Investigating the impact of environmental factors on the intention to adopt online fashion rental services: The moderating role of personal innovativeness

ABSTRACT Investigating the impact of environmental factors on the intention to adopt online fashion rental services: The moderating role of personal innovativeness Aaron Koopman * Marketing Division, School of Business Sciences, University of Witwatersrand, Johannesburg, South Africa [email protected] * Corresponding author Glerick Mboweni Marketing Division, School of Business Sciences, University of Witwatersrand, Johannesburg, South Africa Louicienne Tougma Management Division, School of Business Sciences, University of Witwatersrand, Johannesburg, South Africa The Retail and Marketing Review Volume 21, Issue 2, November 2025, Pages 242-254 Doi: https://doi.org/10.5281/zenodo.17580309 The fashion industry is under increasing pressure to adopt sustainable practices, owing to the criticism of its detrimental environmental impact, characterised by resource and textile waste, and a significant carbon footprint. In response, online fashion rental services have emerged as a more sustainable alternative, resonating with young, environmentally conscious consumers. Drawing upon the Theory of Planned Behaviour (TPB) and the Diffusion of Innovation (DOI) theory, this study investigated the impact of environmental factors on the intention to adopt online fashion rental services. A quantitative research design and a convenience sampling method were employed, wherein 371 valid responses were collected through an online questionnaire. The data was thereafter analysed using the Partial Least Squares Structural Equation Modelling (PLS-SEM) technique. The findings revealed that past environmental behaviour, environmental awareness, and consumer knowledge have a positive influence on the attitudes towards online fashion rental services. Additionally, attitude exerted a positive influence on behavioural intentions. Personal innovativeness was also found to be a moderator in the relationship between attitude and behavioural intentions. The results contribute valuable insights for marketers and policymakers tasked with promoting sustainable fashion. The research provides a deeper understanding of how Generation Z consumers can be nudged towards an intention to adopt online fashion rental services. Keywords: Attitude, environmental awareness, consumer knowledge, fashion rental services, past environmental behaviour, personal innovativeness 243 The Retail and Marketing Review: Vol21 Issue 2 (2025) ISSN:2708-3209 1. INTRODUCTION The fashion industry is widely regarded as one of the most polluting sectors in the world, consuming vast amounts of raw materials, generating significant waste, and leaving behind a large carbon footprint (Ruiz-Navarro et al., 2024). This narrative has placed pressure on firms and brands to shift towards more sustainable and environmentally conscious consumption practices (Efremov et al., 2022) as consumers are increasingly demanding transparency, ethical responsibility, and eco-friendly alternatives (Lee & Huang, 2020). Aided by technological improvements and the rise of e-commerce, online fashion rental platforms have emerged, serving as a viable alternative to traditional retail models (Ruiz-Navarro et al., 2024). By promoting circular consumption and extending product lifecycles, these platforms offer opportunities to reduce waste and mitigate the industry’s environmental footprint (Djafarova & Bowes, 2021). Despite the positives of these platforms being communicated, Liu et al. (2023) report that older generations are less likely to adopt such sustainable fashion practices. However, Priporas et al. (2017) have noted changes in the consumption habits of another demographic cohort, Generation Z. Generation Z, a consumer group born between the mid-1990s and early 2000s, are reported to have high levels of environmental awareness, denoting that they have a strong understanding, concern, and sensitivity towards environmental issues and the impact that human behaviour has on the physical environment (Ribeiro et al., 2025). Their characteristics reflect a demographic group concerned about fast fashion’s environmental impact and apparel wastefulness (Palomo-Domínguez et al., 2023), and behaviours that are driven by ecological motivations (Pham et al., 2021). Consequently, online fashion rental services emerge as a potential solution, one that is aligned with Generation Z’s inclination towards sustainability. Against this backdrop, the study seeks to investigate the impact of environmental factors on Generation Z’s intention to adopt online fashion rental services. Moreover, personal innovativeness was also examined as a moderator in the relationship between attitude and behavioural intentions. 2. PURPOSE OF THE STUDY The purpose of the study is to investigate the impact of environmental factors on the consumers’ intention to adopt online fashion rental services. Specifically, the study aims to examine the extent to which past environmental behaviour, consumer knowledge, and environmental awareness influence an individual’s attitude towards online fashion rental services, and by extension, the influence of attitude on behavioural intention. In addition, a further assessment is to be conducted to determine whether personal innovativeness acts as a moderator in the relationship between attitude and behavioural intentions. Given the United Nations (UN) Sustainable Development Goals (SDGs) 12 (responsible consumption and production) and 13 (climate action), as well as several studies over the span of a decade (Long & Nasiry, 2022; Mukherjee, 2015; Neumann et al., 2021; Niinimäki et al., 2020) which have critically examined the ecological impact of fast fashion, the study responds to the call to investigate sustainable alternatives by examining Generation Z’s adoption of online fashion rental services and the factors influencing their environmentally responsible consumption intentions. Moreover, the study attempts to investigate how perceptions of sustainability, ethical sourcing, and social responsibility impact decision-making regarding online fashion rental services. The study seeks to provide insights that can inform marketing strategies, business decisions, and policy interventions aimed at promoting sustainable fashion consumption practices among Generation Z consumers. By Investigating the impact of environmental factors on the intention to adopt online fashion rental services … 244 encouraging consumers to rent apparel, they can minimise the need for new garments, resulting in less textile waste and mitigating the industry’s carbon footprint. 2.1 KEY OBJECTIVES 1. To examine the impact of environmental factors (past environmental behaviour, consumer knowledge, and environmental awareness) on the consumers’ attitudes towards online fashion rental services. 2. To investigate the influence of attitude on behavioural intention to use online fashion rental services. 3. To determine the role of personal innovativeness as a moderator in the relationship between attitude and behavioural intentions. 3. THEORETICAL FRAMEWORK This study is grounded on two key theories: the theory of planned behaviour and the diffusion of innovation theory. 3.1 THEORY OF PLANNED BEHAVIOUR Icek Ajzen developed TPB in the late 1980s as an extension of the Theory of Reasoned Action (TRA). The theory of planned behaviour is a widely used framework in explaining and predicting human behaviour (Ajzen, 1991). It has previously been used by Pham et al. (2021) within the domain of online fashion, Ashaduzzaman et al. (2022) in the setting of collaborative consumption, and by Chi et al. (2023) to examine how inherent factors contribute towards proenvironmental behaviour. The theory is useful in that it aligns with the study’s core constructs and is considered flexible and applicable in studying behaviours across different contexts (Rozenkowska, 2023). 3.2 DIFFUSION OF INNOVATION THEORY The diffusion of innovations theory established by Everett Rogers in 1962, investigates how new ideas, products, and technology spread within cultures and societies. The theory provides a foundation for understanding how innovations are adopted and accepted by individuals and organisations over time (Miller, 2015). Within the context of this study, DOI is considered relevant as it is able to identify both the intrinsic and extrinsic motives that influence adoption decisions, highlighting an individual’s tendency to accept novel innovations and ideas (García-Avilés, 2020). In addition, given the significance of personal innovativeness as a construct within this study, including the DOI theory provides a theoretical grounding explaining why individuals with high levels of innovativeness are more likely to adopt novel practices, such as fashion rental services. 4. THEORETICAL MODEL DEVELOPMENT 4.1 PAST ENVIRONMENTAL BEHAVIOUR AND ATTITUDE Past environmental behaviour refers to an individual’s previous sustainable purchasing actions, and communicates the higher likelihood of an individual to continually engage in Pro-Environmental Behaviours (PEB) based on past purchasing actions (Chi et al., 2023). For example, the individuals who recycle, use public transport, and save energy are more inclined to continue such behaviours. PEB is considered an important factor that influences a consumer’s receptiveness towards sustainable alternatives (Chi et al., 2023). 245 The Retail and Marketing Review: Vol21 Issue 2 (2025) ISSN:2708-3209 While the relationship between behaviour and attitude has traditionally been conceptualised as unidirectional, where attitudes influence behaviour (Lee & Huang, 2020; Myin et al., 2023), Ertz and Sarigöllü (2019) present an alternative perspective, positing that past PEB can significantly influence subsequent attitudes towards PEB. However, the scant literature on the influence of pro-environmental behaviour on attitude highlights a relatively underexplored relationship and motivates further investigation. Therefore, the following hypothesis is proposed: H1: Pro-environmental behaviour has a positive influence on consumers’ attitudes towards online fashion rental services. 4.2 ENVIRONMENTAL AWARENESS AND ATTITUDE Environmental awareness, a critical component of the TPB, is defined as the understanding and concern for ecological issues and their implications, and is known to influence attitudes towards sustainable consumption practices (Lee & Huang, 2020). The term is often associated with circular economy and collaborative consumption studies, where the consensus is that consumers with a pro-environmental mindset, that is, high degrees of environmental awareness, have more positive attitudes towards environmentally friendly behaviours such as sustainable fashion consumption (Lee & Huang, 2020). An empirical study conducted by Ogiemwonyi and Harun (2021) observed that individuals with high environmental awareness are more likely to perceive their actions as impactful in mitigating environmental issues, thereby fostering a positive attitude towards eco-friendly behaviours such as using online apparel rental services. The relationship between environmental awareness and consumer attitudes was further substantiated by Ahmed et al. (2021) within a different industry who found that higher environmental awareness correlates with positive attitudes towards purchasing organic food. Given these insights, the following hypothesis is proposed: H2: Environmental awareness has a positive influence on the consumers’ attitudes towards online fashion rental services. 4.3 CONSUMER KNOWLEDGE AND ATTITUDE Consumer knowledge refers to the level of awareness that consumers have regarding environmental damage and is found to exert a positive influence on attitude (Leclercq-Machado et al., 2022). This relationship is reiterated by Chi et al. (2023) who state that higher levels of consumer knowledge on sustainable products lead to a stronger purchase intention; however, a positive attitude is first required. Conversely, a lack of knowledge on sustainable fashion makes it difficult for consumers to have positive and conscious attitudes (Leclercq-Machado et al., 2022). Given that Generation Z consumers (the study’s target population) are often more environmentally conscious (Ribeiro et al., 2025), they might develop a positive attitude towards online apparel rental services as they gain more knowledge about the environmental benefits of reducing fashion waste. Therefore, the following hypothesis is proposed: H3: There is a positive and significant relationship between consumer knowledge and their attitudes towards online fashion rental services. 4.4 ATTITUDE AND BEHAVIOURAL INTENTIONS Attitude refers to a person’s overall positive or negative evaluation of performing a specific action. The construct is strongly associated with the TPB, wherein it is recognised as a key predictor of behavioural intentions (Ajzen, 1991). Previous studies by Lee and Chow (2020) as well as Chi et al. (2023) emphasise the significance of attitude as a Investigating the impact of environmental factors on the intention to adopt online fashion rental services … 246 predictor of behavioural intentions within the sustainable fashion sphere. Moreover, this relationship is further validated by Grilló-Méndez et al. (2025) who advocate for fashion rental as a more sustainable, technology-driven alternative to fast fashion. However, it is unclear whether the consensus reached by the above-mentioned authors also applies to regions where online fashion rental services are still in the infancy stages. Therefore, the following hypothesis is proposed: H4: There is a positive and significant relationship between attitude and behavioural intentions. 4.5 THE MODERATING ROLE OF PERSONAL INNOVATIVENESS Personal innovativeness refers to the degree to which an individual is willing to try new products, technologies, or services ahead of others (Agarwal & Prasad, 1998). In technology‐driven contexts, high personal innovativeness reflects an openness to new digital experiences and a readiness to experiment with emerging services (Jeong & Choi, 2022). Among tech-savvy Generation Z consumers who are typically characterised by comfort with and enthusiasm for new technologies (Ribeiro et al., 2025), personal innovativeness has been linked to stronger adoption intentions. For example, Jeong and Choi (2022) note that individuals high in innovativeness often become early adopters and reflect a greater willingness to embrace change. This narrative can also be extended into other domains, such as online fashion rental services. The relationship between attitude and behavioural intentions is well established in the theory of planned behaviour (Ajzen, 1991), where a positive relationship exists between attitude and behavioural intentions. However, in some cases, an attitude-behaviour gap may exist. This is evident when consumers express a strong motivation to consume responsibly, yet their actions do not align accordingly (Ronda, 2024). While the low price of fast-fashioned goods may be a determining factor (Ronda, 2024), there is reason to believe that personal innovativeness helps overcome the attitude–behaviour gap by reducing risk perceptions, encouraging trial, and reinforcing sustainable attitudes through identity and novelty-seeking, ultimately making adoption more likely (Jeong & Choi, 2022; Wu & Yu, 2022). Based on the above, the following hypothesis is proposed: H5: Personal innovativeness moderates the relationship between attitude and behavioural intentions. Source: Authors’ own construction (2025) FIGURE 1: CONCEPTUAL MODEL 247 The Retail and Marketing Review: Vol21 Issue 2 (2025) ISSN:2708-3209 4.6 METHODOLOGY For this study, the questionnaire items were adapted from existing scales. All the items were measured using a fivepoint Likert scale. An online survey was used to collect 371 valid responses from Generation Z participants using the convenience sampling approach. Participation was voluntary, with participants being recruited from diverse sources, including social media platforms, online forums, and university campuses, ensuring a broad representation across different backgrounds and locations. While this method allowed for the efficient collection of data, it limits the generalisability of the results, as convenience sampling may not fully capture the diversity of perspectives across the study’s population (Bhattacherjee, 2012). 5. RESULTS 5.1 DEMOGRAPHIC PROFILE OF RESPONDENTS TABLE 1: RESPONDENTS’ PROFILE Variable Sub-variable Frequency Percentage Age 18-23 326 87.9 24-29 45 12.1 Total 371 100.0 Gender Male 61 16.4 Female 305 82.2 Prefer not to say 5 1.4 Total 371 100.0 Income R0 - R10 000 162 43.7 R10 001 – R20 000 26 7.0 R20 001 – R30 000 26 7.0 R30 001 – R40 000 13 3.5 R40 000 and above 69 18.6 Prefer not to say 75 20.2 Total 371 100.0 The results depicted in Table 1 indicate that the majority of participants (87.9%) were part of the young Generation Z cohort, while a smaller portion (12.1%) was part of the older Generation Z group. These figures are disproportionate, as data collection took place on a university campus, where 60% of the students were registered for undergraduate studies (University of the Witwatersrand, 2024a). Additionally, of the first-year cohort (the biggest undergraduate group), 99% were 22 years old or younger (University of the Witwatersrand, 2024b). From a gender perspective, the majority of respondents were female (82.2%), while 16.4% identified as male, and the remaining 1.4% did not wish to disclose their gender. Additionally, as the study is based on retail purchases, the researchers sought to understand the income levels of respondents. The bulk of the participants (43.7%) indicated that their household income levels were less than R10 000. Additionally, 7.0% of the participants answered that their household income levels were between R10 001 and R20 000, 7.0% were between R20 001 and R30 000, 3.5% were between R30 001 and R40 000, and 18.6% indicated that their household income was R 40 001 and above. A substantial number of respondents (20.2%) were not willing to disclose their household income levels. Investigating the impact of environmental factors on the intention to adopt online fashion rental services … 248 5.2 FACTOR OUTER LOADINGS Within this study, the outer loadings (shown in Table 2), Composite Reliability (CR) values, and the Average Variance Extracted (AVE), were used to assess convergent validity. The outer loadings in this study were all above the recommended threshold (Hair et al., 2022). TABLE 2: FACTOR OUTER LOADINGS Item Factor Outer Loadings ATT1 Attitude 0,854 ATT2  Attitude 0,852 ATT3  Attitude 0,832 ATT4  Attitude 0,857 ATT5 Attitude 0,766 ATT6  Attitude 0,747 CK1  Consumer knowledge 0,858 CK2  Consumer knowledge 0,772 CK3  Consumer knowledge 0,888 CK4  Consumer knowledge 0,781 EA1  Environmental awareness 0,755 EA2  Environmental awareness 0,865 EA3  Environmental awareness 0,887 EA4  Environmental awareness 0,867 INT1  Behavioural intentions 0,910 INT2  Behavioural intentions 0,888 INT3  Behavioural intentions 0,892 PEB1  Past environmental behaviour 0,583 PEB2  Past environmental behaviour 0,519 PEB3  Past environmental behaviour 0,798 PEB4  Past environmental behaviour 0,591 PI1  Personal innovativeness 0,703 PI2  Personal innovativeness 0,792 PI3  Personal innovativeness 0,766 PI4  Personal innovativeness 0,804 PI5  Personal innovativeness 0,809 5.3 RELIABILITY AND VALIDITY While a Cronbach’s alpha value of 0.7 is regularly regarded as the threshold (Hair et al., 2022), Taber (2018) confirms that several scientific studies describe an alpha value of 0,45 and above as either acceptable or sufficient. This narrative is also supported by Trizano-Hermosilla and Alvarado (2016) who indicate that values above 0.5 are acceptable. Based on this, all constructs within this study reported acceptable Cronbach’s alpha values. Similar to Cronbach’s alpha, generally composite reliability values above 0.7 are considered satisfactory, providing empirical evidence that the measurement scales within the study are reliable (Malhotra et al., 2017). The CR values in this study ranged from 0.721 to 0.925. 249 The Retail and Marketing Review: Vol21 Issue 2 (2025) ISSN:2708-3209 In a further attempt to assess convergent validity, the average variance extracted values were analysed. An AVE value of 0.4 is considered acceptable, provided the CR value is above 0.6 (Fornell & Larcker, 1981; Lam, 2012). As can be seen in Table 2, convergent validity was attained. TABLE 3: MEASUREMENT STATISTICS OF CONSTRUCTS Construct Cronbach's Alpha Composite Reliability (CR) Average Variance Extracted (AVE) ATT 0.901 0.924 0.671 CK 0.843 0.895 0.683 EA 0.865 0.909 0.714 INT 0.878 0.925 0.804 PEB 0.531 0.721 0.399 PI 0.834 0.883 0.602 5.4 DISCRIMINANT VALIDITY Two well-known tests are used to determine discriminant validity, namely, the Fornell-Larcker test and the Heterotrait-Monotrait (HTMT) ratio of correlations (Hair et al., 2022). The results of both these tests are indicated in Tables 4 and 5. The HTMT results are in Table 4 and indicate that all values were below 0.9. This confirms the presence of discriminant validity. TABLE 4: HETEROTRAIT-MONOTRAIT RATIO (HTMT) – MATRIX ATT CK EA INT PEB PI PI x ATT ATT CK 0.380 EA 0.539 0.080 INT 0.685 0.536 0.273 PEB 0.280 0.289 0.287 0.278 PI 0.422 0.320 0.213 0.388 0.537 PI x ATT 0.064 0.048 0.187 0.129 0.030 0.083 Source: Authors’ construction (2025) based on PLS-SEM TABLE 5: FORNELL-LARCKER CRITERION ATT CK EA INT PEB PI ATT 0.819 CK 0.334 0.826 EA 0.481 0.052 0.845 INT 0.611 0.462 0.241 0.896 PEB 0.221 0.185 0.178 0.211 0.632 PI 0.363 0.273 0.179 0.335 0.385 0.776 Source: Authors’ own construction (2025) based on PLS-SEM The findings presented in Table 5 show the outcomes of the Fornell-Larcker criterion, indicating that the square root of the AVE values exceeded those of other elements within their respective rows and columns, thus confirming discriminant validity. Investigating the impact of environmental factors on the intention to adopt online fashion rental services … 250 Based on the convergent and discriminant validity results presented in the sections above, the measurement model in this study was considered to be valid and reliable. TABLE 6: R-SQUARE R-square R-square adjusted ATTITUDE 0.334 0.329 BEHAVIOURAL INTENTIONS 0.396 0.391 Source: Authors’ own construction (2025) based on PLS-SEM The R2 values measure the variance that is explained in each of the endogenous variables and are, therefore, a measure of the model’s explanatory power. R2 values range from 0 to 1, with higher values indicating greater explanatory power. Hair et al. (2022) conclude that R2 values above 0.1 are considered satisfactory. With respect to hypothesis testing, Duh and Pwaka (2023) confer that t-values of 2.54 (p ≤ 0.01), 1.96 (p ≤ 0.05), and 1.65 (p ≤ 0.09) are significant at the 99%, 95%, and 90% confidence intervals, respectively. Thus, a t-value greater than 1.65 can imply that the hypothesis is supported. TABLE 7: HYPOTHESES RESULTS Original sample (O) Sample mean (M) Standard deviation (STDEV) T statistics (|O/STDEV|) P values Decision H1 PEB -> ATT 0.086 0.102 0.046 1.868 0.062 Supported H2 EA -> ATT 0.451 0.450 0.048 9.345 0.000 Supported H3 CK -> ATT 0.295 0.294 0.045 6.523 0.000 Supported H4 ATT -> INT 0.556 0.556 0.043 12.995 0.000 Supported H5 PI x ATT -> INT 0.079 0.077 0.041 1.937 0.053 Supported Source: Authors’ own construction (2025) based on PLS-SEM 6. DISCUSSION The findings illustrated in Table 7 indicate that past environmental behaviour has a significant influence on attitude towards online fashion rental services (β = 0.086, p = 0.062), thus H1 was supported in this study. Environmental awareness also has a positive and significant influence on attitudes towards online fashion rental services (β = 0.451, p = 0.000), which provides empirical evidence supporting H2. Consumer knowledge has a positive and significant impact on attitudes towards online fashion rental services (β = 0.295, p = 0.000), indicating that H3 was supported within this study. Attitudes towards online fashion rental services also exerted a positive influence on behavioural intentions (β = 0.556, p = 0.000), supporting H4. H5 sought to discover whether personal innovativeness acts as a moderator between attitude and behavioural intentions. With β = 0.079 and p = 0.053, empirical evidence was provided to support this hypothesis at the 90% confidence level. The results of PLS-SEM are presented in Table 7. 6.1 THEORETICAL AND MANAGERIAL IMPLICATIONS Theoretical Implications The study was built upon the TPB by adding new constructs such as past environmental behaviour, environmental awareness, and consumer knowledge. These additional constructs extend the explanatory power of the TPB in predicting Generation Z’s behavioural intentions to adopt sustainable fashion consumption practices, thus contributing