P-ISSN: 2827-9832
E-ISSN: 2828-335x
http://ijsr.internationaljournallabs.com/index.php/ijsr
1020
THE INFLUENCE OF PERCEIVED CSR AUTHENTICITY ON
PERCEIVED BRAND LOYALTY THROUGH PERCEIVED BRAND
AUTHENTICITY IN THE FAST FASHION INDUSTRY
Andani Fanza Florent Dachi
Universitas Trisakti
Fanza.wk@gmail.com
ABSTRACT
The fast fashion model business has represented a profound revolution for the fashion industry over the past
few decades. The term "fast fashion" itself has been used by academics and practitioners to consider a
business model, which has been increasingly adopted over the years in the fashion system, which combines
high collection level updates, style/design satisfaction, and a sharp reduction in inventory and time (to
distribute it) to the market. The survey research method in this study will be supported by a questionnaire
as a data collection tool. Hypothesis 1 was carried out with the aim of testing Perceived CSR Autenticity
positively affects Perceived Brand Authenticity. Hypothesis 2a was carried out with the aim of testing
Perceived CSR Autenticity positively affects Brand Trust. Hypothesis 2b was carried out with the aim of
testing Perceived CSR Autenticity to have a positive effect on Positive WOM. Hypothesis 3a was carried
out with the aim of testing perceived brand Autenticity positively affects Brand Trust. The 3b hypothesis
was carried out with the aim of testing Perceived Brand Autenticity to have a positive effect on Positive
WOM. Hypothesis 4a was carried out with the aim of testing Perceived Brand Authenticity mediating the
positive influence of Perceived CSR Authenticity on Brand Trust. Hypothesis 4a was carried out with the
aim of testing Perceived Brand Authenticity mediating the positive influence of Perceived CSR Authenticity
on Positive WOM. Based on the results of the repondent assessment of the Brand Trust variable obtained
through the questionnaire, H&M, Uniqlo and Zara need to strengthen CSR activities to make consumers feel
safe to trust them.
Keywords: fast fashion, perceived brand authenticity, brand trust
This article is licensed under CC BY-SA 4.0
INTRODUCTION
The fast fashion model business has represented a profound revolution in the fashion
industry over the past few decades. The term "fast fashion" itself has been used by academics
and practitioners to consider a business model, which is increasingly being adopted over the
years in the fashion system, which combines high collection-level updates, style/design
satisfaction, and a sharp reduction in inventory and time (to distribute it) to the market. This
business strategy aims to reduce the number of processes in the buying cycle and quickly
incorporate new fashion products into stores to meet consumer demand (Park & Kim, 2016).
Now, the fast fashion industry is becoming increasingly important for the world economy.
The fashion industry is reportedly the third largest industry in the world after the automotive
industry and the technology industry. Global sales revenue in the fashion industry reaches USD
180,000,000,000 (eighty billion US dollars) annually or 4% of the total global GDP (Gross
Domestic Product) (Krismawan, 2021). In Indonesia, based on data released by CNBC
Indonesia (2019), the fashion industry contributes 18.01% or Rp 116,000,000,000,000 (one
hundred and sixteen trillion rupiahs) to Indonesia's creative economy.
The existence of the fashion industry then becomes contentious because it has become the
second most environmentally polluting industry in the World, threatening our planet and
The Influence of Perceived CSR Authenticity on Perceived Brand Loyalty Through Perceived
Brand Authenticity in the Fast Fashion Industry
1021 2, 3., February 2023
resources (Benn et al., 2014). This happens because of the large amount of production caused
by the large market demand. Long Nasiry (2019) thinks that poor product quality and its
derivative waste are the cause. This assumption is supported by the Neumann et al (2021),
Environmental Audit Committee (2019) which states that low quality, increased frequency of
high disposal, and the worsening environmental impact of fast fashion as low-grade materials
are less likely to get a "second life" and are more likely to end up in landfills.
As much as 85% of textile waste in America ends up in landfills. Within 10 years, there
was an increase in textile waste by 40%. In Canada, textile products account for 10% of waste
(Weber et al., 2017). In the South East Asia Fashion Sustainability Report 2021 by Fashion
Revolution Singapore and Oxford Development Consultancy (ODC), 92 million tons of waste
are generated by the fast fashion industry and around 79 trillion liters of water are consumed
annually to produce fast fashion products. Because of this, the fashion industry is accused of
being responsible for one-third of all microplastics in the oceans and 20% of wastewater in the
world. In addition, labor is a hot issue for the fast fashion industry. Often producers neglect
work safety, working hours, and decent wages for their workers. Not only are wages
substandard, but they are also found to be paying wages that are often late.
Due to its various problems, the textile and garment production process in the fashion
industry pays much attention to sustainability. Sustainability involves complex and capricious
environmental dynamics that affect human livelihoods and well-being, which simultaneously
intersect with ecological, economic, and socio-political dimensions, both globally and locally.
Corporate Social Responsibility (CSR) is a form of sustainable corporate commitment from
companies that run ethically and contribute to a development that improves the quality of life
of the workforce with their families and local communities, as well as the wider community.
Consumers' growing attention to CSR tends to influence their perception and purchasing
behavior. As a result, companies face pressure to respond to consumer attitudes by conducting
CSR activities.
Various fast fashion brands have made efforts to do CSR for their sustainability. CSR itself
is important for consumers. Consumers assess a company's CSR activities when making
purchasing decisions (Shah & Khan, 2020). However, often consumers actually doubt the CSR
activities they carry out because their activities are considered only to get a good image of the
company, not sincere activities to the community. To overcome consumer doubts regarding a
company's CSR activities, a company's CSR actions must be authentic and consistent with the
company's core values (Alhouti et al., 2016; Jose et al., 2018; Safeer & Liu, 2023).
Authenticity has been at the forefront of modern marketing communications due to the
growing demand for sincere, honest, and transparent business (Perez et al, 2020). This shows
that authenticity has become important in the lives of consumers today. The company’s CSR
activities are well assessed when the perceptions of various stakeholders are also good.
Dawood (2020), explains that previous organizations relied solely on the traditional marketing
mix. Later, they paid great attention to CSR to gain customer loyalty. it is more likely that the
feeling of loyalty among customers will soar if they consider the organization ethical and
responsible within its community (Lacap & Alfonso, 2022). Socially responsible brand
behavior can lead to benefits for key organizations, such as increased consumer confidence and
positive word-of-mouth promotion (Iglesias et al., 2020; Safeer & Liu, 2023). Consumer trust
in a brand (Brand Trust) is obtained through fostering consumer trust and confidence that the
The Influence of Perceived CSR Authenticity on Perceived Brand Loyalty Through Perceived Brand
Authenticity in the Fast Fashion Industry
1022 2, 3., February 2023
product is able to meet the promised value. A company's CSR actions can also positively
influence consumers' perceptions and encourage them to spread PWOM about their brand
(Iglesias et al., 2020). A positive feeling toward a quality brand will make consumers loyal to
a brand that produces PWOM.
PWOM is one of the elements of Perceived Brand Loyalty. PWOM significantly and
positively affects brand engagement so that it has an impact on Brand Loyalty. In addition to
PWOM, Brand Trust also helped build Brand Loyalty. Trust is generally considered a
significant indicator of customer loyalty (Tan et al., 2022). Previous studies have revealed that
marketing researchers examine loyalty using different ideas, such as consumer Brand Loyalty
(Iglesias et al., 2020), repurchase intentions, word of mouth, and price premium (Safeer et al,
2021d). However, previous studies have rarely associated 2 ideas, namely Brand Trust and
PWOM which are key antecedents and contribute to Brand Loyalty (Safeer & Liu, 2023).
Perceived Brand Loyalty has several advantages, such as increasing sales volume and revenue,
limiting competitors, and limiting consumer acceptance of competitors' marketing activities
(Lahtinen et al., 2020; Safeer & Liu, 2023).
Perceived Brand Authenticity is one of the next things to note. Recent studies consider
brand authenticity as a subjective evaluation by consumers based on their interpretation,
knowledge, input and personal tastes (Yang & Battocchio, 2021). Perceived Brand
Authenticity is one of the important antecedents of a brand's psychological ownership because
authentic branding helps individuals to establish whom they are by providing meaning and
identity for their lives (Kumar & Kaushal, 2021; Morhart et al., 2015). Therefore, if consumers
feel a brand is more powerful, they will have a higher level of trust in the brand than their
competitors and consumers feel more confident and safe when they buy an authentic brand
(Safeer & Liu, 2023). Thus, brands that are authentic have a greater chance of gaining
consumer trust, which can translate into Brand Loyalty for global brands.
Based on this background, it is important to know the relationship between perceived CSR
authenticity, Perceived Brand authenticity, and Perceived Brand Loyalty in the fast Fashion
industry. Previous research has discussed a lot about the relationship between brand
authenticity and brand loyalty. However, not many researchers have associated it with
perceived CSR authenticity. In addition, not many researchers have become Brand Trust and
PWOM as part of Perceived Brand Loyalty. This research will refer to a previous study by
Safeer and Liu (2022) entitled Role of Corporate Social Responsibility Authenticity in
Developing Perceived Brand Loyalty: a Consumer Perceptions Paradigm. However, this
study will use the Fast Fashion industry as a research object by eliminating moderation
variables from previous studies.
METHOD
The survey research method in this study will be supported by a questionnaire as a data
collection tool. The analysis unit of this study is consumers who know and have purchased
H&M, Uniqlo, and Zara products and care about environmental and social issues.
This research refers to previous research from Asif Ali Safeer and Hancheng Liu (2022).
This study examines the influence of perceived CSR authenticity variables on perceived brand
loyalty (brand trust and PWOM) through perceived brand authenticity. In this study, the
dependent variable to be studied is perceived brand loyalty (brand trust and PWOM).
The Influence of Perceived CSR Authenticity on Perceived Brand Loyalty Through Perceived
Brand Authenticity in the Fast Fashion Industry
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Meanwhile, the free variable or independent variable studied is perceived CSR authenticity. In
addition, there are mediating variables or intervening variables studied, namely perceived
brand authenticity.
The data used in this study are primary data. The population in this study were individuals
who knew and had purchased products from H&M, Uniqlo, and Zara. Sampling was carried
out using purposive sampling, namely, samples taken using certain criteria, namely
respondents had known the H&M, Uniqlo, and Zara brands, in the past year bought products
from these brands, and cared about social and environmental issues.
Theoretical hypothesis testing is used to test the influence of each independent variable on
its dependent variable. The hypothesis is carried out by stages:
1) Ho: b1 = 0 Independent variables do not affect dependent variables; and
2) Ho: b1≠0 Independent variables affect dependent variables
Decision:
1) If the p-value of t < 0.05 then Ho is rejected; and
2) If the p-value of t > 0.05 then Ho is accepted.
RESULTS AND DISCUSSION
The results of the analysis related to the study of the research hypothesis can be seen in table
1.
Table 1. Research Hypothesis Testing
Hypothesis
Coefficient
T
statistics
P-
value
Decision
H1
0.788
24.000
0.000
Hypothesis
supported
H2
0.335
4.517
0.000
Hypothesis
supported
H3
0.089
1.135
0.128
Hypothesis
unsupported
H4
0.604
7.794
0.000
Hypothesis
supported
H5
0.763
11.655
0.000
Hypothesis
supported
H6
0.476
7.159
0.000
Hypothesis
supported
H7
0.602
9.998
0.000
Hypothesis
supported
Source: Data Processed
The Influence of Perceived CSR Authenticity on Perceived Brand Loyalty Through Perceived Brand
Authenticity in the Fast Fashion Industry
1024 2, 3., February 2023
Hypothesis 1
Hypothesis 1 was carried out with the aim of testing whether Perceived CSR authenticity
positively affects Perceived Brand Authenticity. The processing results obtained an estimated
coefficient of 0.788 which means that the increase in Perceived CSR Authenticity will increase
Perceived Brand Authenticity and vice versa the decrease in Perceived CSR Authenticity will
decrease Perceived Brand Authenticity. The p-value of the statistical t of 0.000 < 0.05 then Ho
is rejected and Ha is accepted so that the hypothesis that states Perceived CSR Authenticity has
a positive effect on Perceived Brand Authenticity is proven. These findings support research
conducted by Kim & Lee (2020) and Safeer et al (2022) which showed a positive influence of
Perceived CSR Authenticity on Perceived Brand Authenticity.
Hypothesis 2
Hypothesis 2a was carried out with the aim of testing whether Perceived CSR authenticity
positively affects Brand Trust. The processing results obtained an estimated coefficient of
0.335 which means that an increase in Perceived CSR Autenticity will increase Brand Trust
and vice versa a decrease in Perceived CSR Autenticity will decrease Brand Trust. The p-
value of the statistical t of 0.000 < 0.05 then Ho is rejected and Ha is accepted so that the
hypothesis that stated Perceived CSR Authenticity has a positive effect on Brand Trust is
proven. These findings support research conducted by Markovic et al (2018) and Safeer & Liu
(2022).
Hypothesis 3
Hypothesis 2b was carried out with the aim of testing Perceived CSR authenticity to have a
positive effect on Positive WOM. The processing results obtained an estimated coefficient of
0.089, which means that increasing Perceived CSR Autenticity will increase Positive WOM
and vice versa decreasing Perceived CSR Autenticity will decrease Positive WOM. The p-
value of the statistical t of 0.128 > 0.05 then Ho is accepted so that the hypothesis that states
Perceived CSR Authenticity has a positive effect on Positive WOM is not proven, so this
finding cannot support the research that has been carried out by Markovic et al (2018 ) and
Safeer & Liu (2022).
Hypothesis 4
Hypothesis 3a was carried out with the aim of testing whether perceived brand Authenticity
positively affects Brand Trust. The processing results obtained an estimated coefficient of
0.604 which means that the increase in Perceived brand Authenticity will increase Brand Trust,
and vice versa the decrease in Perceived brand authenticity will decrease Brand Trust. The p-
value of the statistical t of 0.000 < 0.05 then Ho is rejected and Ha is accepted so that the
hypothesis that states Perceived brand Authenticity has a positive effect on Brand Trust is
proven. These findings support research conducted by Gate et al (2019), Hernandez-Fernandez
& Lewis (2019), and Safeer & Liu (2022).
The Influence of Perceived CSR Authenticity on Perceived Brand Loyalty Through Perceived
Brand Authenticity in the Fast Fashion Industry
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Hypothesis 5
The 3b hypothesis was carried out with the aim of testing Perceived Brand authenticity to
have a positive effect on Positive WOM. The processing results obtained an estimated
coefficient of 0.763, which means that increasing Perceived Brand Autenticity will increase
Positive WOM. and conversely the decline in Perceived Brand Autenticity has decreased
Positive WOM. The p-value of the statistical t of 0.000 < 0.05 then Ho is rejected and Ha is
accepted so that the hypothesis that states Perceived CSR Authenticity has a positive effect on
Positive WOM is proven. These findings support research conducted by Markovic et al (2021),
Morhart et al (2015), and Safeer & Liu (2022).
Hypothesis 6
Hypothesis 4a was carried out with the aim of testing Perceived Brand Authenticity
mediating the positive influence of Perceived CSR Authenticity on Brand Trust. The
processing results obtained an estimated coefficient of 0.476 which means that the increase in
Perceived CSR Authenticity will increase Brand Trust by being mediated by Perceived Brand
Authenticity and vice versa the decrease in Perceived CSR Authenticity will decrease Brand
Trust by being mediated by Perceived Brand Authenticity. The p-value of the statistical t of
0.000 < 0.05 then Ho is rejected and Ha is accepted so that the hypothesis that states testing
Perceived Brand Authenticity mediates the positive influence of Perceived CSR Authenticity
on Brand Trust is proven. These findings support research conducted by Add-El-Salam (2020),
Markovic et al (2021), and Safeer & Liu (2022)
Hypothesis 7
Hypothesis 4a was carried out with the aim of testing Perceived Brand Authenticity
mediating the positive influence of Perceived CSR Authenticity on Positive WOM. The
processing results obtained an estimated coefficient of 0.602 which means that increasing
Perceived CSR Authenticity will increase Positive WOM by being mediated by Perceived
Brand Authenticity and vice versa decreasing Perceived CSR Authenticity will decrease
Positive WOM by mediating by Perceived Brand Authenticity. The p-value of the statistical
t of 0.000 < 0.05 then Ho is rejected and Ha is accepted so that the hypothesis that states testing
Perceived Brand Authenticity mediates the positive influence of Perceived CSR Authenticity
on Positive WOM is proven. These findings support research conducted by Add-El-Salam
(2020), Schallern et al (2014), and Safeer & Liu (2022).
CONCLUSION
Based on the results of the respondent assessment of the Brand Trust variable obtained
through the questionnaire, H&M, Uniqlo and Zara need to strengthen CSR activities to make
consumers feel safe to trust them. In addition, more massive publications on sustainability the
company has done need to be done.
Based on the results of the respondent assessment of PWOM obtained through
questionnaires, H&M, Uniqlo and Zara need to rethink their company strategy so that
consumers will spread positive word of mouth to others. Improving the quality of materials and
more authentic models can be one of the strategies.
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Authenticity in the Fast Fashion Industry
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Based on the results of respondents' assessment of the Perceived Brand Authenticity
variable obtained through questionnaires, H &M, Uniqlo, and Zara need to provide more
information about the uniqueness of the company's ideology. Publication and socialization
need to be done more, not only on the company's website.
Based on the results of the respondent’s assessment of the Perceived CSR Authenticity
variable obtained through questionnaires, H &M, Uniqlo, and Zara need to move away from
CSR programs that are only profit-seeking or improve the company's image. CSR activities
that contribute more to society and the environment will be considered more authentic and
sustainable by consumers.
This research is limited to using only the variables Perceived CSR Authenticity and
Perceived Brand Authenticity in forming Brand Loyalty which in this case is measured using
Brand Trust and Positive WOM. To improve the quality of the resulting model, it is
recommended to include other variables both independent variables and other mediation
variables such as Customer satisfaction, Customer Engagement into the Brand Loyalty model.
In addition, the object of research in the next study can be added with more fast fashion brands,
or it can compare fast fashion brands with sustainable fashion brands.
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