The Impact of Economic Incentives on the Purchase Behavior of Recycled Fashion and Footwear

This study investigates the impact of economic incentives on the purchase behavior of recycled fashion and footwear in Vietnam, addressing a critical gap in sustainable consumption research within emerging markets. Employing a mixed-methods approach, including a large-scale survey (n=1,023) and field experiments across 120 stores, we examine the effectiveness of various incentive types: discounts, loyalty programs, and government subsidies. Our findings reveal that while price discounts drive immediate sales increases (28.3% volume increase), loyalty programs foster superior long-term engagement (23.5% increase in repeat purchases) and higher average order values (31.7% increase). Government subsidies, particularly when combined with educational initiatives, also prove effective (27.3% sales volume increase). The study identifies key moderating factors, including environmental consciousness, age, and urban-rural location, which significantly influence the impact of these incentives. By providing empirical evidence on the nuanced effectiveness of economic incentives in promoting sustainable fashion choices, this research offers valuable insights for retailers, policymakers, and sustainability advocates. The findings contribute to bridging the intention-action gap in sustainable consumption and provide a foundation for developing targeted strategies to promote recycled fashion in emerging markets.