Investigating consumer attitudes and intentions toward online fashion renting retailing

Journal of Retailing and Consumer Services 52 (2020) 101892

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Journal of Retailing and Consumer Services journal homepage: www.elsevier.com/locate/jretconser

Investigating consumer attitudes and intentions toward online fashion renting retailing

T

Stacy H.N. Leea,*, Pui-Sze Chowb a b

Department of Nutrition, Hospitality and Retailing, College of Human Sciences, Texas Tech University Lubbock, TX, 79409, USA Institute of Textiles and Clothing, Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong

ARTICLE INFO

ABSTRACT

Keywords: Online fashion renting Access-based consumption Sharing economy Consumer studies

Due to growth of access-based consumption businesses, it is important to understand how consumers perceive online fashion renting services. Based on two theories, the Theory of Reasoned Actions and expectancy-value approach, this study aims to examine the influence of consumers' attitudes and subjective norms on their intentions to participate in online fashion renting, and to investigate behavioral beliefs that may cause them to form favorable intentions toward online renting. In order to do this, a total of 300 sample surveys were collected from U.S. consumers. To assess the respective measurement model, confirmatory factor analyses were performed, and a structural path analysis was performed to verify the hypothesized relationships. This study empirically asserts that attitudes and subjective norms are key predictors of consumers' intentions to participate in online fashion renting. Consumers' attitudes toward online fashion renting were determined by assessing their perceptions of its relative advantages, compatibility, ownership, and ecological value. While acknowledging the influence of subjective norms and previous fashion rental experience, online fashion rental platforms are also advised to engineer strategies to engage consumers in this practice and to encourage peer referrals. This study sheds light on the determining factors that shape consumers’ attitudes towards and intentions to participate in online fashion renting, from which appropriate business strategies could be devised to enhance consumer engagement and expand the online fashion rental market.

1. Introduction Access-based consumption, defined as the peer-to-peer sharing of underutilized products and services, has become prominent in different contexts such as car sharing (Schaefers et al., 2016), accommodation sharing (Mohlmann, 2015), and music streaming (Sinclair and Tinson, 2017). Recently, the concept of the sharing economy has also emerged in the fashion industry in the form of online fashion renting. Advances in e-commerce technology have made online fashion renting more convenient and accessible, and consumers' demand for more affordable and sustainable fashion items has accelerated the growth of accessbased consumption in the fashion industry (Cartner-Morley, 2017). In fact, the online fashion rental market has recently been expanding exponentially in many countries; successful examples include Girl Meets Dress in the U.K., Rent the Runway in the U.S., Meilizu in China, LendMyTrend, and HUMM (Edbring et al., 2016; Lai et al., 2018). Since 2009, the New York-based online fashion rental platform Rent the Runway's revenue has surpassed $100 million, and its value was estimated at over $600 million in 2016 (O'Connor, 2016). The outstanding

*

performance of the access-based fashion business model has drawn both the attention and anxiety of many fashion retailers (Moeller and Wittkowski, 2010; Nicolaou and Vandevelde, 2017). While it is generally perceived that the symbolic nature of apparel products hinders access-based consumption, Park and Armstrong (2017) argued that political consumerism and convenience encourages consumers' participation in such modes of consumption. On the other hand, customers do not have full property rights to access-based products and are thus free from the risks and responsibilities associated with ownership. (see Fig. 1) More importantly, due to the substantial increase in apparel and fashion-related products from fast fashion's attempts to avoid “fashion datedness,” damages to garments, and quality issues (Armstrong and Lang, 2013, p.1), fashion retail businesses strive to solve such problems while not to jeopardizing their financial performance. On the other hand, there is a strong push for more sustainable solutions to the consumption of apparel, which has contributed to the growth of online fashion rental platforms, as the fashion industry has long been severely criticized as one of the largest polluters in the world (Sweeny, 2015).

Corresponding author. E-mail addresses: [email protected] (S.H.N. Lee), [email protected] (P.-S. Chow).

https://doi.org/10.1016/j.jretconser.2019.101892 Received 28 October 2018; Received in revised form 5 June 2019; Accepted 23 July 2019 0969-6989/ © 2019 Elsevier Ltd. All rights reserved.

Journal of Retailing and Consumer Services 52 (2020) 101892

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Similar to the time-honored traditions of swapping and sharing garments with others, access-based apparel can put more emphasis on sustainable consumption by helping reduce material waste and focusing on better customer satisfaction (Johnson et al., 2016). Based on Ajzen and Fishbein (1980) Theory of Reasoned Action (TRA), Johnson et al. (2016) found that attitudes and subjective norms toward collaborative consumption experiences could positively influence consumers' intentions to participate in online access-based apparel consumption. They emphasized that personal integrity and previous collaborative consumption experience could lead to strong and positive attitudes toward online access-based apparel consumption. On the other hand, the theory of expectancy-value approach asserts that behavior or behavioral intentions are a function of value expectancy, or the evaluation of which object has certain attributes and the value placed on those attributes (Olsen and Skallerud, 2011; So et al., 2005). Based on the expectancy-value approach, both the salience and relevance of attributes that could potentially influence consumers' attitudes towards online fashion renting in terms of the following four factors are discussed in this study: relative advantages, compatibility, ownership, and ecological importance. Despite the potential of the online fashion rental market, little is known regarding consumers' perceptions of online fashion renting and which factors affect consumers' intentions to rent fashion items online. To bridge this gap, the objectives of this study are two-fold: (1) to examine which of consumers' attitudes and social norms influence their perceptions of online fashion renting under the framework of the Theory of Reasoned Action; and (2) to investigate behavioral beliefs towards online fashion renting based on the performance expectancy theory. These findings can thus provide better insights to help understand this fast-emerging fashion business model by examining the antecedents that shape consumers’ attitudes towards and intentions to participate in online fashion renting.

2. Literature review and hypothesis development 2.1. The theory of Reasoned Action and online fashion renting The seminal Theory of Reasoned Action (TRA) (Ajzen and Fishbein, 1980) explains the psychological cognitive processes involved when consumers make decisions. It has been predominately used to predict behaviors and willingness to behave in a specific manner as determined by a person's attitude (Han et al., 2010; Yeo et al., 2017). Extensive empirical evidence substantiates the claim that a positive attitude towards online shopping produces a stronger intention to shop online (Ha and Stoel, 2009), as does environmentally-friendly behavior such as recycling (Davies et al., 2002), purchasing green products (Paul et al., 2016), and donating used clothing (Ha-Brookshire and Hodges, 2009). Ajzen and Madden (1986) addressed individuals' intentions to perform specific behaviors, which can be formed through a combination of both attitudes and subjective norms. In the context of online fashion renting, consumers are involved in access-based consumption, with “transactions that may be market mediated in which no transfer of ownership takes place” (Bardhi and Eckhardt, 2012, p.881). This indicates a fundamental difference from conventional fashion purchasing. However, one's behavioral intentions toward online fashion renting reflects the relative probability that s/he is willing to rent fashion items online when compared with intentions to purchase and own the items. From this aspect, evaluating attitudes toward online fashion renting involves determining an individual's beliefs related to the online accessbased consumption of fashion items and apparel (e.g., believing that renting fashion items online is useful), as well as the possible consequences of the online rental of fashion items (e.g. believing that renting fashion items online is worthy). Defined as “the perceived social pressure to perform or not to perform a behavior” (Ajzen, 1991), subjective norms are reflective of other important expectations and social pressures. Social influence (e.g. word of mouth) may play a significant role in shaping one's intention to perform a given behavior, as individuals are more inclined to behave in ways that they believe their significant others will endorse. Extant literature has demonstrated the positive effect of subjective norms on

Fig. 1. Conceptual framework of the study.

2

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S.H.N. Lee and P.-S. Chow

various behaviors such as green consumption (Khare, 2015; Tsarenko et al., 2013), online information searching and shopping (Belanceh et al., 2012; Shim et al., 2001), and specifically online clothing shopping (Kim et al., 2003). In the context of online fashion renting, subjective norms emphasize the influence of others' opinions (such as close friends and relatives) on one's intentions to rent fashion items online. Certain aspects of online fashion renting are predicated on the rationale for the sustainable use of fashion items. The renting practice may thus create a favorable impression on others who are green-conscious. The approach of online fashion renting is very similar to that of online shopping in many ways, such as searching for products and information, as well as the online transaction procedures. Nevertheless, online fashion renting, as a form of accessed-based consumption, is likely to contribute to environmental sustainability as it maximizes the utilization of fashion items and possibly reduces clothing waste. A recent study by Johnson et al. (2016) found that attitudes and subjective norms concerning the collaborative consumption of apparel influenced behavioral intentions towards online apparel renting in those who had previous experience with the collaborative consumption of apparel offline. Thus, based on the framework of the TRA in the context of online fashion renting, the following hypotheses were formed:

attributes in forming judgements and making choices (Olsen and Skallerud, 2011; Van Ittersum et al., 2007). Ownership and ecological significance are two distinct and important attributes of online fashion renting. For some people, non-ownership and the transfer of ownership can reflect their personal values in pursuing access-based consumption (Belk, 2014). In addition, although ecological benefits can sometimes be at odds with convenience, individuals who are highly concerned about sustainability would be more likely to have positive attitudes toward access-based consumption behaviors (Hamari et al., 2016). Thus, the ecologically sustainable aspect can be regarded as further proof of the relevance of attributes to personal values in determining consumers’ participation in access-based consumption. In light of the above, this study investigates both the salience and relevance of attributes that could potentially influence consumers’ attitudes towards online fashion renting in terms of the following four factors: relative advantages, compatibility, ownership, and ecological importance. 2.2.1. Relative advantage Relative advantage refers to the extent to which an innovation outperforms existing ideas or practices (Rogers, 2003). Previous studies have identified relative advantage, compatibility, and outcome expectations as major aspects of the functional performance of a behavior. In particular, these factors were found to be the most salient determinants to predict behaviors such as the adoption of online channels (Kim et al., 2008; Lennon et al., 2007; Liu and Forsythe, 2004). A recent study empirically illustrates that flexibility, economic considerations, temporary use, and environmental reasons are some of the primary motivations for young consumers to engage in renting and collaboratively consuming home furnishing products (Edbring et al., 2016). Also, a study by Mohlmann (2015) found that conventional reasons such as saving money and maximizing utility are primary motivations for participating in the sharing economy. Online fashion renting offers advantages over conventional purchasing in a number of ways which allow consumers to wear desirable fashion items, especially those from designer labels, at affordable prices. In keeping with the short fashion cycle, online fashion renting allows consumers to alter their outfits more frequently within a short period of time at a reasonable cost (Lang et al., 2016). Moreover, as consumers are not provided with full property rights to the rented fashion products, they are free from the risks and responsibilities associated with ownership, such as cleaning, storage, and disposal (Bocker and Meelen, 2017). Therefore, the following hypothesis was formed:

H1. Attitudes toward online fashion renting have a positive impact on a consumer's intention to pursue online fashion renting. H2. Subjective norms have a positive impact on a consumer's intention to pursue online fashion renting. 2.2. Expectancy-value and behavioral beliefs towards online fashion renting Within the framework of TRA, behavioral beliefs refer to perceptions of the consequences (Ajzen and Fishbein, 1980; Ajzen and Fishbein, 1977), outcome expectancies (Bandura, 1977), or costs and benefits (Becker, 1974), of a behavior. Based on these behavioral beliefs and associated evaluations, individuals are presumed to develop positive or negative attitudes toward a specific behavior (Ajzen, 2006). Ajzen (2006) emphasized that if individuals perceive advantages or beneficial attributes for performing the behavior, they tend to develop a favorable attribute toward that behavior. In contrast, when individuals perceive more disadvantages than advantages to performing the behavior, they tend to form negative attitudes toward such behavior. In this sense, the expectancy-value theory has been predominantly used as a theoretical approach in studying online shopping behavior (Hu and Leung, 2003; Lim and Dubinsky, 2004). Littlejohn (1989) defined the expectancy-value approach as when “people orient themselves to the world according to their expectations (beliefs) and evaluations'’ (p.275). The expectancy-value approach asserts that behavior or behavioral intentions are a function of value expectancy or evaluation in which an object has certain attributes and thus determines the value individuals place on those attributes (Ajzen and Fishbein, 1980; Olsen and Skallerud, 2011; So et al., 2005). In other words, Palmgreen (1985) explained that ‘‘value expectancy or beliefs is the perceived probability that an object possesses a particular attribute or that a behavior will have a particular consequence, while evaluation means the degree of affect, positive or negative, toward an attribute or behavioral outcome.” Based on the expectancy-value approach, the importance of online shopping in the marketing literature has often been discussed as salience and relevance. Salience explains attributes that are mostly accessible when thinking about or seeing an object (Higgins, 1996). Previous studies found that relative advantage and compatibility are the most salient determinants to predict behaviors such as the adoption of an online channel (Kim et al., 2008; Lennon et al., 2007; Liu and Forsythe, 2004; Walker et al., 2016). On the other hand, the relevance of attributes reflects personal values and determines the importance of those

H3. The relative advantages of participating in online fashion renting have a positive impact on consumers' attitudes toward this practice. 2.2.2. Compatibility Compatibility concerns the extent to which an innovation does not deviate from the existing values, experiences, and needs of potential adopters (O'Cass and Fenech, 2003; Rogers, 2003). It is the most prominent characteristic that reflects how well an innovation is perceived to be related to perceived needs (Walker et al., 2016). Online fashion renting fulfills all the functions of online fashion shopping, except for the fact that the consumers do not own the fashion items. They have to return the rented items after the rental period, which is usually conveniently arranged by the online fashion rental companies. The procedures of online fashion renting are very similar to those involved in online purchasing, which should create familiarity and comfort for potential renters. Therefore, the following hypothesis was formed: H4. Perceived compatibility in online fashion renting has a positive impact on consumers' attitudes toward online fashion renting. 2.2.3. Psychological ownership Psychological ownership is defined as a “state where an individual feels as though the target of ownership or a piece of that target is 3

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S.H.N. Lee and P.-S. Chow

Table 1 Respondents’ profiles (N = 300). Freq.

%

Gender

Female Male

152 148

51% 49%

Age

18–25 26–35 36–45 46–55

72 75 75 78

24% 25% 25% 26%

Annual Income

Less than $10,000 $10,000 - $29,999 $30,000 - $59,999 $60,000 - $99,999 $100,000 or more

61 82 92 45 20

20% 27% 31% 15% 7%

Previous Fashion Rental

Yes No

71 229

24% 76%

Occupation

Education

Freq.

%

Office worker - junior level*1 Managerial or professional*

30

10%

72

24%

Manual worker*3 Self-employed Student Unemployed Retired or others

42 32 31 50 42

14% 11% 10% 17% 14%

Less than high school High school graduate College or bachelor degree Doctorate or professional degree

9 117 138

3% 39% 46%

29

10%

Notes. *1: e.g. administrative/clerical; *2: e.g. lawyer, doctor, teacher, etc.; *3: e.g. worker in factory, construction, mechanic, salesperson, waiter, etc.

therefore contributes to environmental sustainability. We therefore posit:

“theirs” (Pierce et al., 2001a, 2001b, p.5). Pierce et al. (2001a, 2001b) proposed three routes that can lead to psychological ownership: investing the self into the target, controlling the target, and coming to intimately know the target. People with strong psychological ownership typically feel liable for their possessions. In other words, a person may display accountability for the protection, maintenance, care of, and possibly even defend their possessions when necessary (Dawkins et al., 2017). This indicates that having to own products and services may allow people to develop feelings of strong attachment to their possessions, while renting products may only provide instrumental utility (Bardhi and Eckhardt, 2012; Paundra et al., 2017). Consequently, people with high psychological ownership would be more likely to value the possession of products more strongly than people with low psychological ownership. For consumers who display strong ownership of products and services, the practices and processes involved in online fashion renting may be perceived as risky and inconvenient. This in turn may cause them to consider the practice as inferior to conventional fashion purchasing (Bocker and Meelen, 2017). Therefore, the following hypothesis was formed:

H6. Ecological importance has a positive impact on attitudes towards online fashion renting. 3. Research methodology 3.1. Data collection and sample characteristics This study employed an online survey company, which is an economical way to collect over 200 sets of data (Lavrakas, 2008). Prior to the formal survey, a pilot study had been performed to test the questionnaire's design. Fifteen people from the relevant populations in the U.S. participated in the pilot study. All participants understood the instructions and wording of the survey clearly and no difficulties or issues relating to measurement items were reported. Accordingly, the questions did not need to be modified prior to the final survey. The main survey employed quota sampling to guarantee a balanced composition of the sample according to gender and age, so that perceptions from both genders and different age groups could be captured. A reputable research company in the U.S. was commissioned to conduct the online survey for two weeks in 2018. To ensure the quality of the data and to minimize possible unengaged responses, one quality control question was included, which read, “I will answer neither for this line.” Only respondents who replied in the affirmative were treated as valid candidates and were directed to the formal survey questions. The target sample framework was comprised of members of the U.S. general public over age 18, and a total of 315 responses were solicited. After excluding fifteen unengaged responses, the final effective sample size was 300. The final sample was composed of around 51% females, and 75% were younger than 45 years of age. In terms of occupation, slightly more than one-third (34%) of the respondents were office workers, and 47% reported an annual income level between $10,000$29,999. Nearly a quarter (24%) of them had previous fashion rental experience (Table 1) (see Table 1).

H5. Perceived ownership has a negative impact on consumers' attitudes toward online fashion renting. 2.2.4. Ecological importance Botsman and Rogers (2010) maintained that consumers' participation in the sharing economy or access-based consumption could be potentially beneficial to the environment, as less resources are used. Whereas the environmental aspects of access-based consumption in different sectors are varied, consumers' perceptions towards their respective ecological importance may also vary. For instance, Bocker and Meelen (2017) noted that contributing to a healthy natural environment is of particular importance to those who participate in car and ride sharing but is a less significant factor for participation in accommodation sharing. However, Hamari et al. (2016) showed that users' perceptions of the sustainability of access-based consumption positively affects their attitudes towards it. Similarly, Laroche et al. (2001) demonstrated that perceptions of diminished ecological impact have a significantly positive effect on consumers’ willingness to pay more for green products. They further demonstrated that the group of consumers who are willing to pay more for green products do not feel inconvenienced by environmentally-friendly practices, as they consider such practices to be important. As a sustainability-conscious practice, it seems natural to expect similar perceptions to hold true for online fashion renting. Since the renters do not own the fashion items, online fashion renting helps mitigate the clothing disposal problem and

3.2. Questionnaire design Existing measurement items were adapted with modified wordings to fit the context of this study. Intention to participate in online fashion renting was assessed using a two-item scale, taken from Karahanna et al. (1999). Attitude was measured using a five-item scale recommended by Ajzen (2006), whereas subjective norms were evaluated using a four-item scale employed by Ajzen (2006) and Ozaki (2011). 4

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literature (Hu and Bentler, 1999), it was concluded that the measurement model had established a good fit (Table 2). Construct reliability, and convergent and discriminant validity, were established with respect to the standards established by the literature (Hair et al., 2010). All variables had a composite reliability (CR) value greater than 0.7, implying that the construct was reliable. The factor loadings of all items were statistically significant (p < 0.001) and above the 0.40 threshold (ranging from 0.67 to 0.95). The average variance extracted (AVE) of all variables exceeded 0.5. Thus, both the factor loadings and the AVE ascertained convergent validity. Individual variables had a maximum shared variance (MSV) less than their respective AVE; hence, discriminant validity was verified (Table 3). The CFA marker technique (Williams et al., 2010) was employed to detect the possible existence of CMV. First, EFA was conducted on the seven variables and on the marker variables to verify that they were all distinct and reliable (KMO = 0.888, total variance explained = 70.8%). Then, the number of models were compared and evaluated. Specifically, CFA was conducted with the marker variable and covaried with all the focus variables in the proposed measurement model, resulting in a good fit (CFI = 0.959; SRMR = 0.050; RMSEA = 0.051). Another model (the unconstrained model) was assessed by treating the marker variables as common latent factors that covaried with all items of the focus variables and achieved an acceptable fit (CFI = 0.95; SRMR = 0.055; RMSEA = 0.06). The third model (the zero-constrained model) was evaluated after setting all factor loadings from the marker variable's latent factor to manifest the items at zero, demonstrating acceptable fit (CFI = 0.934; SRMR = 0.111; RMSEA = 0.066). A chisquared difference test was then conducted between the unconstrained model and the zero-constrained model ( X 2 = 113.774, df = 23, p < 0.001). To further test whether the response bias was evenly distributed across variables, the fourth model (the equal-constrained model) was constructed, which is similar to the zero-constrained model except that all factor loadings between the marker variable's latent factor and manifest items were constrained to be equal. A chi-squared

Perceptions of relative advantage and compatibility were measured on both a four-item and a three-item scale, respectively, both of which were modified from scales developed by Karahanna et al. (1999). Perceptions of ownership in online fashion renting were measured using a self-developed nine-item scale with reference to items from Edbring et al. (2016) and Laroche et al. (2001). Perceptions of the ecological importance of this practice were measured using a 3-item scale from Laroche et al. (2001). Lastly, the demographic profiles of the respondents were also captured, such as gender, age, education level, and annual income. A number of ex ante precautions were undertaken in the questionnaire design to minimize the possible influence of common method variance (CMV) (Podsakoff et al., 2003). Different measurement scale endpoints and formats were employed for the predictor and criterion variables to reduce scale endpoint commonalities. A marker variable was also included to control for the method bias “capturing into one or more of the sources of bias that can occur in the measurement context for given substantive variables being examined, given a model of the survey response process” (Williams et al., 2010, p.507). As marker variables should be theoretically unrelated to the other variables, the scale measuring attitude towards usage of social networks adapted from Teo et al. (1999) was selected as the marker variable. 4. Analysis and results 4.1. Confirmatory factor analysis Confirmatory factor analysis (CFA) was performed on the resulting factor structure with the following model fit indices: the chi-squared statistic per degree of freedom (CMIN/DF = 2.04) was below 3; the comparative fit index (CFI = 0.955) was greater than 0.95; the standardized root mean square residual (SRMR = 0.054) was less than 0.08; and the root mean square error of approximation (RMSEA = 0.059) was less than 0.06. In reference to the thresholds recommended by the Table 2 Results of exploratory and confirmatory factor analyses. Measurement Item

Perceived Relative Advantage (Cronbach's alpha = .867; CR = .869; AVE = .626, MSV = .537) RA_01 Renting fashion items online would enable me to get the apparel I want more quickly. RA_02 Renting fashion items online would enhance my effectiveness in getting the apparel I want. RA_03 Renting fashion items online would enable me to get the apparel I want more easily. RA_04 Renting fashion items online would enable me to get the apparel I want more cheaply. Perceived Compatibility (Cronbach's alpha = .905; CR = .906; AVE = .762; MSV = .537) CP_01 Renting fashion items online would be compatible with most aspects of how I shop for apparel. CP_02 Renting fashion items online would fit my style of shopping. CP_03 Renting fashion items online would fit well with the way I like to shop for apparel. Psychological Ownership (Cronbach's alpha = .750; CR = .753; AVE = .505; MSV = .083) PO_02 The money paid for renting fashion items online is not worthwhile since I cannot own the items. PO_07 Not able to own the fashion items I love is annoying. PO_09 I want to own the fashion items I like and feel that they are mine. Perceived Ecological Importance (Cronbach's alpha = .898; CR = .900′ AVE = .750; MSV = .235) EI_01 Renting fashion items online will reduce pollution. EI_02 Renting fashion items online is important to save natural resources. EI_03 Renting fashion items online will save land that would be used as dumpsites for apparel disposal. Attitude (Cronbach's alpha = .916; CR = .918; AVE = .693; MSV = .314) AT_01 Harmful – > Beneficial AT_02 Pleasant – > Unpleasant (reverse coded) AT_03 Good – > Bad (reverse coded) AT_04 Worthless – > Valuable AT_05 Enjoyable – > Unenjoyable (reverse coded) Subjective Norm (Cronbach's alpha = .873; CR = .882; AVE = .717; MSV = .485) SN_01 Most people who are important to me think that I should rent fashion items online. SN_03 Most people who are important to me rent fashion items online. SN_04 The people in my life whose opinion I value rent fashion items online. Online Fashion Rental Intention (Cronbach's alpha = .926; CR = .927; AVE = .863; MSV = .485) INT_01 I intend to rent fashion items online within the next six months. INT_02 During the next six months, I plan to experiment with or regularly do online fashion renting.

EFA loading

CFA loading*

0.67 0.77 0.77 0.56

0.81 0.82 0.84 0.70

0.68 0.68 0.71

0.85 0.88 0.89

0.58 0.73 0.79

0.67 0.72 0.74

0.79 0.88 0.76

0.82 0.93 0.85

0.55 0.82 0.92 0.64 0.81

0.71 0.86 0.91 0.80 0.87

0.44 0.75 0.97

0.70 0.89 0.93

0.66 0.79

0.95 0.91

Notes. * All CFA loadings significant at p < 0.01. CR = Composite Reliability; AVE = Average Variance Extracted; MSV = Maximum Shared Variance. 5

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Table 3 Inter-construct correlations and maximum shared variance (MSV). Correlation

RA CP PO EI ATT SN INT

Mean

SD

RA

CP

RD

EI

ATT

SN

INT

13.54 9.13 13.14 9.44 22.36 7.44 6.70

3.608 3.197 3.219 2.966 7.636 3.162 3.630

0.791 0.733** −0.225** 0.404** 0.560** 0.420** 0.505**

0.873 −0.179* 0.460** 0.530** 0.560** 0.632**

0.71 −0.131† −0.275** −0.288** −0.273**

0.866 0.475** 0.446** 0.485**

0.833 0.388** 0.525**

0.847 0.697**

0.929

Notes. **p < 0.01; *p < 0.05; †p < 0.10. Individual constructs' MSV are shown on the diagonal. Relative Advantages: RA; Compatibility: CP; Psychological ownership: PO; Ecological Importance: EI; Attitude: ATT; Subjective Norm: SN; Online Fashion Rental Intention: INT.

different test was performed between the unconstrained model and the equally-constrained model, and the result showed that the two models were not significantly invariant ( X 2 = 55.925, df = 22, p < 0.001). Accordingly, factor scores were imputed by keeping the marker variable's latent factor in the measurement model such that the CMV-corrected variables were successfully created for conducting structural path analysis.

Control variables were found to significantly influence the intention to pursue online fashion renting, namely gender (β = −0.09, p < 0.05) and previous fashion rental experience (β = 0.15, p < 0.01). Females and those with previous fashion rental experience were found to have a greater intention to rent fashion items online. In contrast, age, education, and annual income were shown to have no significant impact on intentions to pursue online fashion renting (Table 4).

4.2. Structural model and hypothesis testing

5. Discussion and implications

A structural path analysis with maximum likelihood estimates was performed to test the proposed hypotheses. Control variables including respondents’ gender, age, annual income, education, and previous experience with fashion renting were also incorporated in the analysis to explore their possible influence on intentions to pursue online fashion rentals. The proposed model demonstrated a good fit with the following indices: CFI = 0.98; SRMR = 0.036; RMSEA = 0.078. The R-squares of the variables, “Attitude” and “Online Fashion Rental Intention,” were 0.465 and 0.646, respectively. This indicated that the proposed relationships sufficiently explained the variance in the two variables. All proposed hypotheses were statistically supported except H4. Specifically, intentions to pursue online fashion renting were found to be significantly affected by attitudes (H1: β = 0.28, p < 0.01) and subjective norms (H2: β = 0.58, p < 0.01). Thus, hypotheses 1 and 2 were statistically supported. Additionally, attitude was found to be significantly influenced by perceptions of the relative advantages (H3: β = 0.35, p < 0.01), ownership (H5: β = −0.16, p < 0.01), and ecological impact (H6: β = 0.27, p < 0.01) of online fashion renting, while compatibility (H4: β = 0.12, p < 0.09) was not significantly influenced by attitude. Thus, four hypothesized behavioral believes toward online fashion renting were partially supported in this study.

Due to the growing phenomenon of access-based consumption, particularly in the fashion industry, it is important to understand how consumers can be engaged in collaborative consumption and utilize online platforms for collaborative consumption participation. In order to understand how consumers understand online fashion renting, two grand theories, the Theory of Reasoned Action (TRA) and the performance expectancy theory, were employed. The findings of this study suggest that the TRA and performance expectancy theories are complimentary in understanding consumers' attitudes toward online fashion renting. This study supports previous empirical evidence (Davies et al., 2002; Ha and Stoel, 2009; Ha-Brookshire and Hodges, 2009) on Ajzen and Fishbein (1980) TRA which explains the psychological cognitive processes in consumers' decision making processes, and that individuals' intentions to perform specific behaviors can be formed from a mixture of both attitudes and subjective norms. Consistent with the TRA, consumers' intentions to rent fashion items online is influenced by their attitudes toward the practice as well as by subjective norms. Our findings suggest that subjective norms have a greater impact than attitudes on intentions to pursue online fashion renting. Such results may be partly due to the fact that renting fashion items is not common amongst consumers, as slightly less than 25% of

Table 4 Results of the structural path model.

Hypothesis H1 H2 H3 H4 H5 H6

Path

Standardized regression coefficient (beta)

Attitude → Online fashion rental intention Subjective norm → Online fashion rental intention Relative advantages → Attitude Compatibility → Attitude Psychological ownership → Attitude Ecological importance → Attitude

0.28 0.58 0.35 0.12 −0.16 0.27

** ** ** † ** **

−0.09 Insignificant Insignificant Insignificant 0.15

*

Effects of control variables Gender → Online fashion rental intention Age → Online fashion rental intention Education → Online fashion rental intention Annual Income → Online fashion rental intention Previous fashion rental experience → Online fashion rental intention

Notes. **p < 0.01; *p < 0.05; †p < 0.10. 6

**

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the respondents had previous fashion rental experience. When considering whether or not to engage in an unfamiliar activity such as online fashion renting, consumers may tend to seek information and rely on advice from those in their social circle to determine its potential usefulness (Schepers and Wetzels, 2007). This could suggest that managers and retail businesses form online communities to share consumers’ experiences with collaborative consumption or to utilize ambassadors and key opinion leaders to inform consumers and positively influence their decisions to pursue online fashion renting. In order to develop a strong and positive online community related to online fashion renting, it is also important to emphasize engagement with environmental consciousness when making decisions, which could tie into consumers' intrinsic motivations (Hamari et al., 2016). Thus, recommendations and testimonials from family and friends could be highly influential in shaping views of online fashion renting as participating in sustainable consumption (Khare, 2015). Our findings suggest that if consumers have previous fashion rental experience, they may have positive intentions to pursue online fashion renting. This implies that consumers with previous online fashion rental experience could in turn provide strong referrals and word-of-month advertising to potential renters. To engage consumers who have rental experience, managers could provide referral incentive programs that encourage seasoned renters to share their experience with peers and thus expand the online fashion rental market. More importantly, the findings of this study highlight that both functional performance and intrinsic motivations are highly prominent in forming beliefs toward online fashion renting. Similar to what previous studies' findings that have shown among online shopping consumers (Fiore et al., 2005; Kim et al., 2008; Lennon et al., 2007; Liu and Forsythe, 2004), this study found that consumers were highly engaged in evaluating online fashion renting based on the performance expectancy theory. In particular, the relative advantages of online fashion renting had the greatest impact on consumers' attitudes, followed by ecological importance, and ownership. This indicates that utilitarian values, such as saving money and maximizing utility, are still the dominant factors in consumers’ decisions to pursue access-based consumption such as online fashion renting (Mohlmann, 2015). To highlight the aspects of functional and utilitarian performance, online fashion rental platforms could enhance a wider range and variety of available fashion items, as well as flexible arrangements for deliveries and returns. In order to emphasize functional performance, rental businesses could provide flexible rental periods with different pricing options, which may attract more consumers who are sensitive about the efficiency of online fashion renting. A recent study also suggested that customer-focused communication can induce consumer acceptance of online fashion renting and enhance the empathic capabilities of online fashion businesses (Adam et al., 2018). On the other hand, the impact of consumers' ecological concerns on their attitudes toward online fashion renting often overshadows their perceptions of ownership. Such findings echo the extant literature, demonstrating that consumers are increasingly aware of the environmental benefits of access-based consumption practices such as online fashion renting (Hamari et al., 2016), and such awareness may precede their concerns for the associated inconvenience. Likewise, retail businesses pursuing access-based consumption should strive to engage consumers in sustainability as a practice that “optimizes the environmental, social, and economic consequences of consumption in order to meet the needs of both current and future generations” (Luchs et al., 2011, p. 2). Apart from educating consumers on the environmental issues present in the fashion industry, online fashion rental platforms could offer more realistic information, such as rates of rental utilization and the corresponding benefits to the environment, to heighten consumers’ awareness of the ecological importance of online fashion renting. In this way, consumers could develop more positive behavioral beliefs toward online fashion renting, and participation in collaborative consumption behavior. Moreover, if fashion rental businesses provide

more transparency about the true costs of caring for and managing inventories of unwanted and outdated fashion items, then consumers may be encouraged to engage in responsible and sustainable collaborative consumption behaviors. In addition, these findings highlight that consumers with strong psychological ownership have negative attitudes toward online fashion renting. As the fundamental concept of access-based consumption involves sharing products by renting and not owning or having the responsibilities associated with ownership (Dawkins et al., 2017; Pierce et al., 2003), renting fashion products does not appeal to consumers with strong psychological ownership. In order to engage individuals who may have a strong sense of psychological ownership toward fashion items, fashion rental businesses could offer better pricing strategies than other conventional retailers or a greater selection of unique and exclusive items. For instance, a fashion renting company can promote the rental of unique fashion pieces as an alternative that can satisfy a need when consumers cannot access these items or buy couture products. Moreover, providing more brands and exclusive fashion goods could attract consumers who are sensitive about fashion or who prefer to own collectible and rare items. However, this study found that compatibility is insignificant in shaping consumers’ attitudes toward online fashion renting. Since there are limitations on the accessibility of a number of products and touchand-feel trials, consumers may feel there is lack of compatibility in shopping for fashion items through online fashion renting platforms. In order to increase compatibility, managers could provide brick-andmortar stores or/and incorporate virtual reality for these consumers to experience fashion rental offline. Therefore, future research could investigate how compatibility could be enhanced so that consumers can change their attitudes toward online fashion renting without facing the incompatibility between conventional brick-and-mortar shopping and online fashion renting. The findings of this study suggest that gender and previous experience with fashion renting significantly affects consumers’ intentions to pursue, or continue to participate in, online fashion renting. Female respondents were found to have stronger intentions to rent fashion items online. Prior studies have suggested that female consumers are more likely to purchase apparel online (Kim et al., 2003) and are also more price-conscious and fashion conscious than their male counterparts (Seock and Bailey, 2008). These characteristics of female consumers may explain their greater interest in renting fashion items online, which offers the utilization of a wide variety of name brand and fashionable items at affordable prices. This may be because females are often more sensitive about fashion, and numerous fashion renting businesses, such as the Rent the Runway, specifically target a female market. This presents challenges for managers and fashion retailers to attract males to online fashion renting. While online fashion rental platforms should continue to strengthen their recruitment efforts toward female consumers, they also should explore and develop strategies to extend their customer base to attract more male consumers. According to a study by Hansen and Jensen (2009), male consumers are considered to be more results-oriented when fashion shopping, usually shopping for a specific purpose (e.g. for fashion items for specific occasions). In this respect, online fashion rental platforms could emphasize their utility by providing more choices of menswear for special occasions. For instance, managers could offer guides on how to wear certain items, with mix and match styles for special occasions, and provide fashion stylists or helpers to suggest fashion items. As males are becoming more interested in fashion, several female oriented fashion brands, such as Stella McCartney and Isabel Marant, have launched menwear collections (Rabkin, 2018). In other words, by expanding into menswear with collections for different occasions, categories, and brands, online fashion rental companies could capture male consumers who are interested in fashion. One example of a business targeting males is Outfittery.com, which was established in 2012 to serve as an online personal shopping service. By eliminating shopping but offering 7

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the right clothes with the help of both Artificial Intelligence and reallife stylists, Outfittery gained approximately 500,000 customers throughout eight European countries in 2018 (Knoles, 2018). In this sense, further streamlining the rental process could enhance the efficiency of online fashion rental platforms and attract more male consumers as well.

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