The Effect of Consumer Perceptions of Corporate ESG Activities on Their Brand Attitudes: F ocusing on t he I nteraction E ffects of T ypes o f Products

Purpose: Drawing upon the recent findings and theories in ESG research, this study intends to test the effects of corporate ESG activities focusing on the differential effects by 6 types of products. Specifically, the causal relationship between consumers’ perception of the three dimensions for ESG activities(environmental, social and governance) and brand attitude was examined. In addition, this study helps elaborate the differential effects of corporate ESG initiatives based on their product types. Research design, data, and methodology: Measurement items were measured using a Likert-type 5-point scale based on previous studies. An online survey was conducted via an expert research company and total 310 samples were used for the final analysis. Reliability test and confirmatory factor analysis were performed for research validity and reliability. Researchers also hypothesized that product types would play a moderating role in the relationship between ESG activities and brand attitude. Results: The results show that all the three dimensions of corporate ESG activities have positive effects on brand attitude. Additionally, the relationship between ESG activities and brand attitude differed whether the products are luxury or general goods, utilitarian or hedonic one, and low-involvement or high-involvement product. The effects of Environmental and Social were greater in case of luxury goods than in general goods, but utilitarian and hedonic products have no difference in the influence of ESG activities. On the one hand, the effect of Environmental was greater for low-involvement products, but the effects of Social and Governance were relatively greater for high-involvement products. Implications: These findings have theoretical significance in that this study has verified the effects of ESG activities by expanding the research area of ESG activities to the field of marketing, which had been mainly conducted from the investor's point of view. And it can also contribute to raising the understanding of consumers' information processing mechanisms for ESG activities. In addition, it will be able to provide useful implications in establishing effective ESG management strategies from the perspective of practitioners.