How and when perceived social sustainability of brands increases consumers' willingness to pay a premium: A...

The purpose of this study is to explore the mechanism by which the perceived social sustainability of brands influences consumers' willingness to pay a premium through brand image. Additionally, environmental concern is examined as a moderator in this mediating relationship. Two survey studies were conducted to examine the theoretical effects in two different contexts: the first study focused on general brands, and the second study focused on fashion brands. The first study collected data from 335 respondents in Malaysia, whereas the second study gathered data from 183 respondents in the US through Prolific. The data were analyzed using partial least squares structural equation modeling (PLS-SEM). Results obtained from two studies report the same results. It is found that perceived social sustainability of brands positively affects both willingness to pay a premium and brand image. Additionally, brand image positively influences willingness to pay a premium. It is also found that brand image mediates the relationship between perceived social sustainability of brands and willingness to pay a premium. Moreover, environmental concern moderates the relationship between perceived social sustainability of brands and brand image. Furthermore, environmental concern also moderates the mediating relationship between perceived social sustainability of brands and willingness to pay a premium through brand image. Understanding the impact of sustainability in business has been a central focus for many scholars. However, few studies have examined the consequences of the social aspects of sustainability. This study uniquely assesses the influence of perceived social sustainability of brands on consumers' willingness to pay a premium. Additionally, mediating and moderating mechanisms are proposed and analyzed.