THE IMPACT OF ENVIRONMENTAL SOCIAL AND GOVERNANCE ESG PRACTICES ON CUSTOMER BEHAVIOR TOWARDS THE BRAND IN LIGHT OF DIGITAL TRANSFORMATION PERCEPT

Abstract

This thesis investigates the impact of environmental, social, and governance (ESG) practices on customer behavior toward brands in the context of accelerating digital transformation, with the aim of addressing a critical gap in contemporary marketing and sustainability literature. As organizations increasingly integrate ESG principles into their strategic agendas, understanding how these practices influence customer perceptions, attitudes, and behavioral responses has become essential, particularly in digitally enabled markets where information transparency and stakeholder engagement are significantly enhanced. Drawing on stakeholder theory as the primary theoretical foundation, this research conceptualizes ESG practices as multidimensional constructs encompassing environmental responsibility, social commitment, and governance integrity, and examines their direct and indirect effects on customer behavior toward brands. In addition, the study incorporates brand attitude as a mediating mechanism to explain how ESG initiatives are translated into favorable customer responses, such as positive evaluations, emotional attachment, and supportive behavioral intentions. Digital transformation is further introduced as a moderating variable, recognizing its role in reshaping how ESG-related information is communicated, perceived, and evaluated by customers through digital platforms, data-driven interactions, and technology-enabled transparency. The study adopts a quantitative research approach, utilizing a structured survey instrument developed from well-established measurement scales, and collects primary data from consumers who are actively engaged with brands in digitally mediated environments. The proposed conceptual framework is empirically tested using Partial Least Squares Structural Equation Modeling (PLS-SEM), which is particularly suitable for analyzing complex models involving mediation and moderation effects while emphasizing predictive accuracy.

Keywords: Environmental, Social, and Governance (ESG); Customer Behavior; Brand Attitude; Digital Transformation; Sustainability Practices; Corporate Responsibility; Stakeholder Theory; Brand Perception; Ethical Governance