, emerged characteristics were Self-
absorbed, Stylish, and Superficial. Noteworthy, there was a consensus on the perception of fashion
brands as not being genuine. Instead, there were indications where the perception of the brand's
personality was cold and fixed to appearance. In the interview, all 12 respondents were asked to
describe a fast fashion brand as a person walking into the room. One respondent described it like:

I can see a very cocky person who is self-absorbed and only cares about herself and her ego. I
would say she has trendy, stylish clothes, maybe suit pants and a blazer. Very concerned about her
appearance, but not as concerned about how she behaves towards others. Important for this
person is what she can gain from a situation. The most important thing for the person is that it
looks good on the outside and that she is accepted by people, even though she is not so popular.
- Respondent H

Due to the description of the fast fashion brand, a negative perception is being clarified. This
indicates an overall unfavorable attitude towards fast fashion brands, whether they are working
with sustainability or not. Moving on to the final element of the CBBE, perceived quality it was
interesting that the respondents considered the quality of recycled garments to be inferior.
Furthermore, the same reasoning was applied to recycled and reused garments. Respondent A did
not believe the quality of the garments would be improved if it was made of recycled materials,
whereas Respondent C considered the quality of recycled clothes would be even worse. Moreover,
when the respondents were asked what characterizes a leading fast fashion brand in the market,

46
one similarity with the group of positive perceptions was discovered: trendiness. A leading brand
was also characterized by a high level of availability and its offering with the lowest prices. The
majority did not put much emphasis on that a leading fast fashion brand should work with CE
initiatives. Respondent E, who purchased fast fashion garments 48 times per year, explained that
CE initiatives were not something she thought about when referring to fast fashion brands.

The result makes it possible to examine the impact on the four building blocks of CBBE. Overall,
CE initiatives were not of priority in this group of respondents. Many of the respondents were
skeptical about the quality of reused and recycled garments. Additionally, they were not willing to
pay more for those garments and consider other factors more important when choosing which fast
fashion brand to purchase from. This indicates that the CE initiatives are not affecting the CBBE
positively. Moreover, it can even negatively affect the CBBE, especially the two elements Brand
Loyalty and Perceived Quality as described previously.

4.2.3 Indifferent Perceptions’ Impact on the CBBE

In this chapter, it is presented what impact an indifferent perception towards CE initiatives is
having on the four elements of the CBBE. In Figure 7, the themes that have emerged are presented.

Figure 7. Thematic map of indifferent perceptions’ impact on CBBE components

47
The emerged themes are based on the fact that some of the respondents had a lack of knowledge
and interest in the topic and that the environmental aspects of fast fashion clothes are not
concerning them. The majority of the respondents with an indifferent perception towards CE
initiatives agreed that style and fit were important factors to consider in the choice of fast fashion
brands. In this group, several respondents expressed that they were willing to pay marginally
higher prices for brands offering reused and recycled garments. Respondent K stressed the quality
of the garments played an essential role in the question of the price. Moreover, he was willing to
pay 10-20 percent higher prices if the quality of recycled garments proved to be better compared
to non-recycled ones. Consequently, there are interests in reused and recycled garments, but the
respondents are not willing to pay significantly more money for them. Respondent D emphasized
it like this:

It is difficult to answer yes or no if I am willing to pay more. It depends on how much more
expensive it is. If it costs an additional 10 percent, then absolutely. But if we are talking about an
increase of 40 percent, then I will not buy it. In general, for me as a student, I do not have
especially much money. Therefore, I do not want to spend so much more on it. In the future when
I have started working, I can probably see it in a different way. But for here and now, I will not
pay much extra for such things. - Respondent D

The empirical data also showed that CE initiatives were not crucial for the satisfaction of the
consumers in this group. In the second CBBE element, which is brand awareness, the CE initiatives
had little to no impact. The respondents with an indifferent perception did not see any major
difference between different fast fashion brands and the CE initiatives were not something that
caught the awareness. According to Respondent L and Respondent D, fast fashion brands that were
up-to-date and created interesting and appealing messages caught their attention instead. The
distant opinion of the respondents was also shown in the measurement of the perceived value of a
brand, where the majority stated that all fast fashion brands brought expected value for the money.

Environmentally conscious, Marketing Ploy and Innovation were, according to the group with an
indifferent perception, characteristics associated with fast fashion brands conducting CE
initiatives. Respondent I and Respondent L underlined that some fast fashion brands have
innovative thinking and are environmentally conscious, while Respondent D believed that brands

48
use CE initiatives as a unique selling point to increase sales. The associations with fast fashion
brands indeed showed divided opinions including both positive and negative perceptions of the
actions. Moreover, this indicates that there is ambiguity among Generation Z as some appreciated
the actions, and some did not. When the respondents were asked to describe a fast fashion brand’s
personality, Basic, Professional, and Imperceptible were characteristics that commonly arose. The
descriptions indicate that fast fashion brands have not made a noticeable impression on the
respondents. The empirical findings also presented that the respondents perceived fast fashion
brands' quality as average and expected recycled garments to be of equal quality. One respondent
explained it like this:

I believe the quality of garments made of recycled materials would be all right with the technology
available today, I definitely believe that. I think the quality is equivalent to the materials that are
used to produce non-recycled garments. - Respondent K

These findings indicate there is a belief in recycled materials and that the respondents do not
exclude buying recycled garments. Moreover, when asking what characterizes a leading fast
fashion brand, similarities were found among the previous perceptions. To be agile and provide
the latest trends and offer the trends at affordable prices, were commonly mentioned
characteristics among the respondents. Lastly, an interesting finding was that a majority of the
respondents expressed that CE initiatives are not of value for them today. However, they pointed
out that the initiatives were considered to be more important to manage in the future. One
respondent explained the situation as follows:

I would not say that it is especially important to me that leading brands work with sustainability
today. It is not something I find any great value in. But it is something that I believe will be even
more important in the future. If brands do not work with it, I think they will lag behind other
companies around the world. That is, they will not be competitive because they do not follow the
natural stages of development. - Respondent I

In sum, the empirical findings showed that the indifferent perception of the respondents had a
moderate impact on the elements of the CBBE. That is based on the fact that some of the
respondents had a lack of knowledge and interest in the topic and that the environmental aspects

49
of fast fashion clothes are not concerning them. Therefore, the answers were factual where the
respondents did not have strong opinions on the subject. This indicates that CE initiatives have no
or little impact on the CBBE.

4.3 Summary of the Findings

Taken all together, the analysis of the empirical data has provided deeper insights into the segments
of positive, negative, and indifferent perceptions towards CE initiatives. It was discovered that
some of the respondents appreciated the sustainable efforts by fast fashion brands, whereas others
were skeptical and associated the reduce, reuse, and recycling initiatives with greenwashing.
Lastly, some respondents considered themselves being indifferent to the initiatives due to their
lack of knowledge and concern. The segments with different perceptions showed both positive and
negative impacts on the elements of CBBE to varying extents. To summarize the most prominent
findings from the analyzed data, a visualization of the segments’ overall characteristics and how
they impact the CBBE model is presented in Figure 8 below.

Figure 8. Characteristics of the segments and the impact on CBBE

50
5. DISCUSSION
This final chapter includes a discussion of the most important findings of the study to fulfill the
research purpose. The theoretical and practical contributions of the thesis are presented.
Thereafter, the chapter ends by addressing the limitations of the study, followed by suggestions
for future research within the area.

5.1 Discussion and Conclusions

This study enhances the understanding of how environmentally sustainable efforts, in terms of CE
initiatives, are affecting the CBBE of fast fashion brands. The study shows an exploration of what
the self-disclosed perceptions of Generation Z are regarding fast fashion companies conducting
CE initiatives, and how these perceptions impact the CBBE of fast fashion brands. Since the fast
fashion industry contributes greatly to environmental pollution, and environmental consciousness
among younger consumers has increased (Kim et al., 2021), knowledge about Generation Z’s
perceptions and how these perceptions impact a fast fashion brand is needed.

From a qualitative perspective, the results show that there is a wide range of perceptions when it
comes to fast fashion brands conducting CE initiatives. In this study, three main perceptions have
emerged that capture these perceptions; CE initiatives Creates Value, are Hypocritical and are Not
relevant. A vast majority of the respondents states that it is promising that fast fashion brands are
working with sustainable actions and actually are trying to contribute to a better environment.
Moreover, CE initiatives are seen as well-timed investments for society and something that infuses
positive emotions for the individual. While there is a positive perception of fast fashion brands
taking action for the environment, there is also a great skepticism about the reliability and
intentions behind it. Hence, consumers perceive the initiatives as unreliable and something that
contradicts the business idea of fast fashion brands, which constitutes the segment of negative
perceptions. In contrast, indifferent consumers perceive themselves as not having enough
knowledge and interest to create an opinion on the subject. Therefore, sustainable actions within
the fast fashion industry are not relevant to those consumers. In sum, the three main perceptions
answer the first research question about Generation Z’s self-disclosed perceptions of fast fashion
and CE initiatives.

51
When interpreting the results, it is clear that consumers within Generation Z are having different
views on sustainable efforts. The positive perception is characterized by hopefulness and belief in
the future, as a result of the CE initiatives. Those consumers express a more nuanced view of the
subject and possess deeper knowledge and interest about CE in general and the fast fashion
industry in particular. The negative perception is characterized by a more one-sided view when it
comes to sustainable actions. Those consumers appreciate sustainable actions but lean towards a
more “all-or-nothing” view. In other words, the whole company should be permeated by
sustainability thinking to be perceived as trustworthy, otherwise, it is perceived as a marketing
ploy.

What is even more interesting is that the perceptions do indeed impact the CBBE, but in different
ways. This in turn can both strengthen the brand and weaken it, which fast fashion brands need to
be aware of when working with sustainability. In terms of the building blocks of CBBE, the
different perceptions had a clear impact on brand loyalty. The willingness to pay more for reused
and recycled clothes indicates that sustainable alternatives provide value. In line with that, brand
awareness can be created by using the power that large fast fashion companies possess in order to
make a positive change for the environment. Another interesting finding connected to the CBBE
element of brand association is that consumers see the brand as an extension of themselves. To a
certain level, the consumers apply their personal characteristics to the brand. Hence, their self-
disclosed perception of themselves impacts the perception of the brand. However, this means that
initiatives that are not in line with the consumer’s values are having a small impact on the CBBE.

In terms of perceived quality, it is found that consumers with a positive perception are relating
more to sustainability in almost all aspects when it comes to the perception of the brand. In
contrast, negative and indifferent consumers value other factors than sustainability when it comes
to perceived quality. The same pattern is found when it comes to the idea of a leading fast fashion
brand in the market. What is interesting is that consumers within the positive segment expect
recycled garments to have a higher quality in comparison with non-recycled clothes, while
consumers within the negative segment are expecting recycled garments to have inferior quality.
This can explain why consumers with a negative perception are not willing to pay more for

52
recycled clothes, which is one of the measurements of brand loyalty. To conclude, the perceptions
are impacting the CBBE in more than one dimension.

One of the most interesting findings is that regardless of one’s perception about fast fashion brands
working with sustainability, a vast majority of consumers expressed that companies need to take
responsibility for the environment. Considering the emerging climate movement, Generation Z is
indeed concerned about the environment and represents “woke” consumers, which is in line with
Amed et al (2019). Front figures such as Greta Thunberg originate from this generation and have
had a huge impact on the view of the environment (Sabherwal et al., 2021). Consequently, the
perception is more about how the sustainable actions are done, how it is communicated, and what
the intentions behind them are. Previous researchers have talked about adding value to a brand
(Atilgan et al., 2005; Christodoulides & Chernatony, 2010; Keller, 1993). Through this study, it is
clear that sustainability is also a factor that also adds value to the brand. The result indicates that
according to Generation Z, CE initiatives add value in a sustainable manner.

Consumers’ perceptions regarding CE initiatives and brands are complex and multi-dimensional.
This is because many consumers have different perceptions that contradict each other. While some
believe that CE initiatives provide positive effects in the fast fashion industry, they are at the same
time questioning the brands’ efforts and perceive them as greenwashing. It is also important to
consider that self-disclosed perceptions mainly represent the individual’s thoughts and opinions
on the subject and not necessarily their actual behavior. However, one can argue it will become
more important with sustainability activities. This is due to the fact that some of the respondents
expressed that it is not important to them that a leading brand in the fast fashion industry is working
with CE initiatives today, but that it will become more important in the future. In conclusion, this
indicates that the perceptions are changeable and not an absolute state. Moreover, this points to
the direction of where fast fashion brands should go. Challenges with CE stated by Sauvé et al.
(2016), Brydges (2021), and Shrivastava et al. (2021) can thereby be handled and thus build a
stronger brand.

53
5.2 Theoretical Contributions
CE and CBBE are two well-known concepts that separately have gained much attention in the
academic literature. However, these two areas have not been integrated with each other nor
included the perceptions of Generation Z in the calculation. Recent studies have highlighted
different types of challenges posed by the circular economy and what types of barriers can arise in
the implementation. Consumer acceptance, social barriers, and the transition of fast fashion brands'
business models are factors that have been highlighted (Brydges, 2021; Camacho-Otero et al.,
2018). Moreover, the literature also highlights the possibilities of implementing CE initiatives into
fast fashion brands’ business models (Frei et al., 2020; Vehmas et al., 2018). However, there is
still limited research on how these initiatives are perceived, particularly by Generation Z, and if
the actions have any impact on the CBBE. This study extends the literature and describes how
marketing actions can contribute to sustainability. The paper provides insights on Generation Z
perceptions of the fast fashion industry and how CE initiatives can impact brand equity and thus,
close this gap. By viewing CE initiatives and CBBE together, it gives the literature new insights
on the Generation Z perceptions of fast fashion brands and their impact.

To be concrete, the study provides theoretical contributions along two lines. Firstly, this study
expands the literature regarding Generation Z perceptions toward CE initiatives with empirical
findings and illustrations on what every perception is built on and what factors can strengthen, or
diminish, the perception of fast fashion brands in the context of their CE initiatives. Sijtsema et al.
(2020) and Camacho-Otero et al. (2018) underline in the context of CE, that it is meaningful to
understand consumers’ perceptions and what factors affect them towards sustainable fashion
consumption. This study presents three different perceptions of Generation Z which could
potentially be seen as different consumer segments. Further, the study shows how these have
emerged based on specific aspects the consumers consider important, which have not been covered
in previous literature.

In line with Kim et al. (2021), this study supports that younger consumers have a high willingness
to pay for sustainable products and that purchasing these products eases the bad conscience and
evokes good feelings for the consumers. Moreover, the study contrast Kim et al. (2021) with the
findings that reused and secondhand garments are not necessarily considered to be unhygienic.

54
Rather, the negativity towards reused and recycled garments is based on the perception that the
garments possess inferior quality. As a consequence, this can negatively affect the consumer
perception of fast fashion brands, and thus, negatively impact CBBE. Moreover, this study extends
prior research and applies Generation Z perceptions towards CE initiatives in a new, unexplored
context, which is the fast fashion industry.

Secondly, this study builds theory by looking from a brand-building perspective and how macro-
environmental factors can impact a brand. Macro-environmental factors such as sustainability and
CE are bigger than just the brand itself. They are external to the brand, but still just as important
for brands to consider, in order to know how it impacts the target audience. Although prior
literature has highlighted internal elements of a brand to strengthen the CBBE (Aaker, 1996;
Keller, 1993), scholars have given limited attention to the external factors that can impact the
CBBE. For instance, Aaker (1996) states that CBBE is measured by four dimensions of brand
equity; loyalty, awareness, associations, and perceived quality. This study confirms the importance
of and explores external factors in the form of sustainability that impacts CBBE. From a consumer
perspective it was found that it is not just about the brand’s internal actions, but also about
considering external factors and how these come into play and impact the perception of a brand.
Consequently, this study has explored macro-environmental factors that have an impact on the
CBBE of fast fashion brands. Moreover, these new insights extend the prior literature of Aaker
(1996) and Keller (1993) on how brands can enhance the CBBE.

5.3 Practical Contributions

This study provides meaningful implications for brand managers in the fast fashion industry that
consider implementing, or are already conducting, CE initiatives. Since industries call for guidance
in implementing sustainable strategies (Murray et al., 2017) and cooperation between business and
consumers are needed (Hazen et al., 2017), brand managers must know how to reach their audience
with their sustainability actions. In this regard, our study identifies three emerging perceptions
towards CE initiatives, and therefore, it is important for brand managers to practically understand
how to meet each of them. The findings present that the impact on CBBE is different for different
target audiences, and they are motivated by different things, which is the premise of segmentation,
targeting, and positioning (Dibb & Simkin, 1991). From a brand-building standpoint, this study

55
gives brand managers the ability to see how macro-environmental factors impact each of the
segments with different perceptions. Moreover, these findings will help brand managers within the
fast fashion industry to build their brands and strengthen brand equity features by implementing
CE initiatives.

To be concrete, this study underscores the most important insights brand managers should consider
addressing the needs of the segments with positive, negative, and indifferent perceptions towards
CE initiatives. Therefore, brand managers within the fast fashion industry can use the outcome of
this study as a guiding tool when conducting CE initiatives. Each of the thematic maps that
represent the perceptions’ impact on CBBE can assist fast fashion brands to meet the audience’s
needs. By gaining these insights, brand managers create conditions for sustainable initiatives to be
received positively from the target groups and thus enhancing the CBBE.

Additionally, this study underlines the importance of fast fashion brands communicating their
actions with a reliable approach to the audience. From a managerial standpoint when working with
sustainability, it is important to be completely transparent to not become associated with
greenwashing. If fast fashion brands cannot manage building trust when conducting CE initiatives,
the negative perceptions can adversely impact the CBBE. Therefore, brand managers must
transparently prioritize their communication strategies that reach the different segments to create
value. Because, regardless of how successfully fast fashion brands work with sustainability, they
might end up unsuccessful if they do not manage building trust with their actions to the consumers.

5.4 Limitations
This study delivers many valuable findings, but as with every study, there are some important
limitations to consider. Firstly, the time constraint made the sample size relatively limited to 12
respondents. To deal with this, interviews were conducted until the saturation point was considered
to be reached. Also, the sample selection consists of a narrow age range and slightly more females
than men. However, a larger sample selection would maybe provide more generalizable findings.
Secondly, this study uses purposive sampling which is a non-probability method that holds many
benefits, but also limitations that are important to consider. As the researchers choose the
respondents, one downside to purposive sampling is that researcher bias can impact the results.

56
Additionally, with the non-probability sampling, it is not possible to be sure the sample selection
represents the whole population, as in this case, Generation Z. To mitigate and manage these risks,
each respondent met predetermined criteria in terms of age, gender, and shopping habits of fast
fashion. Lastly, when analyzing the empirical findings, the thematic analysis brought flexibility
when interpreting the considerable amount of data. However, the flexibility of the analysis can
provide different ways to interpret the meanings, which can impact the result.

5.5 Future Research

The study provides possibilities for future research. Firstly, since the study has initiated a
foundation for brand building in the fast fashion context, further research could attempt to measure
and validate the findings in a quantitative manner. Moreover, as fast fashion brands are generally
driven by bottom-line profitability (Joyce et al., 2016), a suggestion is to investigate if the
perceptions of a brand have an impact on the buying behavior of fast fashion brands. Secondly,
although the study has a varied sample selection, further research could include consumers that
covers a larger age range within Generation Z. Hence, that would further increase the
generalizability. Besides this, as the area of CE initiatives in the fast fashion context is limited
today, we encourage future researchers to build upon these findings and study how the emerging
consumer segments should be targeted in order to strengthen the CBBE of fast fashion brands.

57
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APPENDIX

Interview Guide
Instructions to the interviewer

● Explain the purpose of the study. Highlight that we are looking for the respondents’
perceptions, not necessarily their actual behavior and actions.
● Explain the agenda of the interview.
● Describe the concept of circular economy and the meaning of the 3R principles (reduce,
reuse and recycle).
● Ask the respondent to explain the characteristics of fast fashion brands. Fill in the gaps
with information.
● Briefly describe customer-based brand equity and the meaning of the different building
blocks of the model: brand loyalty, brand awareness, brand associations, and perceived
quality.

Part A: Background questions

1. What year were you born?

2. How many purchases of fast fashion brands do you make in one year?

Part B: Perceptions towards fast fashion and CE initiatives - questions related to RQ1

3. What factors are important to you when it comes to buying clothes from a fast fashion
brand?
4. Can you reflect on your thoughts regarding environmental issues in general?
a. How is it reflected in your buying behavior when it comes to clothes?
5. What is your perception of the fast fashion industry when it comes to ecological
sustainability?
6. What is your opinion towards fast fashion brands that are implementing circular economy
initiatives in their business model? (Reduce, Reuse and Recycle)
a. How do you perceive the reliability of these initiatives?

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 7. If a fast fashion brand started selling reused clothes, would you be interested in
consuming these garments? Elaborate on your answer.

Part C: The impact on CBBE - questions related to RQ2

Brand loyalty
8. Can you mention a fast fashion brand that you often purchase from? (=Brand X)
9. Can you reflect on whether you consider yourself loyal to Brand X?
10. If Brand X would create clothes made of recycled materials, what would you think if
these were more expensive than non-recycled clothes?
a. Would the material affect your satisfaction with the garment? In what way then?

Brand Awareness
11. How should a fast fashion brand act in order to capture your attention?
a. What makes you remember a certain fast fashion brand?
12. Can you reflect on what differentiates Brand X from other brands in the same category?

Brand Associations
13. Can you reason about whether Brand X provides good value for the money in comparison
to competitors?
14. If you think about a hypothetical fast fashion brand that works with CE initiatives, how
would you describe that kind of brand with three words?

Perceived Quality
15. Based on your own experiences, how do you perceive the quality of garments from fast
fashion brands?
a. How would you perceive the quality if the garments were made of recycled
materials?
16. What characterizes a leading brand within the fast fashion industry, according to you?
17. According to you, how important is it that a leading fast fashion brand works with CE
initiatives and ecological sustainability?

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Closing Questions
18. Can you mention one of your favorite fast fashion brands?
19. Can you describe the brand as a person that enters the room?
a. How does it look?
b. What does it wear?
c. What attitude has it?
d. What values does it have?
e. What would it feel and believe?

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