Necessary and sufficient values: A dual perspective on consumers’ willingness to pay premiums and purchase intentions for circular fashion

Abstract

Circular fashion is gaining prominence, turning fast fashion into enduring pieces. Despite their ecological appeal, these products often inherit higher prices, requiring consumers to be willing to pay a premium to form purchase intentions. The Theory of Consumption Values provides a framework for understanding the influence of product utility on consumer behavior. However, while most studies have focused on ‘sufficient’ (should-have) values that can be substituted, they often overlook ‘necessary’ (must-have) values that are indispensable for consumers to pay more and intend to purchase circular fashion. To bridge this gap, our study employs Structural Equation Modeling (SEM) to identify values that increase consumers' willingness to pay a premium and purchase intentions. Additionally, Necessary Condition Analysis (NCA) determines the required values for achieving these outcomes. We surveyed 272 participants to assess the impact of epistemic, emotional, social, functional, identity, and environmental values on consumer choice. Our results indicate that emotional values consistently influence willingness to pay a premium and purchase intentions from both sufficiency and necessity perspectives. Other values were either sufficient or necessary for these intentions. This nuanced perspective emphasizes how consumption values shape distinct consumer behaviors. As the first study to integrate SEM and NCA in evaluating consumption values for circular fashion, our research underscores consumption values that drive consumer willingness to pay a premium and purchase intentions, making these behaviors achievable. The findings offer insights for retailers and policymakers to promote circular fashion and contribute to the academic discourse on bridging the green gap.