Unveiling the Power of ESG: How it Shapes Brand Image and Fuels Purchase Intentions - An Empirical Exploration

Abstract

Nowadays, with a widespread increase in awareness of environmental concerns, the ESG concept has been acknowledged as one of the most vital strategic movements for firms. This paper explores the effect of ESG activities on brand image and customers’ purchase intentions. The moderating effects of a range of sociological factors are also investigated. Based on 168 samples of Thai participants, survey research with an online questionnaire tool was employed to collect the data with structural equation modelling (SEM) to test hypotheses and verify the conceptual framework of this study. The results showed that all environmental, social, and governance activities significantly affect brand image and customers’ purchase intentions. For brand image as a consequence of ESG activities, social activities (b = 0.511) play the strongest role, followed by environmental (b = 0.482) and governance (b = 0.434) activities. On the other hand, environmental activities (b = 0.420) of the ESG concept strongly influence customers' purchase intentions, followed by social (b = 0.395) and governance activities (b = 0.309). Additionally, the moderation analysis found that the effects of ESG activities on brand image and purchase intentions vary depending on gender, age, and education level. These findings provide a deeper understanding of the ESG concept for both academics and practitioners. This paper offers implications and recommendations for further research based on the outcomes. Doi: 10.28991/HIJ-2022-03-04-07 Full Text: PDF