Home
Open Access

Research on World Agricultural Economy

PDF

Issue

Volume 7 Issue 2 (June 2026)

Section

Article

How to Cite

Loading...

ESG Practices and Customer-Based Brand Equity in Dairy Agribusiness: Implications for Sustainable Agricultural Markets

DOI: https://doi.org/10.36956/rwae.v7i2.3074

Received: 11 January 2026 | Revised: 6 March 2026 | Accepted: 11 March 2026 | Published Online: 30 March 2026

Copyright © 2026 Thi Chung Du. Published by Nan Yang Academy of Sciences Pte. Ltd.

Creative Commons LicenseThis is an open access article under the Creative Commons Attribution-NonCommercial 4.0 International (CC BY-NC 4.0) License.

Abstract

The dairy sector contributes significantly to agricultural economies through its role in food security, nutrition, and rural livelihoods. Although agri-food firms increasingly adopt Environmental, Social, and Governance (ESG) practices, empirical evidence on how these practices translate into brand-related market outcomes in emerging agricultural markets remains scarce. Drawing on stakeholder theory and signaling theory, this study investigates whether ESG practices function as signals that shape customer-based brand equity in the dairy industry. Survey data collected from 280 dairy consumers in Vietnam were analyzed using partial least squares structural equation modeling. The results indicate asymmetric effects of ESG dimensions on customer-based brand equity. Governance practices influence all brand equity dimensions, environmental practices are associated with brand associations and brand loyalty, while social practices primarily relate to brand loyalty. These results suggest that ESG initiatives help reduce information asymmetry and strengthen the perceived credibility of agri-food brands. This study contributes to branding and agri-food sustainability research by providing evidence of asymmetric ESG signaling effects in an emerging market context. The findings further inform managers and policymakers about the importance of governance transparency and ESG communication in building consumer trust and enhancing competitiveness in developing dairy markets.

Keywords: Agri‑Food Industry, ESG Practices, Consumer Perceptions, Customer‑Based Brand Equity, Dairy Indus try, Partial Least Squares Structural Equation Modeling (PLS‑SEM)

References

[1] Eccles, R.G., Ioannou, I., Serafeim, G., 2014. The Impact of Corporate Sustainability on Organizational Processes and Performance. Management Science. 60(11), 2835–2857. DOI: https://doi.org/10.1287/mnsc.2014.1984

[2] Puriwat, W., Tripopsakul, S., 2022. From ESG to DESG: The impact of DESG (digital environmental, social, and governance) on customer attitudes and brand equity. Sustainability. 14, 10480. DOI: https://doi.org/10.3390/su141710480

[3] Sen, S., Bhattacharya, C.B., 2001. Does doing good always lead to doing better? Consumer reactions to corporate social responsibility. Journal of Marketing Research. 38(2), 225–243. DOI: https://doi.org/10.1509/jmkr.38.2.225.18838

[4] Du, S., Bhattacharya, C.B., Sen, S., 2010. Maximizing business returns to corporate social responsibility (CSR): The role of CSR communication. International Journal of Management Reviews. 12(1), 8–19. DOI: https://doi.org/10.1111/j.1468-2370.2009.00276.x

[5] Keller, K.L., 1993. Conceptualizing, measuring, and managing customer-based brand equity. Journal of Marketing. 57(1), 1–22. DOI: https://doi.org/10.2307/1252054

[6] Cao, Y., 2023. ESG, Brand Trust and Brand Loyalty. Communications in Humanities Research. 22(1), 183–189. DOI: https://doi.org/10.54254/2753-7064/22/20231704

[7] Kim, Y., Jang, H., Seok, J., 2024. Uncovering the Relationship between ESG Practices and Firm Value: The Role of Reputation and Industry Sensitivity. Asia Marketing Journal. 25(4), 3. DOI: https://doi.org/10.53728/2765-6500.1620

[8] Rastogi, N., Singh, J., Tyagi, S., et al., 2025. Building Trust through ESG: A Study on Consumer Behaviour in Sustainable Fashion. F1000Research. 14, 1–16. DOI: https://doi.org/10.12688/f1000research.157754.1

[9] Su, T., Teo, P.C., 2025. From ESG to brand equity: The mediating role of brand reputation and brand attachment. International Journal of Academic Research in Economics and Management Sciences. 14(2), 125–139. DOI: https://doi.org/10.6007/IJAREMS/v14-i2/25417

[10] Chen, S., Song, Y., Gao, P., 2023. Environmental, social, and governance (ESG) performance and financial outcomes: Analyzing the impact of ESG on financial performance. Journal of Environmental Management. 345, 118829.

[11] Cheng, R., Kim, H., Ryu, D., 2024. ESG performance and firm value in the Chinese market. Investment Analysts Journal. 53(1), 1–15.

[12] Tripopsakul, S., Puriwat, W., 2023. Exploring the relationship between ESG, trust, brand reputation, and brand equity. International Journal of Advanced and Applied Sciences. 10(10), 71–77. DOI: https://doi.org/10.21833/ijaas.2023.10.008

[13] Chow, M.Y.C., Ho, S.P.S., 2024. Investigating the effect of ESG on retail banks’ customer equity. Journal of Financial Services Marketing. 29, 1330–1344. DOI: https://doi.org/10.1057/s41264-024-00271-x

[14] Makridou, G., Doumpos, M., Lemonakis, C., 2024. Relationship between ESG and corporate financial performance in the energy sector: Empirical evidence from European companies. International Journal of Energy Sector Management. 18(4), 873–895.

[15] IMARC Group, 2024. Vietnam Dairy Market Size, Share, Trends and Forecast by Product, Application, Distribution Channel, and Region, 2025–2033. Available from: https://www.imarcgroup.com/vietnam-dairy-market (cited 7 January 2026).

[16] Statista, 2024. Dairy products & eggs market—Vietnam. Available from: https://www.statista.com/outlook/cmo/food/dairy-products-eggs/vietnam (cited 7 January 2026).

[17] Feil, A.A., Schreiber, D., Haetinger, C., et al., 2020. Sustainability in the dairy industry: A systematic literature review. Environmental Science and Pollution Research. 27(27), 33527–33542.

[18] Feil, A.A., do Amaral, C.C., Schreiber, D., et al., 2023. Sustainability performance of small and medium dairy enterprises in Brazil. Sustainable Production and Consumption. 39, 301–310.

[19] Hoang, V., Saviolidis, N.M., Olafsdottir, G., et al., 2023. Investigating and stimulating sustainable dairy consumption behavior: An exploratory study in Vietnam. Sustainable Production and Consumption. 42, 183–195. DOI: https://doi.org/10.1016/j.spc.2023.09.016

[20] Gerber, R., Smit, A., Botha, M., 2024. An evaluation of environmental, social, and governance reporting in the agricultural sector. Business Strategy and Development. 7(1), e316. DOI: https://doi.org/10.1002/bsd2.316

[21] Hoang, V., Nguyen, A., Hubbard, C., et al., 2021. Exploring the governance and fairness in the milk value chain: A case study in Vietnam. Agriculture. 11(9), 884. DOI: https://doi.org/10.3390/agriculture11090884

[22] Freeman, E., 1984. Strategic Management: A Stakeholder Approach. Cambridge University Press: Cambridge, UK.

[23] Jones, T.M., 1995. Instrumental stakeholder theory: A synthesis of ethics and economics. Academy of Management Review. 20(2), 404–437. DOI: https://doi.org/10.2307/258852

[24] Spence, M., 1973. Job Market Signaling. Quarterly Journal of Economics. 87(3), 355–374. DOI: https://doi.org/10.2307/1882010

[25] Connelly, B.L., Certo, S.T., Ireland, R.D., et al., 2011. Signaling theory: A review and assessment. Journal of Management. 37(1), 39–67. DOI: https://doi.org/10.1177/0149206310388419

[26] Drover, W., Wood, M.S., Corbett, A.C., 2018. Toward a cognitive view of signalling theory: Individual attention and signal set interpretation. Journal of Management Studies. 55(2), 209–231. DOI: https://doi.org/10.1111/joms.12282

[27] Verbeke, W., 2005. Consumer acceptance of functional foods: Socio-demographic, cognitive and attitudinal determinants. Food Quality and Preference. 16(1), 45–57. DOI: http://dx.doi.org/10.1016/j.foodqual.2004.01.001

[28] Tripopsakul, S., Puriwat, W., 2022. Understanding the impact of ESG on brand trust and customer engagement. Journal of Human, Earth, and Future. 3(4), 430–440. DOI: http://dx.doi.org/10.28991/HEF-2022-03-04-03

[29] Cheng, L.K., Huang, H.L., 2025. Influence of environmental, social and governance (ESG) disclosures on consumer brand perceptions and behavioral intentions. Asia Pacific Journal of Marketing and Logistics. 37(7), 1955–1971. DOI: https://doi.org/10.1108/APJML-06-2024-0727

[30] Luo, X., Bhattacharya, C.B., 2006. Corporate Social Responsibility, Customer Satisfaction, and Market Value. Journal of Marketing. 70(4), 1–18. DOI: https://doi.org/10.1509/jmkg.70.4.1

[31] Friede, G., Busch, T., Bassen, A., 2015. ESG and financial performance: Aggregated evidence from more than 2000 empirical studies. Journal of Sustainable Finance & Investment. 5(4), 210–233. DOI: https://doi.org/10.1080/20430795.2015.1118917

[32] Mwirigi, D., Fekete-Farkas, M., Borbély, C., 2025. From Cow to Climate—Tracing the Path of Dairy Sustainability: Unveiling the Impact on Sustainable Development Goals through Bibliometric and Literature Analyses. Animals. 15(7), 931. DOI: https://doi.org/10.3390/ani15070931

[33] Buchetti, B., Arduino, F.R., Perdichizzi, S., 2025. A literature review on corporate governance and ESG research: Emerging trends and future directions. International Review of Financial Analysis. 97, 103759. DOI: https://doi.org/10.1016/j.irfa.2024.103759

[34] Aaker, D.A., 1992. The value of brand equity. Journal of Business Strategy. 13(4), 27–32. DOI: http://doi.org/10.1108/eb039503

[35] Aaker, D.A., 1996. Measuring Brand Equity across Products and Markets. California Management Review. 38, 102–120.

[36] Yoo, B., Donthu, N., 2001. Developing and Validating a Multidimensional Consumer-Based Brand Equity Scale. Journal of Business Research. 52(1), 1–14. DOI: http://doi.org/10.1016/S0148-2963(99)00098-3

[37] Keller, K.L., 2001. Building Customer-Based Brand Equity: A Blueprint for Creating Strong Brands. Marketing Science Institute: Cambridge, MA, USA.

[38] Zeithaml, V.A., 1988. Consumer perceptions of price, quality, and value: A means-end model and synthesis of evidence. Journal of Marketing. 52(3), 2–22.

[39] Grunert, K.G., Hieke, S., Wills, J., 2014. Sustainability labels on food products: Consumer motivation, understanding and use. Food Policy. 44, 177–189. DOI: https://doi.org/10.1016/j.foodpol.2013.12.001

[40] Nguyen, P.M., Vo, N.D., Nguyen, N.P., et al., 2020. Corporate social responsibilities of food processing companies in Vietnam from consumer perspective. Sustainability. 12, 71. DOI: https://doi.org/10.3390/su12010071

[41] Alkhawaja, A., Hu, F., Johl, S., et al., 2023. Board gender diversity, quotas, and ESG disclosure: Global evidence. International Review of Financial Analysis. 90, 102823. DOI: https://doi.org/10.1016/j.irfa.2023.102823

[42] Baboukardos, D., Gaia, S., Lassou, P., et al., 2023. The multiverse of nonfinancial reporting regulation. Accounting Forum. 47(2), 147–165. DOI: https://doi.org/10.1080/01559982.2023.2204786

[43] Lyon, T.P., Montgomery, A.W., 2015. The means and end of greenwash. Organization & Environment. 28(2), 223–249. DOI: https://doi.org/10.1177/1086026615575332

[44] Nugroho, D.P., Hsu, Y., Hartauer, C., et al., 2024. Investigating the interconnection between environmental, social, and governance (ESG), and corporate social responsibility (CSR) strategies: An examination of the influence on consumer behavior. Sustainability. 16(2), 614. DOI: https://doi.org/10.3390/su16020614

[45] Dedunu, H.H., Sedara, D., 2023. Impact of environmental, social, and governance practices on the consumer buying decision. In Intellectual Capital as a Precursor to Sustainable Corporate Social Responsibility. IGI Global: Hershey, PA, USA. pp. 129–147. DOI: https://doi.org/10.4018/978-1-6684-6815-9.ch008

[46] Hur, W.M., Kim, H., Woo, J., 2014. How CSR leads to corporate brand equity: Mediating mechanisms of corporate brand credibility and reputation. Journal of Business Ethics. 125(1), 75–86. DOI: https://doi.org/10.1007/s10551-013-1910-0

[47] Kang, J.W., Namkung, Y., 2018. The effect of corporate social responsibility on brand equity and the moderating role of ethical consumerism: The case of Starbucks. Journal of Hospitality & Tourism Research. 42(7), 1130–1151. DOI: https://doi.org/10.1177/1096348017727057

[48] Phung, T.B., Nguyen, T.N., 2023. The impact of corporate social responsibility authenticity to advocacy behaviors in Vietnam dairy industry: The role of attitude and trust. VNUHCM Journal of Economics-Law and Management. 7(1), 4021–4031. DOI: https://doi.org/10.32508/stdjelm.v7i1.1145

[49] Henson, S., Caswell, J., 1999. Food safety regulation: An overview of contemporary issues. Food Policy. 24(6), 589–603. DOI: https://doi.org/10.1016/S0306-9192(99)00072-X

[50] Unnevehr, L.J., Jensen, H.H., 1999. The Economic Implications of Using HACCP as a Food Safety Regulatory Standard. Food Policy. 24, 625–635. DOI: https://doi.org/10.1016/S0306-9192(99)00074-3

[51] Henson, S., Humphrey, J., 2010. Understanding the Complexities of Private Standards in Global Agri-Food Chains as They Impact Developing Countries. The Journal of Development Studies. 46, 1628–1646. DOI: https://doi.org/10.1080/00220381003706494

[52] de Jonge, J., Van Trijp, J.C.M., van der Lans, I.A., et al., 2008. How trust in institutions and organizations builds general consumer confidence in the safety of food: A decomposition of effects. Appetite. 51(2), 311–317. DOI: https://doi.org/10.1016/j.appet.2008.03.008

[53] Hair, J.F., Hult, G.T.M., Ringle, C.M., et al., 2014. A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Sage Publications: Thousand Oaks, CA, USA.

[54] Hair, J.F., Risher, J.J., Sarstedt, M., et al., 2019. When to Use and How to Report the Results of PLS-SEM. European Business Review. 31, 2–24. DOI: https://doi.org/10.1108/EBR-11-2018-0203

[55] Ringle, C.M., Wende, S., Becker, J.M., 2015. SmartPLS 3. SmartPLS GmbH: Boenningstedt, Germany.

[56] Podsakoff, P.M., MacKenzie, S.B., Lee, J.Y., et al., 2003. Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology. 88(5), 879–903.

[57] Kock, N., 2015. Common method bias in PLS-SEM: A full collinearity assessment approach. International Journal of e-Collaboration. 11(4), 1–10. DOI: https://doi.org/10.4018/ijec.2015100101

[58] Fornell, C., Larcker, D.F., 1981. Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research. 18(1), 39–50. DOI: https://doi.org/10.2307/3151312

[59] Cohen, J., 1988. Statistical Power Analysis for the Behavioral Sciences, 2nd ed. Lawrence Erlbaum Associates: Hillsdale, NJ, USA.

Online ISSN: 2737-4777, Print ISSN: 2737-4785, Published by Nan Yang Academy of Sciences Pte. Ltd.