Content uploaded by Muh Tabran
Author content
All content in this area was uploaded by Muh Tabran on Dec 05, 2023
Content may be subject to copyright.
ARTIKEL
BRANDING: Jurnal Ilmiah Manajemen dan Bisnis 36
Jurusan Manajemen FEBI UIN Sunan Gunung Djati Bandung
https://www.journal.uinsgd.ac.id/index.php/branding
SUSTAINABLE BRANDING REVOLUTION: BUILDING AN
ENVIRONMENTALLY CONSCIOUS BRAND AND INFLUENCING
CONSUMER CHOICES
Farida Akbarina1, Denpharanto Agung Krisprimandoyo2, Reni Sara Indrawati3,
Muh Tabran4, Iman Ahmad Gymnastiar5
1Politeknik Negeri Malang
2Universitas Ciputra Surabaya
3Universitas Pelita Harapan
4UIN Alauddin Makassar
5Universitas Pendidikan Indonesia
Email: faridaakbarina@polinema.ac.id
Abstract
Sustainable branding is a socially and environmentally responsible approach for
companies in the modern era. This research aims to analyze the role of sustainable
branding in building a positive brand reputation and influencing purchasing
decisions. The research method employs a literature review to integrate knowledge
from various relevant sources. The discussion's outcomes indicate that consumer
awareness of environmental issues is increasing, driving the demand for sustainable
products. Sustainable branding strategies aid in establishing a favorable brand image
among environmentally conscious consumers. Despite implementation challenges,
innovation and ethics emerge as key factors to overcome these hurdles. In conclusion,
sustainable branding plays a crucial role in cultivating a positive brand reputation and
influencing purchasing decisions. Companies need to adapt to consumer trends and
environmental concerns to achieve long-term success and amplify positive impacts on
society and the environment.
Keywords: Sustainable Branding, Brand Reputation, Purchasing Decisions, Consumer
Awareness, Social and Environmental Responsibility.
A. INTRODUCTION
Sustainability and environmental issues are the biggest challenges faced by the
business world in the current era. Climate change, pollution, loss of biodiversity, over-
exploitation of natural resources, over-consumption and large waste production,
socio-economic inequality, and sustainable development are all problems associated
with this. Therefore, companies must pay attention to their environmental and social
impacts through sustainable branding. According to Grubor & Milovanov (2016), an
understanding of sustainable branding is very important to drive change.
The results of research by Elistia E (2016) explain that ethical marketing actions
and corporate social responsibility can have an impact on brand image and improve
brand management. Dikutat Ayuningrum, S., Dharma, and Lindawati, L. (2020)
shows that brands that are environmentally and socially friendly can increase
customer perceptions. In this regard, sustainable branding can help companies build
ARTIKEL
BRANDING: Jurnal Ilmiah Manajemen dan Bisnis 37
Jurusan Manajemen FEBI UIN Sunan Gunung Djati Bandung
https://www.journal.uinsgd.ac.id/index.php/branding
a good reputation in the eyes of consumers who care about the environment and
social.
Sustainable branding is a company's effort to improve people's perception of
their brand. Responding to these challenges by integrating sustainability strategies
into branding can provide positive benefits to company performance. Mildawati
(2018) explains that branding sustainability strategies have a positive impact on
company performance. The study found that disclosure of climate change strategies
is associated with better performance in corporate environments, demonstrating
corporate commitment to addressing environmental issues.
Today's consumers are increasingly aware of environmental and social issues
related to the goods and services they buy because access to information is easier and
faster. Current trends show that many buyers are increasingly concerned about
environmental issues and pay more attention to how the products they buy impact
the environment (Kusumawati & Tiarawati, 2022). Therefore, branding is considered
as a promotional strategy that has the ability to build a good brand reputation and a
communication strategy to influence consumer purchasing decisions. In addition,
research shows that branding influences purchase choices (Usadha & Merta, 2022).
Sustainable branding considers corporate social responsibility and
sustainability, which can be applied to brand management practices (Foroudi &
Palazzo, 2021). Opportunities for brands that can implement sustainable branding
strategies arise as a result of the increasing consumer needs for sustainable products.
Although it is important, implementing a sustainable branding strategy is not easy
and is often faced with various problems.
Sustainable branding challenges can come from internal sources, such as
problems with company branding rules, problems from external sources (industry
competition), or problems that cover the entire process and scope of the business
(Akbar et al., 2021). Taking into account these problems and obstacles, companies
must take strategic actions to build sustainable branding that has a positive impact on
society, customers and the environment. A case study of brands that successfully
implemented sustainable branding demonstrated that by focusing on relevant social,
environmental and economic issues, they were able to build a strong and enduring
brand image. One example of a company that has taken steps to support
environmental policies are Hyundai and Tesla.
Tesla has discontinued the production of fossil-fuel cars and is developing
electric-powered cars, while Hyundai is committed to developing solar and
hydrogen-powered cars (Gavsi, U.S., 2023). Thus, sustainable branding can become
the main strategy to achieve business sustainability and have a positive impact on
both the environment and society. By implementing an HR management strategy that
emphasizes innovation, sustainability and ethics, organizations can develop in a
sustainable manner (Basuki, N., 2023). In addition, increasing public awareness of
social and environmental issues will be a major driver for the development of
sustainable branding in the future. This shows that consumers are increasingly
concerned about the environment and are more prepared to buy green products.
Customers prefer to buy green products that guarantee the safety and naturalness of
the basic ingredients used than ordinary products, even though they are more
expensive (Shaputra, R. K., 2013).
ARTIKEL
BRANDING: Jurnal Ilmiah Manajemen dan Bisnis 38
Jurusan Manajemen FEBI UIN Sunan Gunung Djati Bandung
https://www.journal.uinsgd.ac.id/index.php/branding
The purpose of writing this article is to provide an overview of the sustainable
branding revolution which includes how this revolution is shaping brands that care
about the environment and how this revolution has an impact on contemporary
consumer desires for sustainability. One part of the "sustainable branding revolution"
is the application of sustainability principles and values in a brand. Brand goals,
principles and actions must be aligned with social and environmental obligations.
Consumers are more concerned with the impact of their choices, and support brands
with strong commitment.
B. METHOD
The literature review method shows that this approach has a very valuable and
essential value in the research process. By conducting a literature review, researchers
can collect and integrate existing knowledge on a particular topic from various
sources. Through analysis and synthesis of literature, researchers can gain an
understanding of the latest developments in the research field, identify knowledge
gaps, and determine future research directions.
C. RESULT AND DISCUSSION
The results of this study enhance our understanding of the relationship
between consumers' perceptions of sustainable brands and how these perceptions
influence their actions. This research not only looks at how consumers view
sustainable brands, but also explains how this perception influences their actions.
Previous research has focused on how consumers perceive and choose sustainable
brands, but this article goes further into how these perceptions influence their choice
of sustainable brands.
Continuous branding is very important to build a good product reputation.
Businesses often carry out sustainable initiatives to attract customers because of
consumer awareness of the importance of social and environmental responsibility. For
example, Mjd Studies, A.M. (2002), shows that the textile industry in Indonesia faces
several problems, including slow economic growth that hinders market growth.
However, textile companies are taking steps to implement sustainable branding so as
to successfully increase their exports, as well as demonstrate commitment to social
and environmental issues. This explains that, a brand that successfully integrates
sustainability messages into a marketing communication strategy, then they succeed
in influencing positive perceptions from consumers.
Integrating sustainability branding messages into marketing communication
strategies can increase consumers' positive perceptions of brands. Through a clear and
consistent commitment to environmental and social issues, brands can make
consumers feel emotionally connected. This research shows that companies that are
able to properly implement sustainable branding strategies have a competitive
advantage in building a good reputation in the eyes of consumers.
Environmentally conscious consumers tend to be more attracted and more
likely to choose products and services from brands that are committed to sustainable
practices. This is supported by research results showing that consumers are
increasingly paying attention to the environmental and social impacts of the products
they buy. Therefore, companies must pay attention to sustainability issues in
ARTIKEL
BRANDING: Jurnal Ilmiah Manajemen dan Bisnis 39
Jurusan Manajemen FEBI UIN Sunan Gunung Djati Bandung
https://www.journal.uinsgd.ac.id/index.php/branding
designing their branding strategy. One of the branding strategies that can help
companies build customer trust in their brand is content marketing. This strategy is
carried out by creating interesting and useful content for consumers, such as articles,
videos, podcasts, or infographics.
The application of sustainable branding must be carried out sincerely and
consistently. This is because customers are increasingly critical of greenwashing and
marketing efforts that are just the surface without any concrete evidence. Therefore,
brand efforts in adopting sustainable practices must be genuine and clear. The
importance of sustainable branding as an effective method for creating a good brand
reputation and influencing customer perceptions and behavior. Companies that can
incorporate sustainability into their brand strategy can help both the environment and
their own business sustainability. The results of this study indicate that sustainable
branding is not only related to brand perceptions or consumer preferences, but also
about how brands can contribute to changes in consumer behavior. By understanding
how sustainable brand perceptions influence consumer behavior, brands can create
better strategies to support sustainability and social responsibility goals.
The concept of sustainability has become very important in recent years, and
company management is paying more and more attention to the concept of corporate
sustainability. The future success and competitive advantage of the company is highly
dependent on sustainability-oriented brand management. This is because companies
must pay more attention to their social responsibilities, especially since educated
interested parties can influence the company's reputation through media and social
networks (Meffert, H.). Sustainability is very important in today's business world.
Companies must adapt to the trends and needs of customers who are increasingly
concerned with social and environmental responsibility. Companies can achieve a
competitive advantage in an increasingly dynamic market by building a solid
foundation for long-term success through implementing sustainability-oriented
brand management.
The sustainable branding revolution is a paradigm shift in the marketing
industry where brands are not only focused on business, but also on social and
environmental issues. Today, companies are being asked by consumers, regulators
and society to adopt sustainable practices and be responsible for the environmental
impact of their operations. Therefore, a continuous branding revolution is a strategic
choice for brands to build a good reputation in the eyes of customers and the public.
Consumers who are increasingly concerned about the environment have
become one of the main factors in their purchasing decisions. This awareness has led
to a demand for environmentally friendly products, and companies are facing the
challenge of reducing their environmental impact. However, this awareness also
opens up new business opportunities for companies capable of creating long-lasting
innovative solutions (Rustam, A., Wang, Y., & Zameer, H., 2020).
This explanation shows that increased environmental awareness among
consumers has a significant influence on the business world. Consumer purchasing
decisions are influenced by these factors, which tend to choose goods that are
environmentally friendly and have a positive impact on the environment. The
demand for eco-friendly goods brings business opportunities for companies to offer
ARTIKEL
BRANDING: Jurnal Ilmiah Manajemen dan Bisnis 40
Jurusan Manajemen FEBI UIN Sunan Gunung Djati Bandung
https://www.journal.uinsgd.ac.id/index.php/branding
creative, sustainable solutions. However, companies also face the problem of reducing
the environmental impact caused by brand operations.
Companies that are able to create products and solutions towards a sustainable
branding revolution can achieve success and have a competitive advantage in a
market that is increasingly concerned about environmental issues. To identify
themselves as socially and environmentally responsible businesses, companies must
use a variety of approaches to implement sustainable branding. Strategic direction,
effective collaboration with internal and external stakeholders, and improvement of
operational and value chain performance are some of the components of the
company's sustainability strategy. This sustainability strategy offers many advantages
for businesses (Kashmanian, R. M., Wells, R. P., & Keenan, C., 2011). As a result, to
achieve social and environmental sustainability goals, the company places great
importance on branding and sustainability strategies.
Loh, L. dan Tan, S. (2020) explained that companies that make sustainability
reports and adopt sustainable practices have a better brand image. Sustainable
practices include the use of renewable energy and environmentally friendly methods.
Sustainable practices can help build and maintain a good brand image in the eyes of
consumers and other stakeholders because companies show concern for social and
environmental issues. In addition, companies that carry out digital branding by
implementing a sustainable branding revolution have a good image in the eyes of
customers and gain great advantages in achieving leadership. The company has a
competitive advantage in many ways compared to its competitors, which determines
this leadership. Leading companies have both monetary value and real value. Such
leadership can impact product quality and serve as a model for other organizations.
Sustainable branding in the digital world is becoming increasingly important in the
era of digital technology (Batu, M., & Kutlu, Ö., 2023).
Sustainable branding enables companies to interact with customers, build a
good brand reputation and convey sustainability values. Companies that are
successful in sustainable branding tend to have a good reputation in the eyes of
customers, increase trust, and earn greater profits than their competitors. By
increasing share value and customer loyalty, a strong brand can increase the financial
and tangible value of a company.
Consumer psychological factors influence their purchasing decisions in the era
of continuous branding revolution. The research results of Vainikka, B. (2015) show
that this psychological component positively influences consumer purchasing
decisions; this includes product beliefs, product brand beliefs, product knowledge,
product feelings, and product reliability. However, research conducted by Sharif, MS,
Shao, B, Xiao, and Saif, MK (2014) explains that certain personality components, such
as being extroverted, friendly, and open to experiences, have a positive impact. The
other personality components, on the other hand, did not have a significant impact.
However, external environmental factors, such as perceived social influence,
perceived risk, and perceived cost, do not have a significant impact on customer
confidence.
Some things that need to be considered in making better purchasing decisions
include trust in products and brands, product knowledge, feelings about products,
and product reliability. Thus, marketers (sales) must understand the psychological
ARTIKEL
BRANDING: Jurnal Ilmiah Manajemen dan Bisnis 41
Jurusan Manajemen FEBI UIN Sunan Gunung Djati Bandung
https://www.journal.uinsgd.ac.id/index.php/branding
aspects to create a better branding strategy. These factors include consumer traits,
such as extroverted, friendly, and open. While there are great advantages of
implementing sustainable branding, brands face constraints while implementing it.
A paradigm shift regarding unlimited resources and awareness of the
importance of sustainability are some of the challenges. Every aspect of human life
will be affected by this problem, including economic, political, social and
environmental. Sustainability is very important for the manufacturing industry, and
to achieve its goals, new technologies, business models, and ways of thinking are
needed (Garetti et al., 2012). To solve future problems, research and development will
be very important.
The benefits of implementing sustainable branding include 1Improvement of
brand reputation, 2Business Benefits, 3Consumer Support, 4Innovation and
Differentiation. While the challenges in implementing sustainable branding include
paradigm shifts and awareness of the importance of sustainability needed to
implement sustainable branding. A company has to change the way they think and
incorporate sustainability into every aspect of their operations. To achieve sustainable
branding, all sectors must make changes in technology, business models and
operational practices. So companies must continue to develop innovative and
sustainable solutions to deal with environmental and social changes. By
understanding these benefits and challenges, companies can take appropriate actions
to implement sustainable branding and gain competitive advantage by building
consumer trust.
Certain companies have recorded an extraordinary success rate after adopting
a sustainable approach. Sustainability is now considered an important component of
strategic management. A well-designed and executed sustainability strategy can
increase a company's competitiveness in competition and increase their brand value,
Carcano, L. (2013). Taken together, these explanations show that sustainability has
become an important component in modern industry. Companies that implement a
sustainability strategy have a great opportunity to achieve long-term success and
strengthen their position in an increasingly competitive market. Companies can also
use sustainability strategies to enhance their brand reputation and increase their
competitiveness in certain market segments.
Sustainable branding offers business opportunities and ethical consequences.
Brands must ensure that their responsibility to the environment and society is visible
and measurable. Communication must be clear and honest and accountable to all
parties involved. The sustainable branding revolution faces challenges and
opportunities in the future as it continues to evolve. One of the advantages of this
opportunity is the possibility to enter a wider market which has consumers who are
increasingly concerned about the environment and are pushing for increased
industrial sustainability. In the future, it will be difficult to stay creative and adapt to
changing lifestyles and consumer needs.
D. CONCLUSION
The result of this description is that sustainability has become an important
component in the modern business world. Companies that implement a sustainability
strategy have a great opportunity to achieve long-term success and strengthen their
ARTIKEL
BRANDING: Jurnal Ilmiah Manajemen dan Bisnis 42
Jurusan Manajemen FEBI UIN Sunan Gunung Djati Bandung
https://www.journal.uinsgd.ac.id/index.php/branding
position in an increasingly competitive market. Sustainability has significant ethical
consequences besides enhancing brand reputation and business profits. Brands must
prove and demonstrate their commitment to the environment and society. Moreover,
these findings have far-reaching social and economic ramifications. This research can
help in the creation of policies that encourage customers to act more sustainably. It
also gives us an opportunity to talk about how brands contribute to social change.
The sustainable branding revolution continues to evolve and face challenges
and opportunities in the future. Future opportunities include expanding markets with
increasingly environmentally conscious consumers and increasing overall industry
sustainability. Future challenges also involve the need to continue to innovate and
adapt to changing trends and consumer demands. Therefore, this research provides a
deeper and more relevant understanding of how sustainable brands influence
consumer actions. This is expected to be the foundation for the development of a
stronger and more relevant branding strategy that supports sustainable goals and
responds to the environmental and social challenges facing society today.
REFERENCES
Grubor, A., & Milovanov, O. (2016). Sustainable branding. ENTRENOVA-ENTerprise
REsearch InNOVAtion, 2(1), 329-336.
Mildawati, T. (2018). Pengaruh Strategi Perubahan Iklim Terhadap Kinerja Perusahaan
dengan Pengungkapan Perubahan Iklim dan Kinerja Lingkungan sebagai Variabel
Mediasi (Doctoral dissertation, Universitas Airlangga).
Kusumawati, A., & Tiarawati, M. (2022). Pengaruh Green Perceived Risk dan Green
Packaging terhadap Green Purchase Intention Pada Produk Skincare Avoskin:
Studi pada konsumen terhadap niat beli produk Avoskin. Sibatik Journal: Jurnal
Ilmiah Bidang Sosial, Ekonomi, Budaya, Teknologi, dan Pendidikan, 1(10), 2071-2084.
Usadha, D. N., & Merta, I. K. (2022). Peran Branding Terhadap Keputusan Pembelian
Dimediasi Word of Mouth Marketing di Perusahaan Lulur Sekar Jagat. Jurnal
Ilmiah Satyagraha, 5(2), 67-73.
Foroudi, P., & Palazzo, M. (Eds.). (2021). Sustainable branding: ethical, social, and
environmental cases and perspectives. Routledge.
Akbar, M. B., Foote, L., Lawson, A., French, J., Deshpande, S., & Lee, N. R. (2021). The
social marketing paradox: challenges and opportunities for the
discipline. International Review on Public and Nonprofit Marketing, 1-23.
Gavsi, A. S. (2023). The impact of less carbon emission on the brand image of Tesla and
Hyundai in the UK (Master's thesis, İstanbul Gelişim Üniversitesi Lisansüstü
Eğitim Enstitüsü).
Basuki, N. (2023). Mengoptimalkan Modal Manusia: Strategi Manajemen Sumber
Daya Manusia Yang Efektif Untuk Pertumbuhan Organisasi Yang
Berkelanjutan. Komitmen: Jurnal Ilmiah Manajemen, 4(2), 182-192.
Shaputra, R. K. (2013). Penerapan green marketing pada bisnis produk
kosmetik. Jurnal Jibeka, 7(3), 47-53.
Meffert, H., & Rauch, C. (2014). Sustainable Branding–Konzept, Wirkungen und
empirische Befunde. Sustainable Marketing Management: Grundlagen und
Cases, 159-174.
ARTIKEL
BRANDING: Jurnal Ilmiah Manajemen dan Bisnis 43
Jurusan Manajemen FEBI UIN Sunan Gunung Djati Bandung
https://www.journal.uinsgd.ac.id/index.php/branding
Batu, M., & Kutlu, Ö. (2023). Sustainable Branding in Digital Environment in Terms of
Corporate Communication. In New Normal in Digital Enterprises: Strategies for
Sustainable Development (pp. 27-45). Singapore: Springer Nature Singapore.
Rustam, A., Wang, Y., & Zameer, H. (2020). Environmental awareness, firm
sustainability exposure and green consumption behaviors. Journal of Cleaner
Production, 268, 122016.
Kashmanian, R. M., Wells, R. P., & Keenan, C. (2011). Corporate Environmental
Sustainability Strategy: Key Elements. The Journal of Corporate Citizenship, 44,
107–130.
Loh, L., & Tan, S. (2020). Impact of sustainability reporting on brand value: an
examination of 100 leading brands in Singapore. Sustainability, 12(18), 7392.
Vainikka, B. (2015). Psychological factors influencing consumer behaviour.
Sharif, M. S., Shao, B., Xiao, F., & Saif, M. K. (2014). The impact of psychological factors
on consumers trust in adoption of m-commerce. International Business
Research, 7(5), 148.
Garetti, M., & Taisch, M. (2012). Sustainable manufacturing: trends and research
challenges. Production planning & control, 23(2-3), 83-104.
Sheth, J. N., & Parvatiyar, A. (2021). Sustainable marketing: Market-driving, not
market-driven. Journal of macromarketing, 41(1), 150-165.
Carcano, L. (2013). Strategic Management and Sustainability in Luxury Companies:
The IWC Case. The Journal of Corporate Citizenship, 52, 36–54.
Sheth, J. N., Sethia, N. K., & Srinivas, S. (2011). Mindful consumption: A customer-
centric approach to sustainability. Journal of the academy of marketing science, 39,
21-39.
Elistia, E. (2016). An Ethical Marketing Perspective: Corporate Social Responsibilites
for Strengthening Corporate Brand Management (Study Case in Fast Moving
Consumer Goods in Indonesia). Jurnal Ekonomi Universitas Esa Unggul, 7(2),
78309.
Ayuningrum, S., Dharma, S., & Lindawati, L. (2020). Analisis Citra Merek Kosmetik
The Body Shop di Kota Padang. Abstract of Undergraduate Research, Faculty of
Economics, Bung Hatta University, 17(2), 1-2.
Mjd, A.M. (2002). Formulasi Strategi PT. Unitex Tbk.
