Evaluating the Impact of Sustainability Practices on Customer Relationship Quality: An SEM-PLS Approach to Align with SDG

Abstract

The present research explores how sustainability practices affect customer relationship quality in retail stores. The study explores factors like sustainable product recommendations, smart energy efficiency displays, green certification, and eco-friendly packaging and their effect on customer engagement, customer perception, and loyalty. Using a cross-sectional approach, data was collected from 745 retail customers through structured surveys to understand their views on sustainability initiatives and their behavior patterns. The study employs Structural Equation Modelling-Partial Least Squares (SEM-PLS) using SMART PLS4 for data analysis laying the foundation of the study on Expectation-Confirmation Theory (ECT). The findings reveal that sustainable retail practices enhance customer interactions and highlight the importance of consumer perceptions in evaluating the effectiveness of these initiatives making it significant to improve customer relationship quality, leading to better business performance and increased loyalty. The significance of the study extends to its contribution to the United Nations Sustainable Development Goals (SDGs) by promoting responsible consumption and production (SDG12), partnerships for the Goals SDG 17, and industry, Innovation, and Infrastructure (SDG9). The conceptual framework built on ECT and architected by SEM-PLS aligns with SDG making the study highly relevant and novellas it integrates advanced sustainability practices with customer relationship quality, addressing a critical gap in the existing literature.