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Country of Origin Impact on Consumer Perception of Value in Fast Fashion

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Country of Origin Impact on Consumer Perception of Value in Fast Fashion University of Nebraska - Lincoln DigitalCommons@University of Nebraska - Lincoln Textiles, Merchandising and Fashion Design: Textiles, Merchandising and Fashion Design, Dissertations, Theses, & Student Research Department of 12-2019 Country of Origin Impact on Consumer Perception of Value in Fast Fashion Katherine Walter University of Nebraska - Lincoln, [email protected] Follow this and additional works at: https://digitalcommons.unl.edu/textilesdiss Part of the Fashion Business Commons, and the Industrial and Product Design Commons Walter, Katherine, "Country of Origin Impact on Consumer Perception of Value in Fast Fashion" (2019). Textiles, Merchandising and Fashion Design: Dissertations, Theses, & Student Research. 15. https://digitalcommons.unl.edu/textilesdiss/15 This Thesis is brought to you for free and open access by the Textiles, Merchandising and Fashion Design, Department of at DigitalCommons@University of Nebraska - Lincoln. It has been accepted for inclusion in Textiles, Merchandising and Fashion Design: Dissertations, Theses, & Student Research by an authorized administrator of DigitalCommons@University of Nebraska - Lincoln. COUNTRY OF ORIGIN IMPACT ON CONSUMER PERCEPTION OF VALUE IN FAST FASHION by Katherine Walter A THESIS Presented to the Faculty of The Graduate College at the University of Nebraska In Partial Fulfillment of Requirements For the Degree of Master of Science Major: Textiles, Merchandising and Fashion Design Under the Supervision of Professor Jennifer Jorgensen Lincoln, Nebraska December, 2019 COUNTRY OF ORIGIN IMPACT ON CONSUMER PERCEPTION OF VALUE IN FAST FASHION Katherine Elizabeth Walter, M.S. University of Nebraska, 2019 Advisor: Jennifer Jorgensen With fast fashion growing rapidly, insight onto consumers perception of the value for the country of origin in this sector of the retail industry is a topic that needs to be delved into deeper. While there are studies over the impact of country of origin and fast fashion separately, the correlation between these two dimensions has yet to be reviewed. The purpose of this study is to identify consumers perception of the overall value of fast fashion merchandise based on country of origin. Through a questionnaire, participants were asked open and closed-ended questions about specific factors of value based on country of origin in apparel products. These factors included perceived innovativeness, willingness to buy, perceived price, country familiarity, and quality. Through Amazon Mechanical Turk, participants were recruited to take this virtual survey. Because of the popularity of fast fashion with Millennials and their growing purchasing power, the outcomes of this study are tailored to this generation. The implications of this study can be used throughout the retail and fashion industries. When decisions of outsourcing or insourcing products are being made, understanding how the country of origin impacts their perception of value will provide critical information companies and brands in all retail sectors can use. TABLE OF CONTENTS CHAPTER 1 .................................................................................................................. 1 INTRODUCTION ............................................................................................................. 1 Fast Fashion History ................................................................................................ 2 Global Effect ............................................................................................................ 3 Fast Fashion Around the World ................................................................................ 5 Fast Fashion Revenue ............................................................................................... 5 Fast Fashion Made in America ................................................................................. 6 Economic Impact ...................................................................................................... 7 Fast Fashion Future ................................................................................................. 8 Disadvantages of Fast Fashion ................................................................................. 9 COO ......................................................................................................................... 9 STATEMENT OF CHANGES IN FAST FASHION ................................................................ 10 STATEMENT OF PROBLEM ........................................................................................... 10 DEFINITION OF TERMS ................................................................................................ 11 PRIOR RESEARCH ........................................................................................................ 12 SIGNIFICANCE OF THE STUDY ...................................................................................... 13 CHAPTER 2 ................................................................................................................ 13 LITERATURE REVIEW .................................................................................................. 13 Fast Fashion and Sustainability .............................................................................. 14 COO Effect ............................................................................................................. 14 COO Labeling ........................................................................................................ 16 Quality Perceptions ................................................................................................ 17 COO and Consumer Perception .............................................................................. 19 Consumer Purchasing Decisions ............................................................................ 21 Perceived Innovativeness of Product ....................................................................... 22 Consumer Behavior ................................................................................................ 23 COO Impacting Perceived Price ............................................................................. 23 Design and Workmanship Influence on Perceptions of COO ................................... 26 Differences in Social Class Perceiving COO ........................................................... 27 COO in Developing Countries ................................................................................ 28 COO Impact on Purchasing Behavior in Luxury Brands ......................................... 29 Millennials.............................................................................................................. 31 Millennials Perception of COO ............................................................................... 32 HYPOTHESES .............................................................................................................. 33 THEORY ..................................................................................................................... 34 CHAPTER 3 ................................................................................................................ 35 METHODOLOGY .......................................................................................................... 35 Procedure ............................................................................................................... 37 Data Analysis ......................................................................................................... 40 CHAPTER 4 ................................................................................................................ 41 RESULTS..................................................................................................................... 41 Section 1: Analysis of Millennials ........................................................................... 42 Perception of Value ........................................................................................ 42 Perceived Innovativeness ............................................................................... 43 Willingness to Buy........................................................................................... 44 Perceived Price ............................................................................................... 44 Familiarity of Country’s Product .................................................................... 45 Perceived Quality............................................................................................ 46 Themes ............................................................................................................. 47 Section 2: Analysis of People Aged 36 and Older .................................................... 47 Perception of Value ......................................................................................... 47 Perceived Innovativeness ................................................................................ 48 Willingness to Buy............................................................................................ 48 Perceived Price ................................................................................................ 49 Familiarity of Country’s Product ..................................................................... 50 Perceived Quality ............................................................................................. 50 Themes.............................................................................................................
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