Purpose: Existing research on ESG management in the field of large-scale consumer goods distribution has been mainly conducted from the perspective of companies. However, in the field of consumer goods distribution, the need for research based on ESG management recognized by consumers has emerged. Therefore, this study aims to investigate the effect of ESG management activities of large consumer goods retailers perceived by consumers on consumer loyalty.Research design, data, and methodology: Survey was conducted on the consumers of Pang Dong Lai in Henan Province, China, and the average value was used for the study by receiving questionnaires from 400 customers who visited large distribution stores. Finally, the results of a total of 387 samples were used for analysis. Structural Equations Model (SEM) was employed to test the hypothesized model.Results: First, it was found that ESG (environmental, social) management activities had a positive effect on trust. ESG (environmental, social, and governance) management activities were found to have a positive effect on consumer-company identification. Second, it was found that the variables of trust and consumer-company identification have a mediating effect between ESG management activities and customer loyalty. Third, only ESG (social) management activities were found to have a moderating effect on the relationship between ESG management activities and trust.Implications: Large retailers must promote growth with trust and loyalty through ESG management, and they need advertising and promotion strategies that build relationships and share awareness with extending ESG activities to consumers. Government policy must take responsibility for corporate ESG management through qualified support, including ESG information, and expand consumer education and accounts to establish the only possible culture.
Zheng et al. (Tue,) studied this question.
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