Impact of sports brands’ activities: Are consumers willing to pay a price premium?

Abstract

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.