EXPLORING THE IMPACT OF ESG ON GEN Z’S TRUST AND PURCHASE INTENTIONS IN SUSTAINABLE FASHION

Abstract

The rise of fast fashion has raised increasing concerns regarding sustainability, highlighting the importance of ESG practices in shaping consumer decision - making. This study investigates how ESG practices, brand image, trust, and word-of-mouth (WOM) influence purchase intention among Generation Z consumers in Hanoi, Vietnam. Data were collected through an online survey of Gen Z consumers and analyzed using SmartPLS 4, applying the structural equation modeling (SEM-PLS) approach. The results indicate that ESG practices significantly enhance brand image and trust, with trust emerging as the most decisive factor in driving purchase in-tention. Moreover, WOM exerts a notable effect on trust, reinforcing its role in validating consumers’ perceptions of sustainable brands. The study contributes by offering a novel integrated framework that links ESG practices with consumer behavior, providing empirical evidence from a developing country. Managerial implications suggest that fashion brands should emphasize transparency in ESG reporting and leverage peer-to-peer WOM strategies to strengthen consumer trust.