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3309. Impact of consumers’ environmental awareness on inventory decisions for a retailer in the textile industry
Invited abstract in session TB-50: Retail Operations and Marketing, stream Retail Operations.
Tuesday, 10:30-12:00Room: M2 (building: 101)
Authors (first author is the speaker)
| 1. | Martin Waitz
|
| Institute for Production Management, WU Vienna University of Economics and Business, Austria | |
| 2. | Lena Silbermayr
|
| Department of Information Systems and Operations, WU Vienna University of Economics and Business | |
| 3. | Danja Sonntag
|
| Lund University |
Abstract
Textile waste is a crucial problem for today’s society. The majority of it is generated by the consumer and does not end up as separate waste, but is mixed with residual waste and then burned for energy recovery. To obtain recycled textiles, the operational processes required (e.g., collection and sorting) are still costly compared to using virgin materials, resulting in higher production costs for greener products.
The increase in recycled materials for textiles therefore depends on consumers' willingness to pay a premium for more environmentally friendly products. While some customers may be willing to pay such a premium, others may focus solely on the price of a textile. Understanding these customer segments, particularly a customer's individual willingness to pay for a greener product, will benefit a retailer that offers multiple substitutable products when making inventory decisions.
In this work, we investigate the influence of consumers’ environmental awareness when purchasing textiles and its impact on inventory decisions of a retailer. Therefore, an empirical study including a choice-based conjoint analysis is carried out to reveal consumers’ preferences and willingness-to-pay for ‘greener’ textiles in Austria. These empirical findings are used by a newsvendor model to derive inventory decisions of a retailer, which are evaluated both economically and ecologically.
Keywords
- Inventory
Status: accepted
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