The Impact of ESG Management by Automobile Companies on Consumer Purchase Intention

Jangwoo Kim, Euntack Im and Gwangyong Gim ()
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Jangwoo Kim: Graduate School of Management, Soongsil University, Seoul 06978, Republic of Korea
Euntack Im: Graduate School of IT Policy Management, Soongsil University, Seoul 06978, Republic of Korea
Gwangyong Gim: Department of Business Administration, Soongsil University, Seoul 06978, Republic of Korea

Sustainability, 2025, vol. 17, issue 19, 1-32

Abstract: Amid rising sustainability demands, the automotive industry must understand how its Environmental, Social, and Governance (ESG) management influences consumer purchase decisions for high-involvement products. This study investigates this relationship by examining the mediating roles of brand value, perceived quality, and corporate trust. To test the research model, we analyzed survey data from Korean automotive market consumers using partial least-squares structural equation modeling. The findings reveal that governance transparency and social responsibility significantly enhance corporate trust and brand value, which are the primary drivers of purchase intention. In contrast, environmental initiatives do not directly foster trust, and the effect of perceived quality is fully mediated by brand value and corporate trust. This study advances value-driven consumption theory by demonstrating that non-financial ESG dimensions—especially governance and social responsibility—can supersede functional quality in shaping purchase decisions in high-involvement contexts. These findings suggest that automakers should prioritize governance and social initiatives as strategic levers to build trust and strengthen long-term consumer loyalty.

Keywords: automotive industry; brand value; consumer purchase intention; environmental; social and governance (ESG); perceived quality; structural equation modelling; trust; sustainability marketing (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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