Does Perceived Sustainability Affect the Customer Responses toward the Brands? Role of Customer Engagement as a Mediator

Abstract

The notion of sustainability has received increased attention among marketers, and in theory. Though studies have discussed the crucial role of sustainable practices in shaping consumer responses, the role that perceived sustainability plays in engaging customers, and its effect on customer responses has received less attention. The study aims to determine the effect of perceived sustainability on customer loyalty and trust through the mediation of customer engagement. 330 responses were collected to test the proposed model. Structural equation modeling was used to test the hypothesis. The main findings of the study revealed a significant and positive effect of perceived sustainability on customer loyalty and trust. Further, we found that customer engagement acts as mediator between perceived sustainability and trust association. However, the results indicate that customer engagement does not mediate the link between perceived sustainability and loyalty. Extending sustainability and customer engagement literature, the study presents empirical evidence towards the direct effect of perceived sustainability on customer loyalty and trust as well as the indirect effect on trust via customer engagement. The study suggests practitioners develop a strategy that could incorporate sustainability initiatives in marketing programs because these initiatives may engage customers and affect their responses (i.e., loyalty and trust).