ESG influence on luxury brand strategy

: examining the impact of sustainability practices on brand reputation

Abstract

This dissertation investigates the influence of Environmental, Social, and Governance (ESG) practices on the brand reputation of luxury brands. The study aims to understand the significance of ESG dimensions in shaping consumer perceptions and their purchasing decisions within the luxury market. The research employs both qualitative and quantitative methodologies, including interviews and surveys, to gather comprehensive insights from various demographic groups. The results reveal a positive correlation between ESG practices and brand reputation, with specific ESG dimensions such as Workplace and Environment holding substantial importance. However, traditional non-ESG dimensions like Products and Services remain the most critical factors for consumers when evaluating luxury brands. The findings indicate that while ESG practices enhance brand reputation, especially among younger and older demographics, non-ESG factors are still paramount in driving consumer preferences. Additionally, the study highlights the demographic variations in the perception of ESG practices. Older consumers, particularly those aged 45-54 and over 65, demonstrate a higher sensitivity to ESG factors and are more likely to adjust their purchasing behaviors based on these practices. Gender differences are also notable, with females placing greater emphasis on ESG dimensions compared to males. The dissertation concludes that luxury brands should maintain a balanced approach by prioritizing non-ESG attributes such as high-quality products and services while integrating robust ESG practices to appeal to socially conscious consumers. This strategy will not only strengthen brand loyalty but also attract a broader customer base, ensuring sustainable growth in the competitive luxury market.

Date of Award	24 Jun 2024
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Pedro Miguel Torres Tavares (Supervisor)