How do crazy rich Asians perceive sustainable luxury? Investigating the determinants of consumers’ willingness to pay a premium price

Abstract

Motivated by the increasing media coverage of environmental disasters and growing evidence of humans’ detrimental impacts on the natural environment, the key aim of this study was to examine consumer interest in buying sustainable luxury products. Rooted in the Value-Belief-Norm (VBN) theory, a research framework incorporating pro-environmental self-identity (PSI), consumer pro-environmental values (CPV), engagement, and willingness to pay a premium price (WPP) was proposed. To better understand the sustainable behavior of consumers, this study modelled myopia as a personality trait that moderates the aforementioned relationships. Partial least squares path modelling (PLSPM) was employed to analyze data collected from 296 Chinese consumers who had purchased luxury fashion products. The results highlighted the influential role of CPV in shaping both consumer engagement and WPP, surpassing the impact of PSI. Also, the study established the positive effect of engagement on WPP and confirmed its mediating role in the relationship between CPV and WPP. The incorporation of myopia as a moderator further enhanced the explanatory power of the VBN theory in understanding sustainable consumption evaluations. The findings revealed that the positive links between PSI, CPV, engagement, and WPP were particularly pronounced among non-myopic consumers, suggesting that a clear vision of long-term consequences strengthens the connections between these constructs. These findings offer valuable insights to both academics and practitioners, particularly in the realm of luxury fashion brands within Chinese culture. They provide a foundation for designing targeted marketing communication strategies that effectively leverage and cultivate consumers' pro-environmental self-identities and values. By aligning brand messaging with these values, luxury fashion brands can enhance consumer engagement and foster a willingness to invest in sustainable products. Ultimately, this study contributes to the growing body of knowledge on sustainable consumption and offers practical implications for promoting environmentally responsible choices in the luxury fashion industry.