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Sustainability 2017, 9(6), 920; doi:10.3390/su9060920

Sustainable Product Strategy in Apparel Industry with Consumer Behavior Consideration

1
Business School, University of International Business and Economics, Beijing 100029, China
2
Rongcheng Campus, Harbin University of Science and Technology, Heilongjiang 150080, China
*
Author to whom correspondence should be addressed.
Academic Editor: Bin Shen
Received: 19 April 2017 / Revised: 17 May 2017 / Accepted: 23 May 2017 / Published: 31 May 2017
(This article belongs to the Special Issue Sustainability Issues in the Textile and Apparel Supply Chains)
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Abstract

The article attempts to analyze sustainable product strategy in apparel industry specifically addressing a firm that is considering launching a sustainable product partly made from recycled materials. There are two types of consumers under consideration, environmentally conscious and regular consumers, as they have different perceived values for the sustainable products. The article provides an analytical model aimed to identify conditions under which a firm could benefit from adopting sustainable product strategy. The level of sustainability is determined by the trade-off between profitability and costs occurred and if more consumers value sustainable products, the firm will increase its sustainable level and get a higher profit. This is because of a combination effect of an increasing marginal profit and demand expansion. Moreover, the model has been further extended to address a situation where the firm could manage consumer segmentation. Depending on parameter settings, the firm may target different consumer segments and there is always a threshold of cost for managing consumer segments. When converting regular consumers to be environmentally conscious is not costly, the firm will convert all consumers to be environmentally conscious with great efforts; otherwise, the firm will convert part of consumers to be environmentally conscious. View Full-Text
Keywords: sustainability; social responsibility; market segmentation; consumer behavior sustainability; social responsibility; market segmentation; consumer behavior
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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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Yang, L.; Dong, S. Sustainable Product Strategy in Apparel Industry with Consumer Behavior Consideration. Sustainability 2017, 9, 920.

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