Perceived ESG (Environmental, Social, Governance) and Consumers' Responses: The Mediating Role of Brand Credibility, Brand Image, and Perceived Quality

This paper explores whether consumers' perceptions of environmental, social and governance initiatives can impact on attitude, and how three brand-related constructs-brand credibility, brand image and perceived quality-mediate this relationship. An online survey was conducted with 458 South Korean consumers, and the data were investigated through a partial least squares structural equation modeling (PLS-SEM) technique. The empirical results indicated direct positive effects of social and governance dimensions of perceived ESG on brand credibility, brand image, and perceived quality. However, no direct impact of the environmental dimension of perceived ESG on brand-related constructs was identified. Further, the results confirmed that brand credibility, brand image and perceived quality partially mediate the relationship between perceived ESG and attitude. Based on the findings, this paper suggests implications and future research directions.

Automated summary

This paper investigates the impact of consumers' perceptions of environmental, social, and governance initiatives on attitude, and the mediating role of brand credibility, brand image, and perceived quality. An online survey with 458 South Korean consumers was conducted and data were analyzed using the PLS-SEM technique. The results indicate that the social and governance dimensions of perceived ESG have a direct positive effect on brand credibility, brand image, and perceived quality. However, the environmental dimension of perceived ESG does not have a direct impact on brand-related constructs. Additionally, brand credibility, brand image, and perceived quality partially mediate the relationship between perceived ESG and attitude. The findings provide implications and future research directions.