Journal of International Business Research and Marketing

Volume 1, Issue 2, January, 2016

jo u r n a l h o me p a g e : w w w. res ea r ch l ea p . co m

Impact of a Fashion fTRACE App on the Perception of Sustainability

Jochen Strählea, Franziska Girwertb
ab
International Fashion Management, Reutlingen University, Reutlingen, Germany

ABSTRACT

2016Research Leap/Inovatus Services Ltd. The purpose of this paper is to examine the relationship between the consumers’ perception of
All rights reserved. sustainability and the application of a QR-code in stores with the focus on the information
searching behavior regarding sustainable aspects. An online questionnaire was conducted with
fashion students at Reutlingen University: in total, 65 students participated in the survey. Paired
samples t-test and other statistical analyses were applied to test research questions. Apart from
this, the research paper is based on a literature review. Furthermore, the decision was taken to
Keywords: use a projective method in the form of a dummy fashion fTRACE website. Key findings of the
Customer perception survey are that participants give sustainable aspects a higher importance with a QR-code than
Sustainability without one. Participants who prefer a product with detailed information experience a ―positive
Customer behavior shopping feeling‖ when provided with transparency via a QR-code. ―Origin‖, ―production‖ and
Multichannel
―quality‖ were rated of higher importance by those participants. These findings suggest that,
transparency provided through the application of a QR-Code in stores influences the consumers’
QR-Code
perception of sustainability. Due to the small sample size of participants (65) in the study,
Information searching
findings of this research not generalizable to a larger population. This paper focused on the
Transparency
consumers’ information searching behavior regarding sustainable aspects, limiting its findings to
Traceability
impacts on perception of sustainability. Further research is therefore recommended.

1. Introduction  To investigate the impacts of transparency provided by

a QR-Code on consumers’ perception of sustainability when
"I created the brand because transparency was what I was looking preferring a product with detailed information.
for as a consumer but couldn't find. I'm using it as a tool for
change. […]" (Borromeo, 2013). This statement by the Belgium The method chosen to give an insight at the beginning of this
fashion designer Bruno Pieters demonstrates the need for paper is a literature review providing an overview of the state of
providing more information to the consumers. Many fashion the art concerning sustainability and the multichannel
brands’ primary purpose still is to maximize profit and to environment as well as regarding transparency and traceability in
produce clothes in low-waged countries without providing the fashion industry. The literature review is based on different
information about their activities along the supply chain (Payton, sources ranging from books to scientific research papers to find
2013). Therefore, a development towards greater transparency is appropriate academic findings. Furthermore, a projective method
indispensable. The question arises, how companies are able to in form of a dummy fashion fTRACE website was used serving
implement greater transparency along the entire value chain and as a basis for the survey and visualizing the application of a QR-
what kind of information regarding sustainable aspects code in stores. An online questionnaire was conducted with 65
consumers are searching for in fashion products. As consumers fashion students at Reutlingen University to examine how a QR-
become more aware of sustainability, they also expect detailed Code helps to ensure greater transparency. A paired sample t-test,
product information provided by companies (Liegl, 2014). an independent t-test and a chi-square test were applied to test the
Therefore, the issues of sustainability and transparency in fashion research objectives.
business are a topic of major debate in contemporary research.
The paper addresses the specific research objective to investigate The second chapter firstly deals with the definition of the terms
the relationship between consumers’ perception of sustainability sustainability and sustainable fashion followed by the importance
and the information searching behavior regarding sustainable of the issue in today’s society. Afterwards the consumers’
aspects. In order to gain a profound understanding of perception of sustainable fashion and their information demand
transparency provided by a fashion fTRACE app and its impact will be demonstrated in order to find out the consumers’
on perception of sustainability a survey was conducted, which knowledge, attitude and behavior toward sustainability. The
addresses the following research objectives: following chapter commences with a description of the
 to compare the consumers’ degree of importance for multichannel-environment and its importance for the retail
information searching regarding sustainable aspects in industry before the changing customer behavior will be
general with and without a QR-code (Quick Response Code) explained. After that, the information searching behavior in
 to examine the consumers’ degree of importance for general and via smartphone will be described, followed by the
information searching regarding sustainable aspects with a consumers’ buying decision-making process. The next chapter
QR-code when preferring a product with detailed information provides background information about the fTRACE app as wells
8 Journal of International Business Research and Marketing

as its functionality compared to similar apps. Additionally, the apparel has not been well promoted‖ (Shen et al., 2012, p.238).
current situation of transparency and traceability in fashion Even in 2015, only five percent of consumers feel knowledgeable
business as well as best practice examples are shown. At the end about ethical fashion and textile brands (Thieme, 2015).
of this chapter the dummy fashion fTRACE app will be According to Hill (2012), the majority of young consumers
explained, on which the online questionnaire is based. The last define sustainability in general as creating durable products.
chapter of this research paper analyses the online questionnaire in Concerning the apparel industry, long-lasting products, economic
order to examine the impact of transparency on consumers’ health of the business and environmental concern were perceived
perception of sustainability through the application of a QR-Code as the most important issues by respondents (Hill Hyun‐Hwa
in stores. A subsequent discussion refers back to the research Lee, 2012). Interestingly ―wash care and laundering‖ was listed
question. Finally, conclusions and recommendations summarize as least important sustainable practices by respondents (Hill
all gained findings of this research paper. Hyun‐Hwa Lee, 2012). However, this factor has a main
environmental impact on the apparel industry, which further
2. Literature Review shows the consumers’ lack of knowledge about impacts on the
2.1. Sustainable Fashion environment (Allwood, 2006; Hill Hyun‐Hwa Lee, 2012). Hill’s
study also shows the link between knowledge and its perceived
In order to assess the consumers’ perception of sustainable effectiveness, which means how provided information can
fashion it is important to begin with the definition of the terms influence the way consumers perceive something as important
sustainability and sustainable fashion. In 1987 the most common (Dickson, 2000). The more knowledge they have on a specific
definition of sustainable development was published by the issue, the more they perceive it as important (Hill Hyun‐Hwa
―World Commission on Environment and Development‖ Lee, 2012). Regarding Kozar's and Hiller's Connell (2013) study,
(WCED) in ―Our Common Future‖, also known as the respondents felt more knowledgeable about environmental issues
Brundtland report. The report describes sustainable development than on social issues concerning the apparel industry (Kozar &
as ―development which meets the needs of the present without Hiller Connell, 2013). Contrarily, Shen et al. found preventing
compromising the ability of future generations to meet their own sweatshop labor is more important to consumers than protecting
needs.‖ (Drexhage & Murphy, 2010). Since the ―United Nations the environment, despite the fact that they had little knowledge
Conference on Environment and Development" (UNCED) 1992 on the sweatshop situation (Shen et al., 2012). This demonstrates,
in Rio de Janeiro, the term sustainable development was given on the one hand, limited knowledge and misconception of
political salience (Drexhage & Murphy, 2010). consumers regarding sustainability, since they define it simply
without describing it in detail or with examples (Carew &
Sustainable fashion can be defined as fashion clothing that is Mitchell, 2002; Gam & Banning, 2011). On the other hand,
produced with a longer product life cycle under fair trade consumers’ perception of importance for certain sustainable
conditions. Furthermore, a sustainable fashion concept considers issues differs with regard to the respondent sampling group.
a local and ethical production system as well as eco-friendly or Therefore, these findings are not generalizable, since different
recycled materials to avoid destroying the environment or target groups have different needs. Hence, companies have to
exploiting workers (Fletcher, 2008; Joergens, 2006). Often the acquire an understanding of their customers’ attitudes and
terms ―green fashion‖ and ―ethical fashion‖ are used in the same communicate the value of sustainability in order to build trust
context as sustainable fashion. While ―green fashion‖ focuses on (Thieme, 2015).
the utilization of recycled materials and biodegradable fibers,
―ethical fashion‖ mainly relates to produce under fair labor Studies also show, that even though consumers have in general a
conditions (Shen, Richards, Lui, & Feng, 2013). ―Both of these positive attitude toward sustainable products, they finally do not
dimensions together make the sustainable fashion concept more apply this attitude into ethical fashion consumption (Niinimäki,
comprehensive and richer in scope‖ (Shen et al., 2013). 2010; Solomon & Rabolt, 2004). One reason for this so called
In times of globalization, climate change and increasing attitude-behavior gap could be based on the high amount of
environmental problems, facing sustainable issues has become fashion products produced in developing countries which results
more and more important, which also affected the fashion and in uncertainness by consumers. This indicates that the more
textile industry (Jefremow, 2013). Widespread and unending information is provided, the more knowledgeable consumers are,
information through digitalization, strengthens the customers’ the better they can make ethical judgments and buying decisions
awareness of social and environmental disasters in the fashion (Joergens, 2006). By increasing transparency of production and
industry (Bhaduri & Ha-Brookshire, 2011; Williams & Page, manufacturing processes, companies ensure more confidence for
2011). This underlines the impact of sustainable fashion on purchasing sustainable products. Through their goodwill and
consumers’ perception and purchase behavior, which will be reputation in terms of sustainability, consumers’ are more likely
shown in the following chapter. to alter their attitudes and behaviors. Subsequently, this results in
a greater awareness of sustainable products and sustainability
2.2. Customer Perception of Sustainable Fashion (Shen et al., 2012.). In order to close the attitude-behavior gap the
provided information has to satisfy the factors of appropriate
Firstly, it is necessary to examine how customers define and what content and timing (Thøgersen & Schrader, 2012).
they know about the social and environmental side of
sustainability in the apparel industry. A study by Shen et al. 2.3. The Multichannel Environment
(2012) has found that consumers want to support sustainable
fashion businesses and are willing to pay a higher price for it, but 2.3.1 Changing Customer Behavior
they have a lack of knowledge about this issue. Further, this Due to technological developments and increasing consumer
study has shown that nearly 90% of the participants had never information demand, multi-channel-retailing is currently the most
purchased ethical fashion nor they had knowledge of buying it. important (r)evolution in the retail business (Spannuth, 2012).
Additionally, they could not name any ethical fashion brand Neither in literature nor in practice, can a consistent definition of
(Shen et al., 2012). ―This result indicates that ethical fashion ―multi-channeling‖ be found. However, it can be described as the
9 Journal of International Business Research and Marketing

parallel application of different sales channels without well. More than 40% of these shops implemented ―Click &
considering channel integration. One step further takes it the Collect‖ as well as ―in store-return – and order‖. With the aid of
concept of ―cross-channel-retailing‖, which consistently links all ―Click & Collect‖ more than 65% of these retailers generate a
channels together and creates a seamless shopping experience. growth in sales of almost 20% through impulse buying (EHI
―Omni-channel-retailing‖ means when consumers are able to Retail Institute, 2015). Additionally, multi-channel-customers are
apply all channels parallel through the complete integration in more profitable for retailers, since they spend almost 30% more
each buying stage. Customers are enabled to switch between all than single-channel-customers (Thomas & Sullivan, 2005; T-
channels at any time, e.g. scanning a barcode of a retailer at the Systems, 2013; Venkatesan, Kumar, & Ravishanker, 2007).
POS in order to obtain further product information (Schramm-
Klein et al., 2014). 2.3.2 Information Searching Behavior

In times of the internet, consumers can decide where and when Consumers research online in order to purchase afterwards
they want to make a purchase. Due to the fast expansion of the offline, also known as the ―ROPO-Effect‖, which shows how
internet, the online commerce is one of the channels with the strong both channels influence each other. 48% of all online
highest potential. While the e-commerce sales volume has more researched fashion products where purchased offline, whereof
than triplicated from 12 billion € in 2007 to 38 billion € in 2013, 11.7% are based on researches through the online-shop of the
the growth in sales of physical stores is less than one percent. same supplier; these purchases made up 17.2% of the sales
However, the German stationary retail with sales of 457 billion € volume in physical stores. The interdependency is even more
in 2014 still represents an important purchase channel. distinctive between online researches and purchases via print
Furthermore, stationary retailer who also sell their products catalogs (29.9%), which generated 35.2% of the sales volume of
online are with more than 30% of the online sales volume an printed catalogs (Bruce, 2012; Zaharia, 2012).
important online-player (Reinartz, 2015). Also, the sales volume
generated through mobile commerce is expected to increase from Another study shows, that nearly 40% of respondents indicated to
20% of online retail sales in 2014 to more than 30% by 2020 research online first and then purchase in stores. The prior-
(Heinemann & Gaiser, 2015). ranking ways for information search are search engines (80%)
and large shopping platforms e.g. Amazon (72%), followed by
With regard to the German market, three out of four consumers price comparison sites (48%) in 2014. In contrast, apps are used
use the internet; 73% of them make purchases in online shops only by one-fifth. 68% of respondents already used their
(Reinartz, 2015). Almost every person under the age of 29 has a smartphone for product information searches at the POS in 2014.
smartphone. 20% of these consumers purchase via their Aspects such as price (92%), availability (80%), followed by
smartphone, 90% at least once a month. In contrast, 60% of the product features (86%) or consumer ratings (69%) have been
silver surfers have a smartphone, whereof only 4.4% buy a ranked higher than aspects regarding sustainability (47%) by
product with their smartphone (ECC Köln, 2015). While more those respondents. However, 83% of respondents would like to
than one third of the young online shoppers search for receive more detailed information on product features concerning
information via their smartphone, only 7% of the silver surfers do local offers (Heinemann & Gaiser, 2015) Also, GS1 Germany
it, since they are scared of insufficient data security (ECC Köln, found out ,that nearly half of consumers prefer a product when
2015). Every sixth online purchase is executed through impulse provided with detailed information (GS1 Germany, 2013). Since
buying, which emphasizes the importance of emotions and 45% of consumers perceive barcode scanning as the greatest
inspiration given in online retailing (ECC Köln, 2015). improvement to obtain further product information, provided
information needs to be reliable and trustworthy (GS1 Germany,
More than 50% of the German population see themselves as n.d.). This shows how little attention sustainability is paid to by
traditional stationary retail shoppers, while smart natives prefer consumers, compared to other aspects. Providing reliable
both online and offline shopping (65%). Almost 70% of them information could create awareness of giving sustainable aspects
find ―instore-return‖ of products, which have been purchased a higher importance and therefore ensures customers to pay more
online, very important. Online and offline redeemable ―coupons attention to sustainable aspects.
and special offers‖ are also very relevant, followed by ―online
notification of product availability‖ in stores (ECC Köln & As mentioned before consumers research online for product
hybris GmbH, 2014). 58% welcome ―same day delivery‖ and information and price comparisons in order to purchase
digital service promotions e.g. smartphone apps in stores in order afterwards offline. Technological developments lead to unending
to gain product information (INTERNET WORLD, 2015). information provided through the internet, whereas the classical
buying-decision process changed strongly. Figure 1 demonstrates
Consumers expect consistent Omni-channel-services in order to the steps of the classical buying-process, where consumers select
switch from one channel to another one during the buying and purchase products of the same supplier. Here the ―Point of
process (Schramm-Klein et al., 2014) Therefore offline- and decision‖ (POD) takes place at the ―Point of Sale‖ (POS).
online-channels have to be linked to each other such as to satisfy
the consumers’ needs and their growing information demand
(Bruce, 2012). While two out of three online retailers use several
channels, online pure player represent 30% of them. More than
60% of the Top-1000-online retailers optimized their online shop
for mobile devices, which shows that the mobile sales channel, in
addition to other channels, is yet very important (EHI Retail
Institute & Statista GmbH, 2015). Because the sales of the offline
channel will decrease in the future, many retailers invest in
attractive in store designs. But as mentioned before, the customer
wants both: online and offline shopping. Therefore, 50% of the Figure 1: The classical Buying-Decision Process (Gherkins &
1000 biggest online shops in Germany run a physical shop as Bergsma, 2013)
10 Journal of International Business Research and Marketing

Comparing the new online buying-process (figure 2), caused by a QR-code on the packaging, where information can be scanned
technological developments, consumers firstly select a product with a smartphone or by entering a number code on the website.
on the internet. With the aid of e.g. company websites or
customer reviews, which are the most trustworthy source for Through fTRACE the value chain is more transparent which
consumers, consumers compare these products based on product creates more trust among consumers. Thereby, it is possible that
information and then select a product. Afterwards, they choose consumers prefer a product which is provided with a fTRACE
the supplier, where they buy the product. The new online buying- code to another one (Liegl, 2014). However, the
process illustrates how uncoupled from offline and online Verbraucherzentrale Hamburg recently found out that the degree
channels a consumer can decide. Due to the high amount of of traceability for fTRACE products is acceptable. That means
product offers and information on the internet he decides mostly their products can be traced until the country of production, but
price-orientated, whereby the POD becomes more and more not back to the very end of the supply e.g. a precise defined
important (Heinemann & Gaiser, 2015). Consumers benefit from region (Verbraucherzentrale Hamburg, 2015). Also contradictory
a unique shopping experience, flexibility and simplicity to a information provided by the app or missing wireless
greater extent while switching back and forth between communication in stores has been observed (Meßing, 2014).
information, buying and communication channels (Heinemann & More than 100 manufacturers and retailers are labeled with the
Gaiser, 2015). fTRACE code, through which consumers can trace meat, poultry,
fish, fruit and vegetables (fTRACE, 2015b). In fact, labeled
vegetables and fruits are hardly found in supermarkets even
though fTRACE states this on their website. In addition they
should consider a greater and consistent labeled product range.
For instance, some products of the label Meine Metzgerei, a meat
manufacturer and one of their partners, are provided with a
fTRACE code, others not. Therefore it is hard for customers to
compare products directly or to make better buying decisions.
Compared to similar apps such as Codecheck or barcoo,
fTRACE focuses on the essentials, which is providing detailed
information. Metroprotrace, an app which is operated by the
trading concern Metro AG, additionally offers a modern and
appealing user interface. Both Codecheck and barcoo mainly
Figure 2: The new Online Buying-Decision Process (Gherkins & provide information which links directly to a company’s website
Bergsma, 2013) and not specifically to a product as it does at the fTRACE app.
In summary, without considering online activities in stationary In summary, fTRACE needs to oblige their partners to make
retail and therefore creating a positive shopping experience for transparency a prerequisite. It is important that the provided
consumers, companies will not have a chance to survive in the information is correct, consistent and available in stores at any
cutthroat competition. A huge challenge will be to hold the time. If these factors are not met, this will cause distrust in the
consumer in his sales channel during the buying-process, so that consumers. After all, the majority of consumers welcome digital
he will not switch to another one of a competing retailer services in stores such as the fTRACE app (INTERNET
(Rittinger, 2014). Since consumers make more use of their WORLD, 2015).
smartphones during buying-processes, boundaries between
offline and online channels become increasingly blurred 3.2. Transparency and Traceability in Fashion Business
(Rittinger, 2014). Therefore, changing consumer and information
searching behavior as well as market data speak for a retail The ―Rana Plaza‖-disaster in a Bangladesh factory, were more
concept with a multi-channel approach (Reinartz, 2015). than 1000 workers were killed through the collapse of a building,
has strengthened an increased demand towards a greater
3. From fTRACE app to fashion fTRACE app transparency (Borromeo, 2013). Especially consumers expect
The following chapter firstly provides background information more detailed product information provided by companies (Liegl,
about the fTRACE app as wells as its functionality compared to 2014). Through new technologies such as smartphones
similar apps. Furthermore, it refers to transparency and consumers increasingly use the internet in order to search for
traceability in fashion business. Finally, the dummy fashion information. However, provided information through apps need
fTRACE app will be explained, whereon the following survey is to be available, correct and trustworthy. Consumers will not use
based on. again those apps that do not meet these prerequisites and
subsequently switch to another brand (GS1, 2011). It is also
3.1. FTRACE app - Information and Functionality important to communicate sustainable performance in such a way
that provided information is complete, comparable and
Nowadays consumers are more aware of their purchased products comprehensible so that consumers clearly understand a
and ask for detailed information e.g. the origin of a product. company’s purpose (Confino, 2014). However, more than 90%
Therefore traceability along the value chain plays an increasingly of brands don not know where their raw materials come from, not
important role (Liegl, 2014). FTRACE is an app providing to mention where their clothes are made (61%) (Gould, 2014).
consumers with the opportunity to trace food products along the Many fashion brands’ primary purpose is to maximize profit and
value chain in order to gain detailed information about the origin, to produce clothes in low-waged countries (Payton, 2013).
processing and quality as well as recipe tips. By means of Hence, they do not provide information about their activities
pictures, videos or a map of the factory consumers gain a deeper along the supply chain. Due to complex supply chains and
insight of the processing. Each fTRACE product is provided with fragmented production process into several countries, traceability
is still a big challenge (Niinimäki, 2015).
11 Journal of International Business Research and Marketing

Therefore, companies have to consider a few factors in order to practices throughout their core business such as the usage of
enable a greater transparency. Some of them are willing to invest recycled hangers and packaging, renewable energy as well as
extra money in order to ensure fair and safe working conditions. sustainable and vintage fabrics. Further, they show customers the
But they have to communicate costs of a product to consumers to environmental impact of each purchased item and remind them to
make them understand what the price is based upon in order to take care of their clothes (Reformation, 2015). Zady shows
perceive a value. Only then consumers are willing to pay a higher pictures and videos behind each product so that customers are
price. It is not only a company’s liability to take action; able to discover the whole production process. This creates
consumers should also question how their clothes were produced. emotions, which is often missing in online shopping. By learning
Apart from the retailer and consumer, garment workers should more about each item they think differently about it and
have the chance to influence their working conditions as well subsequently change their buying behavior (Morton, 2015).
(Gould, 2014). Therefore, all stakeholders have to be integrated Zady’s mission is to raise awareness of purchasing more high-
in the process of transparency and traceability. Everyone from quality products by showing their customers the environmental
garment workers to customers should be informed about a impact of low-quality products. Subsequently they perceive and
company’s practices and take action in order to enable a greater understand the quality of products and its value even better
transparent apparel supply chain (Radhakrishnan, 2015). Also the (Zady, 2015). All these fashion brands are perfect examples of
use of technology is helpful to ensure transparency. Through e.g. how transparency and traceability can be implemented across the
e-learning platforms workers are involved and informed in the whole supply chain while building connections to customers
whole process. Other programs give them the opportunity to rate (Morton, 2015).
a factory’s performance (Gould, 2014). In 2012 the US-
3.3. Dummy fashion fTRACE App
department store Macy’s has launched a RFID-Technology (radio
frequency identification). With the aid of RFID, products can be In 2014, the majority of consumers already used apps in order
identified along the value chain. Other advantages such as to search for product information (Heinemann & Gaiser, 2015).
accuracy of the stock, which also leads to reducing losses, However, currently there is no app for the apparel and fashion
increase of turnover, same day delivery and therefore most industry, enabling consumers to trace detailed information about
importantly customer satisfaction can be achieved (Howe, 2015). sustainable aspects of products. Therefore, by means of the
A new technology named Blockchain, an open source database, website generator jimdo (n.d.), a dummy fashion fTRACE
enables consumers to inform themselves about ethical standards website (2015) has been created for this study. Such an app may
of their products. Decentralization of the data, which means that be helpful to satisfy the consumers’ demand for detailed
no one is able to control what kind of data is shown, will also information by combining sustainability and traceability with
bring more transparency into complex supply chains (Steiner, mobile technology at one place. It forms the basis of an online
2015). survey conducted with fashion students, which will be explained
Transparency can only build trust among consumers, if provided in the next chapter. Pictures of the website have been attached in
information is correct, long-lasting and objective. Therefore it is the survey. They visualize the scanning process of a QR-code in
also necessary to publish negative results or information about stores in order to get an idea of how detailed product information
breaches in order to be credible. Otherwise, those companies who regarding sustainable aspects on such a fashion fTRACE app can
pretend to be sustainable but do not undertake any appropriate look like. The QR-code has been created through a QR-code
activities, are as accused of ―greenwashing‖ (Niinimäki, 2015). generator. In such an app, detailed information about the
Through negative experiences or misleading information, following sustainable aspects is recommended: product
consumers remain skeptical toward a company’s social and information, origin, production, quality and price calculation as
environmental activities (Bhaduri & Ha-Brookshire, 2011; well as wash and care advices. Through pictures and videos of
Williams & Page, 2011; Thieme, 2015). Regarding transparency manufacturer as seen by Zady, consumers could gain deeper
as a liability or marketing tool only will reduce a company’s insight of the production process. Only when manufacturers
competitive advantage, which will subsequently entail the loss of provide detailed information about their origin, such as maps of
the consumers’ trust (Young, 2013). Additionally, values and their address or a precise defined region, consumers exactly
sustainable principles have to be implemented holistically in their know where their clothing was made. Additionally, pictures of
corporate culture which means at all levels, functions and workers can show consumers by whom their item was
processes (Niinimäki, 2015). Consequently transparency is manufactured and therefore increases the company’s credibility
achievable on a global scale, when it is in demand by both and trustworthiness. Also certificates by recognized institutions
companies and consumers (Gould, 2014). as well as quality seals are a prerequisite for manufacturer, which
enable greater transparency. Consumers have the right to know
Honest by e.g. is the pioneer of those companies who seek for how the retail price of a product has been calculated. Therefore, a
100% transparency in the fashion business. They perfectly show full cost breakdown as seen by Honest by, can give consumers
how to link sustainable and transparent issues. Consumers get the opportunity to understand the exact price composition.
deep insight from yarn origin to manufacturing details. They Further, information regarding wash and care advices are
offer environmentally friendly and fairly produced products with attached as to remind consumers to also take care of the
detailed information about where their clothes were made, by environment by using e.g. appropriate detergents. With the aid of
whom and how the price of the product has been calculated the fashion fTRACE app, consumers are connected to their
(Honest by, n.d.). Also Everlane shares a full cost breakdown of purchased products by having an idea of the environmental and
its products by showing their markup compared to traditional social footprint (Confino, 2014). Additionally, QR-codes are a
retailers. Additionally, they tell a story and show pictures behind huge advantage for retailers since they are not only affordable
each factory (Morton, 2015). As they claim to offer a ―radical and competitive, but they also link several channels with each
transparency‖ they ask their customers to always questioning a other (Schramm-Klein et al., 2014). Fig. 3 demonstrate examples
company’s practices, e.g. production processes (Everlane, n.d.). from the app.
Reformation, a fashion brand based in Los Angeles, produces
mostly in their own factory. They implement sustainable
12 Journal of International Business Research and Marketing

4.2. Methodology
The study is descriptive and the results are based on primary
data. An online questionnaire with 65 respondents was conducted
receiving an email containing a link to the survey. Participants
were a sample of undergraduate and graduate students enrolled in
the School of Textiles and Design (TD) at Reutlingen University.
Respondents were required to answer 14 questions. Amongst
others a five-point Likert-scale was used measuring the degree of
importance for information searching in general and through
using a QR-Code; ―1‖ represented ―very important‖ and ―5‖
represented ―completely unimportant‖. To visualize the
utilization of a QR-Code in fashion retailing pictures were
attached in the survey (see figure 10 in the appendix). They show
how product information regarding sustainable aspects as well as
transparency can be transferred on an app in detail as described in
the previous chapter. Respondents were also asked to answer
multiple response and single selection questions in order to
examine the impact on their perception of transparency as well as
their preference for a product with detailed information.
Additionally, the survey examined factors according to gender,
age, purchase channel and information channel as well as the
degree of importance for purchase aspects. It also included the
purchase behavior of sustainable clothing and whether
participants already used a QR-Code in stores. To provide an
overview of the sample, descriptive statistics were performed on
the demographic variables as well as on the purchase channel and
its aspects. Multiple responses cross tabulation were used in
order to find out how the purchase and information channel relate
to each other. A paired sample (dependent) t-test and independent
t-test were used to test the first two research questions. Finally a
chi-square test was performed to test the relationship between the
preference for a product with detailed information and the impact
on consumers’ perception of sustainability.

4.3. Results

Figure 3: Example place of origin and price calculation from the A total of 65 respondents participated at this study, whereas
dummy fashion ftrace app females represented the majority with 86.2%. The mean age
(58.5%) of the sample was 21 to 25 years. More than 60% of the
4. Empirical Analysis mean age group were females. Participants were asked in which
channel they rather purchase apparel. In a five-point Likert-scale
4.1. Aim of the Study
they were required to give a tendency three times; between online
The study was undertaken in order to find out how consumers and stationary, online and mobile as well as mobile and
perceive transparent information through a QR-Code and whether stationary purchase channel. The first scale ranges from ―1‖
they prefer a product with detailed information compared to a representing ―online‖ to ―5‖ representing ―stationary‖. The
similar product without the same. The purpose of this survey was second scale ranges from ―1‖ representing ―online‖ to ―5‖
to examine the impact of transparency on perception through the representing ―mobile‖, whereas the third scale ranges from ―1‖
application of a QR-Code in stores. The study addressed both the representing ―mobile‖ to ―5‖ representing ―stationary‖. Mean
information searching behavior in general (without a QR-code) responses for the channel variables are detailed in table 1,
and by using a QR-Code, as noted in the following research revealing that participants tend to purchase rather stationary than
questions: online (M=3.5538), rather online than mobile (M=1.9846) and
rather stationary than mobile (M=4.3231). These results indicate,
 What is the consumers’ degree of importance for that participants tend to purchase apparel primary in stationary
information searching regarding sustainability in general channel, secondly online, followed by the mobile channel.
compared to the application of a QR-Code in stores?
 What is the consumers’ degree of importance for Table 1: Purchase Channels
information searching regarding sustainability through the
application of a QR-code when preferring a product with
detailed information?
 What kind of relationship can be identified between the
preference for a product with detailed information and the
impacts of transparency provided by a QR-Code on
consumers’ perception of sustainability?
13 Journal of International Business Research and Marketing

In order to find out more precisely in which channels participants either online or stationary, 10.3% (N=6) by all channels and 8.6%
purchase apparel, seven purchase groups were defined on the (N=5) purchase only in stores. The half of those participants, who
basis of their selected scales as follows: Online-stationary, searched for information in stores as well as via mobile,
online-mobile, mobile-stationary, online-stationary-mobile, purchased afterwards either online or in stores. 22.7% (N=5) of
online, stationary and mobile. The majority of participants the stationary researchers purchase in all channels or similarly
(N=43, 66.2% of sample) purchase apparel in both online and only in stationary retail. 16.7% (N=2) of those participants who
stationary channel, while 10.8% (N=7) of the participants neither researched information via mobile purchased either online-
prefer one nor two purchase channel. Those who purchase only mobile or similarly only in stores. Overall this implies that the
via one channel represent the minority with 15.4%. 12.3% (N=8) majority of participants search online for information, while they
of the participants purchase offline, 3.1% (N=2) online while purchase mainly in stores.
none of the participants purchases apparel only via mobile.
A paired samples (dependent) t-test was conducted to compare
Table 2 shows how important each purchase aspect for the consumers’ degree of importance for information searching
participants in general is (without considering the purchase regarding sustainable aspects in general (without QR-code) and
channels). Participants were conducted to rate their degree of with a QR-code. In a five-point Likert-scale participants were
importance in a five-point Likert-scale, ranging from ―1‖ asked to rate the degree of importance, ranging from ―1‖
representing ―very important‖ to ―5‖ representing ―completely representing ―very important‖ to ―5‖ representing ―completely
unimportant‖. Due to limitation in scope, only the most unimportant‖. A one-tailed paired samples t-test:
significant findings will be explained. With a mean value of  reveals that the degree of importance for information
1.3231, ―design‖ tends to be the most important purchase aspect search of ―origin‖ with a QR-Code (M=2.3231, s=.93721) is
for participants. higher than without a QR-Code (M=3.0, s=1.01550), t(64)=
6.720,p=.000, α=.05
Table 2: Importancy of purchase aspects in general  reveals that the degree of importance for information
search of ―production‖ with a QR-Code (M=2.5077,
s=1.04766) is higher than without a QR-Code (M=3.0154,
s=.99204), t(64)= 4.219,p=.000, α=.05
 reveals that the degree of importance for information
search of ―social aspects‖ with a QR-Code (M=2,3231,
s=1,01716) is higher than without a QR-Code (M=3,0462,
s=.97517), t(64)= 6,530,p=.000, α=.05
 reveals that the degree of importance for information
search of ―quality‖ with a QR-Code (M=1,6923, s=,63549) is
higher than without a QR-Code (M=1,9231, s=,69164),
t(64)= 2,650,p=.005, α=.05
 reveals that the degree of importance for information
search of ―price calculation‖ with QR-Code (M=2,7231,
s=1,17935) is higher than without a QR-Code (M=3,6923,
s=1,01432), t(64)= 6,906,p=.000, α=.05
While this aspect is very important for the online-mobile  reveals that the degree of importance for information
purchase group (N=3, 100%), it is only partially important for search of ―quality seal‖ with a QR-Code (M=3,1231,
those participants who purchase solely online (N=2, 100%). ―Fit‖ s=,96027) is higher than without a QR-Code (M=3,4923,
(M=1.5846) tends to be the second most important aspect for s=,88606), t(64)= 4,017,p=.000, α=.05
participants followed by ―comfort‖ (M=2.0615). Regarding
sustainable purchase aspects, ―quality‖ tends to be most These findings are significant as they reveal that, transparency
important aspect (M=2.1692). While ―social aspects‖ tend to be through the application of a QR-Code in stores positively
partially important (M=2.8462) to the average, for 37.2% (N=16) influences the consumers’ perception of sustainability.
of online-stationary purchaser that aspect is more important.
‖Origin‖ (M=3.2615) and ―production‖ (M=3.3846) tend to be In order to explore the preference for a product with detailed
partially important. For all (N=2) mobile-stationary purchaser information on the consumers’ degree of importance for
―production‖ is even completely unimportant. The most sustainable aspects, an independent t-test was used. This test
unimportant purchase aspect is ―quality seal‖ for both the average found that:
of participants (M=3.5692) and for the majority of the different  there was no statistically significant difference between
purchase channels. These results indicate that general aspects for searching for ―product information‖ with a QR-Code of those
purchasing apparel are more important to participants of this who prefer a product with detailed information (M=1.6667,
study than sustainable aspects. There are also conflicting results s=.76594) to those participants who do not prefer a product
within the purchase groups (the degree of importance). with detailed information (M=1.6429, s=.49725), t(63)=.110,
p=.913, α=.05
Participants were also asked to answer in which channel they  there was a statistically significant difference in searching
search for information regarding apparels (with the possibility of for information regarding ―origin‖ with a QR-Code,
multiple responses). Nearly 90% of (N=58, 89.2%) participants t(63)=2.880, p=.005, α=.05. The effect size for this analysis
search online for information, while 33.8% (N=22) search in (d=.927) was found to exceed Cohen’s (1988) convention to a
stores and only 18.5% (N=12) via mobile. To examine further large effect (d=.80). These results indicate that participants in
how the information and purchase channels relate to each other a the ―preference‖ group (M=2.1569, s=.92461) experienced
multiple response cross tabulation was used. More than 70% higher importance regarding ―origin‖ than did participants in
(N=41) of those participants who researched online, purchase
14 Journal of International Business Research and Marketing

the ―non-preference‖ group (M=2.9286, s=.73005) (see table in order to search for information. One participant (1.5%)
3) purchased sustainable clothing only, while five (7.7%) seldom
 there was a statistically significant difference in searching and six (9.2%) never purchased sustainable clothing. Almost half
for information regarding ―production‖ with a QR-Code, (n=5, 45.5%) of those participants who used a QR-code before
t(63)=3.025, p=.004, α=.05. The effect size for this analysis (n=11, 16.9%) were not sure whether they purchased sustainable
(d=.867) was found to exceed Cohen’s (1988) convention for clothing or not, which represent in total 31 participants (47.7%).
a large effect (d=.80). These results indicate that participants
in the ―preference‖ group (M=2.3137, s=.94848) experienced 4.4. Summary of the empirical findings
higher importance regarding production than did participants
in the ―non-preference‖ group (M=3.2143, s=1.12171). The purpose of this study was to test the impact of transparency
 there was no statistically significant difference between on perception of sustainability through the application of a QR-
Code in stores. According to the first research question,
searching for information regarding ―social aspects‖ with a
information regarding ―origin‖, ―production‖, ―social aspects‖,
QR-Code of those who prefer a product with detailed
―quality‖, ―price calculation‖ and ―quality seal‖ were rated of
information (M=1.6078, s=1.00625) to those participants who
higher importance by participants through the application of a
do not prefer a product with detailed information (M=2.7143
QR-code than without. The participants’ degree of importance
s=.99449), t(63)=1.646, p=.105, α=.05
toward ―price calculation‖ in general (M=3.6923) and through
the application a QR-code (M=2.7231) displayed the most
There was a statistically significant difference in searching for
significant difference. These findings are noteworthy as they
information regarding ―quality‖ with a QR-code, t(63)=2.099,
reveal that, transparency through the application of a QR-Code in
p=.040, α=.05. The effect size for this analysis (d=.61) was not
stores positively influences the consumers’ search for
found to exceed Cohen’s (1988) convention (d=.80). These
information. Regarding the second research question, the degree
results indicate that participants who prefer a product with
of importance for the sustainable aspects ―origin‖ (M=2.157),
detailed information (M=1.6078, s=.60261) had statistically
―production‖ (M=2.3137) and ―quality‖ (M=1.6078) were rated
significant higher degrees of importance of searching for
higher by participants who prefer a product with detailed
information than those participants who do not prefer a product
information. These findings suggest that there is a statistically
with detailed information (M=2.000, s=.67937).
significant difference between searching for information
Table 3: Preference for a Product with Detailed Information & regarding ―origin‖, ―production‖ as well as ―quality‖ and those
Information Search for Sustainable Aspects with QR-Code participants who prefer a product with detailed information.
According to the third research question, nearly 90% of the
participants who perceive a ―positive shopping feeling‖ through
transparency via QR-Code prefer a product with detailed
information. These findings are noteworthy, as they indicate that
there is no statistically significant relationship between
―credibility and trust‖, ―higher awareness of purchasing
sustainable clothing‖, ―purchasing rather a product with detailed
information‖, ―purchasing additional products‖ as well as
―willingness to pay a higher price‖ and preference for a product
with detailed information.

In this study participants expressed that a product with detailed

information is more attractive to them, but more than 80% did
not use a QR-code in stores before. Moreover, participants
perceive a positive shopping feeling through transparency via a
QR-code. Further, information regarding sustainable aspects
through a QR-code has been rated of high importance by
These findings suggest that the preference for a product with
participants. This is why retailers have to consider providing
detailed information perceived by participants has a positive
more detailed information for consumers.
influence on searching for information regarding ―origin‖,
―production‖ and ―quality‖. 5. Discussion

A chi-square test was performed to examine the relationship The previous chapters have shown that consumers have a lack of
between the preference for a product with detailed information knowledge concerning sustainability. It is therefore important
and the impacts on participants’ perception of sustainability. The that companies provide detailed information so that consumers
only statistically significant relationship was found between the are able to make better buying decisions and finally have more
preference for a product with detailed information and ―positive confidence for purchasing sustainable products (Shen et al.,
shopping feeling‖, (1,N=65)=5,849, p=.016. The effect size for 2012). Other findings indicated consumers conflicting
this finding, Phi, was medium (.300). All other relationship have perceptions of sustainability depending on the respondent
not shown a significant relation. These results indicate that there sampling group. Therefore, companies have to know their target
is a positive relationship between participants who prefer a group and understand its needs and values (Thieme, 2015).
product with detailed information to their perception of a
―positive shopping feeling‖ caused by transparency via a QR- Technological developments lead to changing consumer behavior
code (N=33, more than half of the participants). and retail environment. Still the majority of online shops have
not implemented any omni-channel-services yet. However,
Participants were also asked to answer whether they purchase consumers expect these since e.g. through click & collect further
sustainable clothing and whether they used a QR-code in stores impulse buying is possible. Nevertheless, approximately one
15 Journal of International Business Research and Marketing

third of these retailers are planning to implement omni-channel- via a QR-Code agreed to prefer a product with detailed
services (EHI Retail Institute, 2015). Both ROPO and omni- information. This finding is noteworthy since consumers benefit
channel-services have demonstrated how strongly offline and from a greater shopping experience, flexibility and simplicity
online channels influence one another. Especially when searching while switching between channels back and forth (Heinemann &
for information, the combination of using a smartphone at the Gaiser, 2015). However, the majority of participants have not
POS plays an important role. The new buying-decision process used a QR-code in stores yet. This could have many reasons such
illustrates how important the POD becomes as information is as limited promotion or lack of attractiveness of existing QR-
being provided through the internet (Heinemann & Gaiser, 2015). codes. Nevertheless, other findings in this paper have shown that
This further indicates the importance of integrating different the majority already used their smartphones for product
channels. information searches at the POS in 2014. Therefore, retailers
have to consider providing more detailed information in form of
As findings regarding the fTRACE app indicated, traceability a QR-code, as consumers change their information searching
until a precisely defined region (Verbraucherzentrale Hamburg, behavior and smartphones become more important during the
2015, p.5) as well as a consistently labeled product range has not buying-process.
been taken into consideration yet. As literature has shown, it is
important for companies to provide correct and trustworthy Referring back to the specific research objective to investigate
information which are available at POS and communicated in a the relationship between consumers’ perception of sustainability
comprehensible way (Confino, 2014). Transparency should not and the application of a QR-code in stores, with the focus on
only be considered as a liability or marketing tool (Young, 2013). consumers’ information searching behavior regarding sustainable
It should be correct and objective (Niinimäki, 2015). By the aspects, a clear answer can be derived. There is a positive
means of best-practice-examples, it has been shown that relationship, because consumers perceive sustainable aspects as
transparency is achievable across the whole supply chain e.g. much more important when detailed information is being
through sharing a full cost breakdown. However, more than 90% provided through a QR-code such as the fashion fTRACE app.
of brands don not know where their raw materials come from, not However, concerning the survey there was no statistically
to mention where their clothes are being produced (61%) (Gould, significant relationship between the participants who prefer a
2014). Furthermore, there is still need for action as many product with detailed information and other impacts on
companies pretend to be sustainable, but do not do any consumers’ perceptions such as ―willingness to pay a higher
appropriate activities in this field, focusing more on economic price‖ or ―purchasing additional products‖. Nevertheless, other
aspects in order to maximize profit (Payton, 2013). It has been findings in this research paper have shown that consumers are
noted that sustainable engagement is more successful in the long willing to pay a higher price and in general have a positive
run, since it builds trust and credibility among consumers attitude toward sustainable products as well as want to support
(Niinimäki, 2015). As literature has demonstrated consumers sustainable practices. Therefore, companies have to provide
increasingly ask for detailed information (Liegl, 2014). Therefore detailed information so that consumers have more confidence to
the fashion fTRACE app can be helpful to satisfy the consumers’ purchase sustainable clothes. Since, consumers search for product
demand for detailed information by combining sustainability and information through their smartphone and the sales volume of
traceability with mobile technology at one place. However, there stationary retail is expected to decrease during the next years,
is need for improvements since many apps have technical QR-codes are a chance for retailers to hold not only consumers in
problems, e.g. not having correct information ready. Providing the stationary retail, but also to link several channels with each
trustworthy information through apps will help towards better other so that consumers do not switch to another one of a
buying decisions as well as an improved competitive factor, as competing retailer. Through providing detailed product
they link several channels with each other (GS1, 2011; Schramm- information, companies are able to build a connection between
Klein et al., 2014). consumers and the purchased product so that they perceive the
value of a product differently. Subsequently, an increased
The findings of the online questionnaire have demonstrated that, awareness of sustainability among consumers can be achieved. It
through the usage of a QR-code in stores, consumers give is therefore important for retailers to focus on the consumers’
―origin‖, ―production‖, ―social aspects‖, ―quality‖, ―price needs and demand for purchasing via different channels.
calculation‖ and ―quality seal‖ a higher importance while
searching for information than without a QR-code. Especially 6. Conclusion
concerning ―price calculation‖ the difference between the
information searching in general (without a QR-code) and with a The purpose of this paper was to critically reflect the relationship
QR-code has been huge and rated much higher than without a between consumers’ perception of sustainability and the
QR-code. Referring to the findings, transparent companies have application of a QR-code in stationary fashion retail, with the
shared a full cost breakdown of their products. This shows that focus on consumers’ information searching behavior regarding
they already perceive and consider the consumers’ need for sustainable aspects.
providing detailed information. Another finding in this research
paper has shown that aspects such as price, availability or The results of the literature review reveal that consumers
consumer ratings have been ranked higher than sustainable generally have a positive attitude toward sustainability and want
aspects. Therefore, other factors for information searching have to support sustainable fashion businesses, but they have a lack of
to be taken into consideration as well. Consumers, who prefer a knowledge about sustainable issues. It has been shown that both
product with detailed information, have given ―origin‖, the sales volume of the online and mobile commerce is expected
―production‖ and ―quality‖ a higher rating. This is crucial, since to increase rapidly during the next years, which represent the
other findings in this research paper have also shown the consumers’ demand for purchasing in different channels. Since
preference for a product with detailed information. Another they also welcome omni-channel-services companies have to link
important finding demonstrated, that almost all of the participants their channels to each other. It has been demonstrated that
who perceive a positive shopping feeling through transparency consumers research online before purchasing offline, which
results in a shift from the classical buying-decision process
16 Journal of International Business Research and Marketing

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