How Pricing and Promotion Strategies Influence Customer Satisfaction in Sustainable Fashion
Jialiang Yang, Hai Guo, and Shaobo Wei
International Journal of Electronic Commerce,
Volume 29, Number 2, 2025, pp. 210-234.
Abstract:
The intensifying competition within the online sustainable fashion market is driving retailers to rethink their pricing and promotional strategies. Drawing on optimal distinctiveness theory, this study investigates how sustainable fashion retailers can boost customer satisfaction by strategically aligning markup pricing with narrative promotion. By analyzing a dataset of 2,056 product listings and 97,089 customer reviews, we uncover an inverted U-shaped relationship between markup pricing and customer satisfaction, along with a direct positive effect of narrative promotion distinctiveness on customer satisfaction. Moreover, narrative promotion distinctiveness indirectly accentuates the inverted U-shaped impact of markup pricing on customer satisfaction. These findings suggest that a well-coordinated pricing and promotion strategy, leveraging optimal distinctiveness, can significantly enhance customer satisfaction. Our study elaborates theory on optimal distinctiveness by highlighting the critical roles of pricing and promotional strategies. We also offer practical insights for sustainable fashion retailers seeking to strengthen their competitive positioning and enhance customer engagement in a rapidly evolving market.