Behavioral Economics in Green Marketing: Impact of Consumer Behavior on Sustainable Business Practices in the Fashion Industry

Abstract

Fashion industry has long been a significant contributor to environmental waste, yet there has been a shift towards eco-friendly practices as consumer awareness grows. This paper aims to explore how behavioural economics can be applied to ecological marketing interventions within the fashion industry, with a focus on green products and sustainable practices. It examines the role of cognitive biases, social norms, and emotional drivers in shaping consumer preferences for eco-friendly fashion. Additionally, the paper empirically investigates how selected fashion brands leverage these insights to foster climate-conscious purchasing behaviours, thereby contributing to the achievement of Sustainable Development Goals (SDGs), specifically SDG 12 (Responsible Consumption and Production) and SDG 13 (Climate Action). By reviewing successful green marketing strategies and consumer behaviour, this paper provides valuable insights for businesses on implementing effective sustainable marketing strategies that align with global sustainability initiatives. The findings suggest that strategies such as eco-labeling, transparency, social proof, and emotional branding can help shape consumer behavior and contribute to global sustainability goals. The study highlights the importance of understanding consumer psychology and behavior in promoting sustainable fashion consumption.