The interaction effect of fashion retailer categories on sustainable labels: the role of perceived benefits, ambiguity, trust, and purchase intention

While fashion brands, manufacturers, and third-party agencies have long used eco-labels to inform consumers about their sustainability efforts, this method is now becoming popular among retailers, who are developing and applying their own eco-labels to their products. Yet, there is limited research regarding the impact of fashion retailers’ sustainable labels on consumer perception and purchase intention. The present research addresses this concern and finds that consumer behavior varies depending on whether a retailer creates separate categories for sustainable products and uses more detail in sustainable labeling. Building on categorization and signal theories, this study finds that in the presence (vs. absence) of a sustainable category, a specific (vs. general) sustainable label mitigates ambiguity and increases perceived consumer benefits, trust in retailer, and purchase intention. Findings extend previous research on specificity of sustainable labels to fashion retailing and demonstrate important practical implications of sustainable categorization for retailers, especially those in ecommerce.