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

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.