The role of price transparency in shaping consumers' willingness to pay for sustainable clothing

Consumer willingness to pay is a widely addressed topic in the sustainability research spectrum, and sustainable clothing stands as a pressing issue around the globe due to environmental concerns. However, the tendency is still less towards willingness to pay for sustainable clothing due to its prem...

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Main Author: Medagedara, Malshani
Other Authors: Jyväskylän yliopiston kauppakorkeakoulu, Jyväskylä University School of Business and Economics, Jyväskylän yliopisto, University of Jyväskylä
Format: Master's thesis
Language:eng
Published: 2025
Subjects:
Online Access: https://jyx.jyu.fi/handle/123456789/103558
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author Medagedara, Malshani
author2 Jyväskylän yliopiston kauppakorkeakoulu Jyväskylä University School of Business and Economics Jyväskylän yliopisto University of Jyväskylä
author_facet Medagedara, Malshani Jyväskylän yliopiston kauppakorkeakoulu Jyväskylä University School of Business and Economics Jyväskylän yliopisto University of Jyväskylä Medagedara, Malshani Jyväskylän yliopiston kauppakorkeakoulu Jyväskylä University School of Business and Economics Jyväskylän yliopisto University of Jyväskylä
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description Consumer willingness to pay is a widely addressed topic in the sustainability research spectrum, and sustainable clothing stands as a pressing issue around the globe due to environmental concerns. However, the tendency is still less towards willingness to pay for sustainable clothing due to its premium prices. Therefore, I intend to identify how price transparency shapes consumer willingness to pay for sustainable clothing when the approximate manufacturing cost is disclosed. The Theory of Planned Behavior has been utilized as a guideline to understand how purchase intentions are formed and shaped in the pre- and post-cost disclosure situations. The qualitative approach was considered, and 20 semi-structured interviews were conducted. Interviewees were represented from 10 different countries. Results indicate that perceived price disparity between the retail price and the approximate cost lowers the consumers’ willingness to pay for sustainable clothing due to an increased skepticism towards sustainability claims and the premium prices. Distrust has been identified as a mechanism, and altogether, the identified factors and the mechanism address” how and why” price transparency in sustainable clothing has decreased consumers’ willingness to pay compared to the pre-cost disclosure. These findings further contributed to building a new framework by extending the Theory of Planned Behavior in a sustainable context, price transparency as a major determinant towards willingness to pay. The practical implications are discussed in order to enhance sustainable purchasing along with ethical pricing practices.
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However, the tendency is still less towards willingness to pay for sustainable clothing due to its premium prices. Therefore, I intend to identify how price transparency shapes consumer willingness to pay for sustainable clothing when the approximate manufacturing cost is disclosed. The Theory of Planned Behavior has been utilized as a guideline to understand how purchase intentions are formed and shaped in the pre- and post-cost disclosure situations. \n\nThe qualitative approach was considered, and 20 semi-structured interviews were conducted. Interviewees were represented from 10 different countries. Results indicate that perceived price disparity between the retail price and the approximate cost lowers the consumers\u2019 willingness to pay for sustainable clothing due to an increased skepticism towards sustainability claims and the premium prices. 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spellingShingle Medagedara, Malshani The role of price transparency in shaping consumers' willingness to pay for sustainable clothing Master's Degree Programme in International Business and Entrepreneurship
title The role of price transparency in shaping consumers' willingness to pay for sustainable clothing
title_full The role of price transparency in shaping consumers' willingness to pay for sustainable clothing
title_fullStr The role of price transparency in shaping consumers' willingness to pay for sustainable clothing The role of price transparency in shaping consumers' willingness to pay for sustainable clothing
title_full_unstemmed The role of price transparency in shaping consumers' willingness to pay for sustainable clothing The role of price transparency in shaping consumers' willingness to pay for sustainable clothing
title_short The role of price transparency in shaping consumers' willingness to pay for sustainable clothing
title_sort role of price transparency in shaping consumers willingness to pay for sustainable clothing
title_txtP The role of price transparency in shaping consumers' willingness to pay for sustainable clothing
topic Master's Degree Programme in International Business and Entrepreneurship
topic_facet Master's Degree Programme in International Business and Entrepreneurship
url https://jyx.jyu.fi/handle/123456789/103558 http://www.urn.fi/URN:NBN:fi:jyu-202506165370
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