The Mediating Role of Brand Trust Between Sustainability Perception, Brand Attitude, and Premium Pricing in Indonesian E-Commerce: A PLS-SEM Approach

Abstract

Price competition in digital marketplaces has intensified the need for brands to justify premium pricing beyond product features alone. While sustainability has emerged as a key differentiator, empirical evidence on whether sustainability perception directly drives premium pricing remains inconclusive. This study integrates the Theory of Planned Behaviour (TPB) with brand equity frameworks to examine how Brand Trust mediates the relationships between Sustainability Perception, Brand Attitude, and Premium Pricing in the Indonesian e-commerce context. Data were collected from 275 active e-commerce consumers via an online Likert-scale survey and analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). Results reveal that Brand Attitude and Sustainability Perception both significantly influence Brand Trust, which in turn positively affects Premium Pricing. Notably, the direct path from Sustainability Perception to Premium Pricing was found to be non-significant, indicating that sustainability perceptions elevate consumers' willingness to pay a premium only when channelled through Brand Trust. Brand Attitude, however, demonstrates a strong and significant direct effect on Premium Pricing. These findings suggest that digital brands seeking to monetise sustainability initiatives must prioritise trust-building strategies that translate green perceptions into credible brand signals. This study contributes both theoretical and managerial insights into the multi-stage psychological process underlying premium pricing decisions in competitive online retail environments.