The impact of Millennials’ and Gen Zs’ environmental sustainability expectations on brand perception and purchase decisions in luxury brands

Abstract

Reducing global warming and incorporating sustainability practices aligned with environmental, social, and governance (ESG) principles into corporate strategies are essential priorities. Rising consumer demand for sustainability, coupled with growing awareness and transparent communication, highlights trends businesses must address. This dissertation examines the role of sustainability in the luxury industry, focusing on environmental practices while acknowledging the complementary roles of social and governance factors. It also explores trust issues alongside core luxury attributes, with emphasis on two generational cohorts known for their eco-consciousness: Millennials and Gen Z. Using a mixed-methods approach, this research integrates qualitative insights from in-depth interviews with quantitative data from an online survey conducted in Qualtrics and analyzed through SPSS. Findings reveal growing interest in sustainable alternatives among luxury consumers, although Millennials and Gen Z assign moderate importance to sustainability when making luxury purchases. Skepticism, trust issues, and limited communication about sustainability integration negatively influence brand perceptions. Gen Z demonstrates slightly stronger support for sustainable luxury compared to Millennials. These findings contribute to understanding the evolving role of sustainability, reflecting a trend likely to gain further importance. This dissertation offers strategic recommendations for luxury brand managers to align sustainability initiatives with consumer expectations and strengthen brand loyalty.

Date of Award	31 Jan 2025
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Pedro Tavares (Supervisor)