Purpose — Drawing from sustainability development theory and signalling theory, this study investigates how customer perceptions of brand sustainability impact green brand equity in the
Introduction
Research Motivation
The fashion industry's rapid expansion significantly impacts society, the economy, and the environment, consuming 79 trillion liters of water and generating over 92 million tons of solid waste each year (Chen et al., 2021) According to UN Climate Change (2018), it contributes about 20% of global wastewater and 10% of CO2 emissions If these trends persist, greenhouse gas emissions from the industry could rise by over 50% by 2030 (World Bank).
In recent years, consumers have become increasingly aware of environmental issues, significantly influencing their purchasing decisions based on the sustainable practices of companies (Hume, 2010) This heightened awareness highlights the importance of brand equity in the context of sustainability, paving the way for research into green brand equity However, there remains a gap in understanding the factors that contribute to green brand equity through the lens of sustainable development.
Research Gaps
Recent studies have explored the complex relationship between green brand equity and various green practices, highlighting the importance of sustainability development While much research has focused on the effects of green marketing practices—such as green image, trust, loyalty, perceived value, and satisfaction—on green brand equity, there is a lack of in-depth analysis of sustainability development theory, which encompasses economic, environmental, and social dimensions essential for creating a sustainable brand Many studies have only examined environmental practices, neglecting the need for a comprehensive approach that addresses all three aspects of the triple bottom line Additionally, the interaction between green brand equity and purchase intention has been documented, yet the emergence of social media and influencer marketing has shifted the focus toward brand evangelism, which involves active support beyond mere purchase intentions However, research on the behavioral aspects of brand evangelism in relation to green brand equity remains limited.
Research Objectives
This study aims to explore the impact of customer perceptions of brand sustainability on green brand equity within the fashion industry and how this equity influences consumer evangelism By independently examining the three dimensions of sustainability—economic, environmental, and social—this research seeks to uncover their specific effects on green brand equity, addressing critical gaps in existing literature (Hussain et al.).
This research, one of the first to investigate the dynamic relationships among three sustainability dimensions and green brand equity, provides a comprehensive understanding of this topic By distinguishing the unique impacts of each sustainability dimension on green brand equity, it reveals the intricate interconnections and combined effects of these factors As customers engage in the identification process, their relationship with the brand is strengthened, leading to positive evangelistic behavior.
Research Method
This study utilizes a quantitative methodology, employing a structured survey based on prior research dimensions and a 7-point Likert scale, alongside a convenience sampling technique The data collected will be analyzed using Partial Least Squares (PLS) for structural equation modeling, as well as SPSS for descriptive and inferential statistics This approach facilitates the examination of relationships between variables in our proposed model, enhancing our understanding of the complex interconnections related to green brand equity.
Research Contribution
This study explores green brand evangelism by analyzing customer perceptions of brand sustainability and its influence on green brand equity It investigates green brand equity through three sustainability perspectives and applies sustainability development theory Additionally, the research enhances understanding of consumer-brand relationships by examining how green brand equity fosters evangelistic behavior, promoting brand evangelism It emphasizes the role of green brand transparency in building brand equity, supported by signaling theory, which can enhance consumers' purchase intentions and benefit businesses Finally, the study recommends that marketers consider the significant role of pricing for customers in Vietnam, noting that Generation Z shows a stronger preference for sustainability compared to older generations.
Theoretical foundation 5 1 Green Brand Equity
Sustainability Development Theory
Sustainable development, as outlined by Brundtland (1987), is an integrated approach to resource management that seeks to meet the present needs of stakeholders while ensuring that future generations can also fulfill their own needs This concept encompasses a balance of social, economic, and environmental factors (Hussain et al., 2018).
Our research in the fashion industry explores how customer perceptions of brand sustainability influence green brand equity, grounded in Sustainable Development theory A truly sustainable brand integrates the three dimensions of sustainability—environmental, social, and economic—into its operations, as outlined by the Triple Bottom Line (TBL) framework While many companies prioritize environmental practices, a comprehensive approach that encompasses all TBL aspects is essential for genuine sustainability This framework serves as a valuable tool for assessing and enhancing sustainability in business practices.
Social Responsibility involves organisations’ engagement in Corporate Social
Companies are increasingly focusing on Corporate Social Responsibility (CSR) to improve their social image, which encompasses promoting racial equality, fostering connections with consumers, integrating into communities, enhancing quality of life, and ensuring proper governmental arrangements.
Economic Responsibility refers to the costs associated with production and manufacturing at the plant (Cruz & Wakolbinger, 2008) Companies leverage green branding to attract consumer support while simultaneously lowering costs, ultimately making their products more affordable for consumers (Sharma & Joshi, 2019).
Environmental Responsibility concerns energy use, waste reduction, pollution reduction, emissions reduction, recycling, and reuse (Berkhout & Hertin, 2001; Gimenez et al., 2012).
Utilizing the Sustainable Development theory and its Triple Bottom Line (TBL) approach, this study explores the influence of customer perceptions of brand sustainability on green brand equity within the fashion industry This theoretical framework underpins our analysis and enhances the interpretation of our research findings.
2.3 Signa I ling Theory and Green Brand Transparency
Signalling theory, introduced by Spence in 1973, explains how individuals or organizations use observable signals to convey quality in situations where direct observation is not possible This theory is valuable for understanding the behaviors of senders, who decide how to transmit information, and receivers, who interpret these signals Research by Connelly et al (2011) highlights the importance of these interactions in facilitating market dynamics, emphasizing the role of information asymmetry in decision-making processes.
Research highlights the significance of signalling theory in understanding the information gaps between companies and consumers (Erdem & Swait, 2004) This theory suggests that when ethical claims are made, brands, as insiders, hold insights into their ethical practices and intentions that consumers, as outsiders, lack access to (Connelly et al.).
To address information imbalances, customers rely on signals to form their brand perceptions (Erdem & Swait, 2001; Spence, 1973) These signals serve as external indicators that help insiders communicate quality improvements to outsiders (Connelly et al., 2011) Additionally, consumers' interpretations of these signals reflect the signaling value linked to brand actions (Cambier & Poncin, 2020).
In marketing, effective messages are those perceived as credible and relevant by consumers, highlighting the connection between brand transparency and signaling theory (Chopdar & Paul, 2023) Research indicates that transparency acts as a strong indicator of a brand's trustworthiness, enhancing signaling theory by providing consumers with a reliable signal for assessing brand quality (Cambier & Poncin, 2020) Furthermore, Liu et al (2015) demonstrate that the influence of performance transparency relies on customers' perceptions of a company's ability to meet service commitments, aligning with signaling theory Additionally, Sansome et al (2024) emphasize that perceived brand transparency—characterized by proactive, objective, and clear information—enables consumers to differentiate between brands that exhibit ethical behavior and those that do not.
Brand Evangelism has emerged as a crucial concept in consumer-brand relationships, defined as the active support for a brand through purchasing, positive referrals, and disparaging competitors (P Becerra & Badrinarayanan, 2013) This concept highlights how consumer-brand relationships foster brand-related behaviors, including consumer-to-consumer communication (McAlexander et al., 2002; Pimentel & Reynolds, 2004) Stronger forms of referrals, such as positive word-of-mouth and brand advocacy, have been linked to these relationships (Badrinarayanan & Lavric, 2011; Kemp et al., 2012) In today’s hyper-connected marketplace, modern firms are increasingly targeting brand evangelists—small yet highly influential groups of consumers who actively promote their preferred brands and inspire others to follow suit.
This study employed the behavioral model by Becerra and Badrinarayanan (2013) to identify three key brand-related behaviors that characterize brand evangelism: purchasing intentions, positive brand referrals, and oppositional brand referrals Positive brand referrals reflect a willingness to purchase products from the brand, while oppositional brand referrals signify a tendency to voice negative opinions about rival brands.
Green Brand Evangelism
Brand Evangelism has emerged as a crucial concept in consumer-brand relationships, defined as the active support for a brand through actions like purchasing, sharing positive referrals, and persuading others while criticizing competitors (P Becerra & Badrinarayanan, 2013) It is widely recognized that these relationships foster brand-related behaviors, particularly consumer-to-consumer communication (McAlexander et al., 2002; Pimentel & Reynolds, 2004) Stronger forms of referrals, such as positive word-of-mouth and brand advocacy, have been linked to these relationships (Badrinarayanan & Lavric, 2011; Kemp et al., 2012) In today's hyper-connected marketplace, businesses are increasingly targeting brand evangelists— a small yet highly influential group of consumers who promote their favorite brands and inspire others to do the same.
This study employed the behavioral model by Becerra and Badrinarayanan (2013) to identify three key behaviors that characterize brand evangelism: purchasing intentions, positive brand referrals, and oppositional brand referrals Positive brand referrals reflect a willingness to purchase products from the brand, while oppositional brand referrals indicate a tendency to voice negative opinions about rival brands.
Hypothesis development
Brand Sustainability & Green Brand Equity
3.1.1 Perceived CSR to society and Green Brand Equity
This paper explores the impact of perceived Corporate Social Responsibility (CSR) on society within the framework of Sustainable Development theory According to Turker (2009), CSR activities that enhance societal well-being can foster a more favorable perception of companies, as noted by Murray & Vogel (1997) Additionally, Vassileva (2009) emphasizes that effective CSR efforts contribute to corporate branding, underscoring their importance for long-term organizational success Lai et al (2010) further assert that customer responses to CSR initiatives significantly influence an organization's green brand equity Consequently, Ahmad et al (2019) conclude that CSR related to social dimensions positively affects customer-based brand equity Building on these insights, we propose a hypothesis linking perceived CSR to society with green brand equity.
HI Perceived CSR to society has a positive impact on green brand equity.
3.1.2 Perceived Eco-friendliness and Green Brand Equity
Measuring consumer perception of brand eco-friendliness is crucial for assessing the effectiveness of sustainable development and marketing initiatives (Saari, Baumgartner, & Makinen, 2017) Brand eco-friendliness reflects customers' views on a brand's commitment to environmental issues (Patterson & Spreng, 1997; Chen & Chang, 2012; Punyatoya, 2014) A strong eco-friendly perception leads customers to associate the brand with a green image (Punyatoya, 2014), enhancing trust in eco-friendly products (Chen & Chang, 2012) By fostering an eco-friendly brand image, companies can position themselves as environmentally responsible and potentially boost their green brand equity (Punyatoya, 2014).
H2 Perceived eco-friendliness has a positive impact on green brand equity.
3.1.3 Perceived Price Fairness and Green Brand Equity
Price is crucial for sustainable development, striking a balance between customer sacrifice and seller value (Filip, Catoiu, & Vranceanu, 2010) Previous studies have explored price fairness (Goodwin & Ross, 1992; Van Den Bos et al., 1998; Xia et al., 2004; Diller, 2008), with equity theory (Adams, 1965) offering key insights into consumer perceptions of fairness Fairness is assessed by comparing inputs and outputs against a relevant standard (Kahneman et al., 1986; Xia et al., 2004) Price fairness significantly influences customer satisfaction and a firm's reputation (Filip, Catoiu, & Vranceanu, 2010) Empirical evidence indicates a positive link between perceived product quality and fair pricing (Oh, 2000), suggesting that enhanced perceptions of pricing justice can elevate brand quality perceptions for green products, thereby linking to green brand equity.
H3 Perceived price fairness has a positive impact on green brand equity.
Green Brand Equity and Green Brand Evangelism
Research indicates that Green Brand Equity (GBE) significantly impacts consumer behavior and intentions, as highlighted by Rambocas & Ramsubhag (2018) and Bckk et al (2016) Mchdikhani & Valmohammadi (2021) further established GBE as an effective green signal that enhances brand perception, making it a vital factor in driving Green Word of Mouth (GWOM) Additionally, positive brand equity, which encompasses improved brand identity and image, is shown to influence future consumer behaviors, particularly in the sports sector, where athletes' brand equity positively affects fans' WOM intentions (Park et al.).
Research from 2019 highlights that consumers tend to show positive behaviors towards brands with significant equity, suggesting a psychological bond between the consumer and the brand This connection supports favorable customer intentions and reinforces the relationship with brand equity Specifically, individuals who recognize high brand equity are more likely to engage in positive word-of-mouth (WOM) behaviors, as noted by Rambocas, Kirpalani, & Simms (2018).
H4 Green brand equity has a positive impact on positive referrals.
H5 Green brand equity has a positive impact on oppositional referrals.
H6 Green brand equity has a positive impact on purchase intention.
Moderating role of Brand Transparency
Brand transparency has gained significant attention in the media and business sectors due to prevailing societal and economic conditions (Yang & Battocchio, 2020) It is defined as the subjective perception of being informed (Eggert & Helm, 2003) and is recognized for its potential to yield positive outcomes for brands (Lin et al., 2017; Yang & Battocchio, 2021) Research by Sansome et al (2024) indicates that perceptions of brand transparency are likely to emerge when brands demonstrate trustworthiness and responsibility (Kang & Hustvedt, 2014), clearly articulate their intentions, and communicate in an unbiased manner (Liu et al.).
Brand transparency is a proactive and deliberate approach to communicating a company's activities, emphasizing clarity and understandability of information Research has identified five essential themes for conceptualizing brand transparency: clarity, proactivity, objectivity, perceived accessibility, and information awareness Ultimately, it is defined as consumers' subjective assessment of the clarity, objectivity, and proactivity of the information available to them.
Transparent communication about ethical labor practices, sustainable manufacturing, and social responsibility initiatives significantly impacts consumers' purchasing intentions and their likelihood of sharing positive feedback about a brand.
When consumers acknowledge a brand's commitment to social and environmental initiatives, they tend to cultivate a stronger appreciation for the brand This recognition fosters increased trust, positive attitudes, and a greater likelihood of supporting the brand in the future.
The relationship between consumers and businesses is shaped by both the transparency of a company's actions and consumers' perceptions of those actions, particularly in less transparent situations Therefore, we suggest that green brand transparency acts as a moderator between brand sustainability and green brand equity.
H7 Green brand transparency moderates the relationship between perceived
CSR to society and green brand equity.
H8 Green brand transparency moderates the relationship between perceived
Eco-friendliness and green brand equity.
H9 Green brand transparency moderates the relationship between perceived price fairness and green brand equity.
Based on the presented hypotheses and the extant literature the research model is
Method
Procedures
A quantitative research study was conducted using an online survey to validate the proposed research framework Participants, aged 18 and older, were informed about the study's purpose and provided their consent before participating The survey comprised two sections: the first focused on demographic questions, while the second invited participants to share their experiences, opinions, and ratings regarding sustainability initiatives implemented by the brand, supported by visual aids and examples.
We conducted a survey with 437 participants using a convenience sampling method for its practicality After removing ineligible responses, we finalized 403 valid submissions, which were then analyzed for further insights.
Measurement of variables
The research variables were adapted from previous studies to align with the specific context of this research A 7-point Likert scale, ranging from (1) strongly disagree to (7) strongly agree, was used to evaluate the questionnaire items Detailed information on the variables and their respective measurement items is presented in Table 2.
Sample characteristics
Our research focuses on the green brand within the fashion industry, revealing that a significant majority of respondents (73.9%) have previously purchased green fashion products The demographic profile indicates that most participants are aged 18 to 27 years (69.2%), with a slight female majority (54.1%) The majority of respondents are students (56.3%), followed by employed individuals (32%), while the sample is highly educated, with 92.1% holding a Bachelor's degree Income levels vary, with 43.9% earning under 5 million VND When considering the importance of green factors in fashion purchases, 54.3% of respondents view it as somewhat important, and 29.8% regard it as very important.
In conclusion, our sample characteristics suggest a young, educated demographic with a substantial interest in green fashion products.
From 5 million VND to 10 million VND 75 18.6
Above 10 million VND to 15 million VND 52 12.9
Above 15 million VND to 20 million VND 48 11.9
Data analysis and results
Common method bias
In our research, we employed two approaches to evaluate the potential occurrence of Common Method Bias (CMB) We first conducted Harman’s single factor test, which indicated that 43.422% of the total variance was accounted for, suggesting a low likelihood of CMB since this percentage is below the 50% threshold established by Podsakoff and Organ.
We performed a collinearity test based on the criteria set by Hair et al (2019), which states that a Variance Inflation Factor (VIF) of 3 or lower indicates no common method bias (CMB) Our results showed that all VIF values for the latent constructs ranged from 1.00 to 2.307, indicating minimal multicollinearity and a low probability of CMB.
S D : Standard d ev ia ti o n , C R : C o m p o si te re li a b il it y S o u rc e: R es ea rc h group's w o rk
Assessment of Structural Model
The goodness-of-fit of the structural model was assessed using R-square values, which indicate the extent to which variation in each endogenous variable can be explained by the model, reflecting its explanatory power (Shmueli & Koppius, 2011) R-values are categorized as substantial (0.75), moderate (0.50), and weak (0.25) (Hcnsclcr et al., 2009; Hair et al., 2011) Additionally, a Q-squared value greater than 0 suggests predictive relevance for the model.
The Q² value serves as an indicator of predictive relevance, demonstrating the predictive power of endogenous constructs According to Hair et al (2013), values of 0.02, 0.15, and 0.35 signify weak, moderate, and strong predictive importance, respectively Utilizing blindfolding with an omission distance of seven results in Q² values exceeding zero, which reinforces the model's capability for out-of-sample prediction relevance (Hair et al., 2013).
The analysis of green brand equity revealed a significant R-squared value of 0.38, indicating that exogenous variables accounted for 38% of its variability Additionally, the model's predictive relevance was confirmed with a Q2predict value of 0.349 for green brand equity, signifying a large effect size In contrast, the R-squared values for oppositional referrals, positive referrals, and purchase intention were moderate at 0.11, 0.224, and 0.225, respectively, explaining 11%, 22.4%, and 22.5% of the variation in these constructs The corresponding Q2predict values of 0.127, 0.307, and 0.29 for oppositional referrals, positive referrals, and purchase intention indicated medium effect sizes Overall, the structural model effectively explains the variation in endogenous latent constructs and provides valuable insights into the relationships among sustainability development, green brand transparency, and consumer behavior within the green fashion industry.
Table 5 Results of endogenous latent constructs
Notes: The value of the effect size = 0.02 small; = 0.15 medium; = 0.35 Large “
Structural Model Results
Table 6 shows that only 5 out of 9 proposed hypotheses were confirmed The results are presented in the model in Figure 2.
Hypotheses Direction of paths Path coefficient p values Results
Hl cs^ GBE 0.028 0.636 Not Supported
H8 GBT X EF ->GBE 0.069 0.344 Not Supported
H9 GBT X PF — GBE 0.03 0.660 Not Supported
The hypothesis testing results provided valuable insights into the relationships between key variables in sustainable fashion branding Notably, the anticipated direct effect (H1) suggesting that perceived corporate social responsibility (CSR) influences green brand equity was not statistically significant (P = 0.028).
The study found that perceived eco-friendliness did not significantly influence green brand equity (p = 0.137, p = 0.064), leading to the rejection of hypothesis H2 However, perceived price fairness was identified as a strong predictor of green brand equity, demonstrating a significant positive effect (H3; p = 0.271, p = 0.000).
The analysis revealed that green brand equity significantly influences customer behavioral evangelism across three dimensions Notably, it has a strong positive impact on both positive referrals (H4; p = 0.474, p = 0.000) and oppositional referrals (H5; p = 0.331, p = 0.000) Additionally, a highly significant association was found between green brand equity and purchase intention (H6; p = 0.494, p = 0.000), underscoring the critical role of environmentally friendly brand perceptions in driving customers' purchasing decisions.
The study explored the mediating role of green brand transparency, revealing a significant interaction between transparency and perceived corporate social responsibility (CSR) towards society, which positively influences green brand equity (P = 0.095, p = 0.047), thus supporting hypothesis H7 In contrast, the interactions with perceived eco-friendliness (H8; p = 0.069, p = 0.345) and perceived price fairness (H9; p = 0.030, p = 0.659) were not statistically significant.
Figure 2 Research framework and results
Discussion and conclusion
Practical implications
In today's market, consumers increasingly prioritize sustainability and are more inclined to trust and engage with brands that demonstrate transparency (Yang & Battocchio, 2020) This research underscores the significance of transparent brand communication for brand managers and marketing professionals, as it enhances brand equity and encourages brand evangelism, ultimately influencing consumers' purchase intentions and advocacy for the brand.
Marketers need to understand that transparent communication about green brands is essential for fostering customer engagement and meeting consumption goals Furthermore, it is crucial to convince consumers that green brands provide greater benefits and value than other available options (Yang & Battocchio, 2020).
Research indicates that marketers must enhance transparency regarding a company's Corporate Social Responsibility (CSR) activities This aligns with findings that consumer perceptions of a corporation's transparency in production, labor conditions, and community support significantly influence their trust Such transparency can reassure companies contemplating sustainable business practices Therefore, it is essential to communicate these aspects clearly and proactively, enabling customers to access information in an objective manner.
Marketers must understand that Vietnamese customers place a high value on pricing, as perceived price fairness significantly influences green brand equity Consequently, setting excessively high prices for sustainable products is unlikely to yield a positive market response.
When marketing to Millennials and older consumers, it's crucial to recognize that they may prioritize brand choices differently than Generation Z, who are more inclined to emphasize sustainability While Millennials and those above 27 may not focus as heavily on sustainability factors, understanding these distinctions can enhance targeted marketing strategies.
Marketers should prioritize targeting the younger segment of Generation Z, as they demonstrate a greater commitment to sustainability in brands than older generations.
Limitations and future research
The current study presents limitations that highlight opportunities for future research As our research design is cross-sectional, data was gathered from respondents at a single point in time Future studies could benefit from collecting longitudinal data, especially considering the emerging nature of transparency as a field and the evolving socio-economic factors that may influence the variables under investigation.
The perceived Corporate Social Responsibility (CSR) towards society primarily focuses on community contributions and support for non-profit organizations Future studies should explore consumers' attitudes toward broader CSR dimensions, including pro-environmental initiatives across the supply chain, the protection of consumer information and privacy, and labor conditions Analyzing these diverse aspects of social responsibility is crucial for understanding their effects on consumer trust, attitudes, behaviors, and the importance of green brand transparency in enhancing green brand equity.
Furthermore, this study exclusively focuses on the fashion industry Future research may explore other emerging industries that adopt sustainability practices, such as food consumption or utilisation of green vehicles.
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