Why Ethical Branding Does Not Always Lead to Loyalty in Sustainable Skincare Brands

Authors

Hada Mutiara Zahra Savira Universitas Diponegoro, Semarang
Maulana Maghribi Universitas Diponegoro, Semarang
Kardison Lumban Batu Universitas Diponegoro, Semarang

DOI:

https://doi.org/10.54518/fid.4.1.2026.1408

Keywords:

Brand Trust, Customer Retention, Perceived Ethicality, Sustainable Skincare Branding

Abstract

This study examines why ethical branding does not always lead to customer loyalty in sustainable skincare brands. In the skincare industry, ethical claims related to sustainability, ingredient safety, and transparency have become increasingly important, yet consumer skepticism and greenwashing issues continue to weaken long-term relationships between consumers and brands. Grounded in the Commitment-Trust Theory of Relationship Marketing, this study explores the mediating roles of trust and satisfaction in explaining how perceived ethicality influences customer retention. The study adopts a systematic literature review approach using the PRISMA framework to synthesize previous studies related to perceived ethicality, brand trust, customer satisfaction, and customer retention. The findings indicate that perceived ethicality alone is insufficient to directly generate customer retention. Instead, ethical branding contributes to retention indirectly through the formation of trust and the enhancement of customer satisfaction. Trust functions as a central relational mechanism that reduces uncertainty and strengthens positive evaluations toward skincare brands. The study highlights the importance of authentic ethical branding strategies in building sustainable customer relationships in the digital era.

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Published

2026-06-09

How to Cite

Savira, H. M. Z., Maghribi, M., & Batu, K. L. (2026). Why Ethical Branding Does Not Always Lead to Loyalty in Sustainable Skincare Brands . Finance Innovations Digest, 4(1), 92–111. https://doi.org/10.54518/fid.4.1.2026.1408