Integrating Sustainability and Circular Economy into Consumer-Brand Dynamics: A Saudi Arabia Perspective

Abstract

This study examines the evolving consumer-brand dynamics within Saudi Arabia, particularly focusing on the integration of sustainability into consumer preferences and brand loyalty. Utilizing Partial Least Squares Structural Equation Modeling (PLS-SEM) and non-parametric statistical methods, this research is anchored in Consumer Culture Theory (CCT) and Self-Congruence Theory, exploring how brand personality and consumer self-congruence influence sustainable consumption behaviors and the adoption of circular economy practices among Saudi consumers. The findings reveal a significant correlation between brand loyalty and sustainable purchase decisions, underscoring the pivotal role of brand identity in fostering eco-conscious consumer choices. Additionally, the research highlights a nuanced landscape of brand loyalty, where attributes, such as social responsibility, though currently less influential, present opportunities for brands to align more closely with consumer values and national sustainability goals. The study also identifies demographic factors, such as age and income level, as significant influencers of sustainable purchasing decisions. This study provides insights into the generational shift towards environmental awareness and the implications for businesses and policymaking within the context of Saudi Arabia’s Vision 2030.