Unpacking the green premium business strategy: The effect of environmental sustainability on customer behaviour

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Abstract

This study examines the influence of environmental, social, and governance (ESG) initiatives on Thai consumers’ willingness to pay a premium for instant coffee. Using a quantitative approach, data were collected through online surveys targeting Bangkok-based consumers familiar with ESG practices. The Cochran and Carroll (1953) formula determined a representative sample of 322 respondents. The survey included demographic details, behavioural intentions, and attitudes toward ESG initiatives, assessed via a five-point Likert scale. Results show that environmental factors significantly boost willingness to pay a premium (β = 0.266). Although social initiatives, such as farmer support and health promotion, were not statistically significant, they contributed to brand loyalty. Governance initiatives, including supply chain transparency, positively influence brand perceptions, encouraging premium purchases. Findings highlight ESG practices as key drivers of positive brand experiences and pricing potential. Social media emerged as a cost-effective channel for promoting ESG initiatives. These insights suggest that companies that integrate ESG into their operations can strengthen customer trust, competitiveness, and sustainability, ensuring long-term business success.

Keywords: ESG, Environmental, Social, Governance, Premium Price, Instant Coffee

Authors’ individual contribution: Conceptualization — W.S.; Methodology — W.F.; Investigation — W.F. and W.S.; Resources — W.F. and W.S.; Writing — W.F. and W.S.; Supervision — W.S.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: D400, M100, O44

Received: 02.07.2024
Revised: 24.10.2024; 21.11.2024; 17.06.2025
Accepted: 27.06.2025
Published online: 02.07.2025

How to cite this paper: Faijaidee, W., & Sapsanguanboon, W. (2025). Unpacking the green premium business strategy: The effect of environmental sustainability on customer behaviour. Corporate & Business Strategy Review, 6(3), 88–95. https://doi.org/10.22495/cbsrv6i3art8