Influence of environmental, social and governance (ESG) disclosures on consumer brand perceptions and behavioral intentions

Abstract

Purpose

This study investigates how consumers’ perceptions of brand prominence and credibility are influenced by companies’ disclosure of transparency and quality of environmental, social and governance (ESG) information. It also examines how regulatory focus influences the relationship between purchase intention and brand credibility.

Design/methodology/approach

The study employs a quantitative approach, utilizing an online survey of 464 Taiwanese consumers. The data collected is analyzed using structural equation modeling (SEM) to evaluate the direct and indirect effects of perceived ESG information transparency and quality on brand prominence, brand credibility and purchase intentions.

Findings

The findings reveal that perceived transparency and quality of ESG information significantly enhance brand credibility and prominence. Consequently, increased brand credibility and prominence have a significant positive impact on consumer purchase intentions. Additionally, the study identifies a moderation effect, wherein a prevention regulatory focus strengthens the influence of brand credibility on purchase intentions.

Originality/value

This study contributes to the literature on brand management and consumer behavior by integrating regulatory focus theory with the impacts of ESG information. It provides new insights into how ESG-related communications influence consumer behavior, highlighting the importance of transparent and high-quality ESG data in fostering consumer trust and positive brand evaluations.

Citation

Cheng, L.K. and Huang, H.-L. (2024), "Influence of environmental, social and governance (ESG) disclosures on consumer brand perceptions and behavioral intentions", Asia Pacific Journal of Marketing and Logistics, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/APJML-06-2024-0727