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This study aims to investigate the conditional relationships among sustainability implementation, brand awareness, brand attitude and brand loyalty through the lens of transformative service research (TSR). The research also aims to explain how brand loyalty moderates the mediated effect of brand awareness and attitude in the context of social and environmental sustainability initiatives.

Using both primary and secondary data sources from 31 prominent service companies and their 6,891 customers, this paper investigates the impact of sustainability practices and brand awareness on customer attitude. The paper also examines the moderated mediation effect of brand loyalty, explaining how it alters brand attitudes in the context of sustainability implementation. Finally, the study conducts a comparative analysis of how environmental and social shape brand attitudes in loyal customers.

Sustainability implementation has a negative impact on both brand awareness and customer attitude. However, this negative influence is mitigated for highly brand-loyal customers, resulting in a positive brand attitude. Further, the comparative analysis reveals that social implementation positively influences brand attitude in high-loyalty contexts.

This research uses subjective judgments of researchers regarding companies’ sustainability practices, combining them with customer attitudes gathered through survey questionnaires. Additionally, the data set comprises data from 31 large service companies, potentially limiting the generalizability of findings to large service companies. Nevertheless, this paper extends TSR into the realm of sustainability and branding.

The positive outcomes of sustainability implementation practices are most pronounced when customer loyalty toward a brand is strong. Social implementation has a more potent effect on brand attitude, particularly among loyal customers. Companies can tailor their sustainability efforts more effectively.

With the lens of TSR, this research deepens our understanding of how sustainability affects consumer psychology but also offers a methodological advancement by using advanced statistical models and a variety of data sources. The distinctiveness of this research is also highlighted in the examination of how environmental and social sustainability initiatives influence brand attitude, especially among customers who exhibit strong brand loyalty.