Investigating customer perceptions of ai effectiveness in sustainable supply chains for climate action: impacts on behaviors toward luxury brands – an empirical study in Vietnam

Abstract

Luxury brands are increasingly incorporating AI tools into their operations to address sustainability challenges. This trend reflects their commitment to sustainable business practices and strategies as the luxury industry enters the “ethical era”. This study investigated the customers’ perception of the effectiveness of integrating AI tools into sustainable supply chains to mitigate climate change, then driving their willingness to pay a premium price in the luxury segment. The study employed a quantitative approach, collecting data from 751 respondents in metropolitan areas of Vietnam through an online survey. The partial least squares (PLS) path modeling method via SMARTPLS 3 was used to test the hypotheses and analyze the research model. The results highlight the pivotal role of sustainable initiatives leveraging AI within supply chains in enhancing consumer perception. Notably, perceived AI effectiveness significantly increases willingness to pay a premium, whereas perceived sustainability and the diagnosticity of green information exert limited direct effects. Furthermore, climate change anxiety moderates these relationships, emphasizing the importance of emotional factors in sustainable luxury consumption. This research significantly contributed to the research field of AI integration in sustainable supply chains and sustainability. Luxury brands can transform their strategies by leveraging AI to create sustainable offerings that align with shifting consumer values, enhance corporate social responsibility, and contribute to achieving sustainable development goals.