| Summary: | Purpose – The purpose of this study is to explore how environmentally sustainable efforts, in terms of circular economy (CE) initiatives, are affecting the customer-based brand equity (CBBE) of fast fashion brands. By considering the attitudes of Generation Z, fashion companies can build brands that respond to the environmental requirements of future decision-makers. Therefore, the following research questions are derived: What are Generation Z’s self-disclosed perceptions of fast fashion brands conducting circular economy initiatives? and How do the perceptions of Generation Z regarding circular economy initiatives impact the CBBE of fast fashion brands? Method – This master thesis is an exploratory study with an inductive approach. In total, 12 qualitative interviews are conducted, consisting of consumers of fast fashion within Generation Z and currently living in Sweden. The interviews follow a semi-structured approach and in order to analyze the empirical findings, a thematic analysis was executed. Findings – The main findings of this study consist of three overarching themes in terms of Generation Z’s perceptions towards fast fashion brands conducting CE initiatives and its impact on CBBE. The emerging perceptions describe different segments within Generation Z, which have been defined as Positive: Creates Value, Negative: Hypocritical, and Indifferent: Not relevant. Moreover, the results show that a positive perception towards CE initiatives can strengthen the CBBE of fast fashion brands. In contrast, a negative perception causes a small impact on CBBE and may even weaken the brand, whereas an indifferent perception towards CE initiatives has no noticeable impact on the CBBE. Theoretical and practical contributions – The study provides insights into Generation Z's different perceptions regarding CE initiatives and how macro-environmental factors can impact the brand equity of fast fashion brands and consumer perception of these brands. The main findings can assist brand managers to address the different consumer segments and their needs by successfully implementing sustainability activities into the business operations of fast fashion brands.
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