From Sustainability Signals to Behavioural Loyalty: The Mediating Role of Brand Trust and the Moderating Role of Price Sensitivity in Emerging Markets

Abstract

The adoption of sustainable branding as a differentiation strategy is growing. In emerging economies with significant price sensitivity, there is little empirical data to support the idea that sustainability signals result in genuine behavioral loyalty. Previous research has mostly ignored the processes that motivate recurrent purchases and resistance to brand switching in favor of attitudinal outcomes like brand image and buy intention. This study, which is based on social identity theory and signaling theory, looks at how sustainability signals affect behavioral loyalty. It suggests price sensitivity as a moderator and brand trust as a mediator. Structural Equation Modeling (SEM) is used to test the suggested model using survey data from urban consumers in an emerging economy. The purpose of the study is to ascertain whether positive perceptions or true loyalty are produced by sustainable branding. By distinguishing attitudinal from behavioral loyalty, the research contributes to sustainable marketing literature and provides strategic insights for firms operating in price-sensitive markets.