The influence of ethical consumerism on consumers’ perceptions and purchasing intent of European luxury fashion
Creators: name: Mörtl, Jessica Victoria
Publisher: name: ZHAW Zürcher Hochschule für Angewandte Wissenschaften
Year: 2024
Subjects: 658.408: Sicherheitsmanagement, Umweltmanagement
658.8: Marketingmanagement

description: In recent years, there has been a growing emphasis on ethical consumption and corporate social responsibility (‘CSR’), driven by increased scrutiny of companies’ alignment with societal values, especially regarding labor practices and environmental impacts. This rise in ethical consumerism, particularly in developed countries such as Switzerland, has led consumers to favor products that reflect their values and boycott unethical businesses. Notably, ethical consumerism is beginning to expand beyond conventional goods into luxury markets. Accordingly, this master’s thesis explored the impact of ethical consumerism on perceptions and purchasing intentions towards European luxury fashion companies, addressing a gap in the existing literature. 
To investigate the research topic, a quantitative research method with a deductive approach was used. In line with this, a conceptual framework was developed based on existing research and primary research was conducted using a self-completion survey questionnaire, designed to assess the influence of ethical consumerism on luxury consumption and luxury brand perception in Switzerland. 
The findings of the survey indicate that, while ethical consumerism is becoming increasingly significant in the broader market, its impact on luxury consumption in Switzerland remains limited. Out of several ethical considerations, only fair labor practices and cruelty-free products seem to have an impact on luxury consumers’ purchasing decisions and brand perceptions. However, this impact, while statistically significant, remains relatively modest. Furthermore, a comparison between consumer perceptions and the actual environmental, social, and governance (‘ESG’) performance reveals a notable discrepancy, indicating that consumers expect higher ethical business practices from European luxury goods companies along with greater levels of transparency. 
In conclusion, the study uncovered that ethical consumerism exerts only a slight influence on the brand perception and purchasing intent of European luxury goods companies in Switzerland. Nevertheless, managers should continue to incorporate and communicate ethical business practices, as the importance of ethical considerations is likely to grow in the future. However, they must keep in mind that these CSR and ESG practices should align with traditional luxury attributes, such as high quality and craftsmanship, allowing them to build trust and enhance brand perception. Notably, this master’s thesis is not without limitations, and these should be considered when interpreting the results. The most significant limitations are the small sample size and survey response rate of 17.16%, which may not fully represent the broader population of luxury consumers in Switzerland. Consequently, the findings may not be generalizable, and there is a possibility of response bias. Additionally, the study relied primarily on quantitative methods, which, while useful for identifying trends, do not capture the full complexity of consumer motivations and perceptions. 
To address these limitations, future research should focus on enhancing the representativeness of this study’s findings by expanding the sample size and regional diversity. Additionally, longitudinal studies should be conducted to track changes in consumer attitudes over time, providing insights into the evolution of ethical consumerism and its long-term impact on luxury brand perceptions. Lastly, future research should incorporate qualitative methods, such as interviews, to gain a deeper understanding of the motivations behind ethical consumer behavior and luxury consumption.