Integrating Sustainability Marketing Paradigms and Brand Equity Models: A Legal–Behavioral Analysis of Gen Z Consumer Cognition and Ethical Compliance

Abstract

This study advances an integrative legal–behavioral framework to examine the interaction between sustainability marketing paradigms and brand
equity architectures within the cognitive schema of Generation Z consumers. Situating sustainability claims within established brand equity
models (e.g., customer-based brand equity and associative network theory), the research investigates how environmentally and socially oriented
brand signals are encoded, evaluated, and retrieved in Gen Z’s decision-making processes. Given Gen Z’s high digital literacy, value-driven
consumption patterns, and sensitivity to ethical inconsistencies, the study interrogates the mediating and moderating effects of perceived
authenticity, transparency, and regulatory trust on brand equity outcomes. Methodologically, the paper adopts a mixed analytical approach,
synthesizing doctrinal legal analysis with behavioral modeling. It operationalizes key constructs such as perceived sustainability credibility,
cognitive congruence, and ethical salience, and examines their influence on brand awareness, perceived quality, brand associations, and loyalty.
The study further incorporates legal variables, including compliance with consumer protection statutes, anti-greenwashing regulations, and CSR
disclosure mandates, to assess their impact on consumer trust formation and risk perception. Drawing on cognitive dissonance theory, signaling
theory, and attribution theory, the research explicates how discrepancies between communicated sustainability narratives and observable
corporate practices generate dissonance, leading to negative brand evaluations. Conversely, verifiable compliance and third-party certifications
function as credibility-enhancing signals that attenuate skepticism and reinforce positive brand schemas. The findings indicate that legal
compliance operates not merely as a normative constraint but as a strategic asset that enhances informational symmetry and reduces perceived
opportunism in sustainability communication. The study identifies regulatory frameworks as exogenous institutional mechanisms that shape
market-level expectations and influence micro-level consumer cognition. The alignment between sustainability messaging, actual corporate
conduct, and legal obligations emerges as a critical determinant of durable brand equity among Gen Z cohorts. The paper contributes to the
literature by proposing a tripartite conceptual model integrating sustainability marketing inputs, legal-regulatory variables, and cognitivebehavioral outputs. This model provides a robust analytical lens for evaluating ethical branding efficacy in contemporary markets. The
implications are significant for policymakers in refining regulatory standards, and for firms in designing compliance-centric, cognition-aligned
sustainability strategies that optimize brand equity under conditions of heightened consumer scrutiny.