Min-Ah Ryu, Han Soo Kim, Weisheng Chiu, Seomgyun Lee
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Impact of sports brands’ activities: Are consumers willing to pay a price premium?
Purpose
The environmental, social and governance (ESG) movement has become a global phenomenon, penetrating even the sports branding industry. Accordingly, this study investigated whether ESG activities can lead to positive attitudes among customers and thereby affect their behavioral intentions.
Design/methodology/approach
We collected data by administering questionnaires to 154 consumers, after which we conducted partial least squares structural equation modeling to test the hypothesized relationships.
Findings
The results indicated that ESG activities favorably influenced brand image and brand loyalty. Brand loyalty was positively associated with the willingness to pay (WTP) for a price premium. The indirect effect of brand loyalty was confirmed in the association between ESG activities and WTP a price premium. ESG activities indirectly affected WTP a price premium via serial mediation through brand image and brand loyalty.
Originality/value
This research extends our understanding of the mechanism behind consumers’ decision-making processes on the basis of ESG activities and their impact on WTP a price premium.