Sustainability and Branding in Retail: A Model of Chain of Effects

Abstract

The main objective of this study is to analyse the impact of sustainable practices on companies’ corporate reputation and brand image in the retail sector as perceived by consumers. In addition, we evaluate how those practices affect consumers’ perceived satisfaction levels and their predisposition to engage in positive Word of Mouth (WOM). For the purpose of this study, the context of an emerging economy, Peru, is taken as reference. To do this, we propose a structural equation model based on a representative sample of 403 consumers. The data analysis—using the PLS software package—confirms that corporate social responsibility (CSR) positively influences both corporate reputation and brand image. These two factors jointly have an impact on consumers’ perceived satisfaction levels, which in turn help to explain the flow of positive WOM. This work is a pioneering study of the relationship between the aforementioned factors in the context of emerging economies. The final part of the article discusses the main theoretical implications and recommendations for business practice.

Achieving The Goal of Sustainable Brand Management: The Mediating and Complementary Roles of Brand Awareness, Brand Image, And Brand Identity

“…Even consumption trends are in favor of companies adopting sustainable and socially responsible modes. Mainstream research [29] revealed that companies with eco-friendly brands, fair management practices, and support for local preferences, experienced far greater sales than those that did not. To recapitulate the above, the benefits of sustainable brand management, so far, include compliance with the United Nations' SDGs, improving brand equity and corporate image, enhancing customer loyalty, and competitive advantage.…”

The Impact of Social-media Marketing Activities on Consumers’ Loyalty Intentions: The Mediating Roles of Brand Awareness, Consumer Brand Engagement and Brand Image

“…BI refers to the utility or added value that a brand contributes to the product (Flores-Hernández et al, 2020). Armstrong et al (2018) indicated that BI represents what the customer has accumulated in his/her memory about the brand, which is actually what comes to the customer's mind when confronted with the brand.…”

Corporate social responsibility in the retail business: A case study

“…To bridge the gap between the rhetoric and reality, it is critical to align the consumers' perceptions of CSR initiatives with the validity of the physical CSR activities carried on by a business (Flores‐Hernández et al, 2020), especially for those organizations which are closer to the market (Haddock‐Fraser & Fraser, 2008). Appropriate communication and translation of CSR initiatives (Bagnoli et al, 2021; Savory, 2006) look essential to make customers understand the real value of activities affecting social and environmental sustainability.…”

“…Still, the fit between consumers and CSR initiatives (the so‐called consumer‐CSR fit) is critical to ensuring a positive consumer response and engagement to CSR strategies (Moreno & Kang, 2020). Following a similar approach, Flores‐Hernández et al (2020) argue that dedicated CSR policies can boost the brand image, which, as an intangible asset of great value, will reinforce the consumers' decision process and their level of satisfaction regarding the product or service purchased. If companies are capable of generating this virtuous cycle, they can expect positive, non‐transactional behaviours of great value (Gilal et al, 2020).…”