An assessment of ethical branding on customer trust: A case study of a renewable energy firm in Kano, Nigeria
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Background of the study
Ethical branding is increasingly recognized as a crucial element in building customer trust and loyalty. In Kano, a renewable energy firm has adopted ethical branding strategies by emphasizing transparency, fairness, and a commitment to sustainability. These strategies include clear communication of business practices, responsible sourcing of materials, and active engagement in community welfare initiatives (Aminu, 2023). By aligning its brand with ethical values, the renewable energy firm aims to differentiate itself in a competitive market, appealing to consumers who prioritize social and environmental responsibility. Studies have shown that ethical branding can improve customer trust, reduce skepticism, and lead to long-term customer retention (Naseem, 2024). However, there is a need for empirical research to assess the extent to which ethical branding translates into increased customer trust in the renewable energy sector. This study investigates the relationship between ethical branding and customer trust by examining consumer perceptions, brand integrity, and loyalty levels in Kano (Chukwudi, 2025).
Statement of the problem
Despite the growing emphasis on ethical branding, its effect on customer trust in the renewable energy sector remains underexplored. Consumers may perceive ethical claims as superficial if not consistently demonstrated in practice (Aminu, 2023). Moreover, the competitive market in Kano poses challenges in establishing distinct ethical credentials that truly resonate with consumers (Naseem, 2024). This ambiguity in the relationship between ethical branding and customer trust complicates the strategic positioning of renewable energy firms. The study aims to address this gap by evaluating whether ethical branding initiatives effectively foster genuine customer trust and contribute to long-term loyalty (Chukwudi, 2025).
Objectives of the study:
To examine the impact of ethical branding on customer trust.
To identify the ethical elements that most influence customer perceptions.
To recommend strategies for strengthening ethical branding efforts.
Research questions:
How does ethical branding influence customer trust in the renewable energy sector?
Which ethical branding elements are most effective in building trust?
How can renewable energy firms enhance their ethical branding to foster customer loyalty?
Significance of the study
This study is significant as it explores the critical role of ethical branding in establishing customer trust within the renewable energy industry in Kano. Its findings will provide actionable insights for companies seeking to reinforce their brand integrity and build lasting consumer relationships. By linking ethical practices to customer trust, the research contributes to academic discussions and offers practical recommendations for optimizing ethical branding strategies, ultimately supporting long-term business success (Naseem, 2024).
Scope and limitations of the study:
The study is limited to assessing ethical branding and its impact on customer trust for a renewable energy firm in Kano. The findings are specific to this industry and geographic context.
Definitions of terms:
Ethical Branding: The practice of building a brand around values of transparency, fairness, and social responsibility.
Customer Trust: The confidence consumers have in a brand's integrity and reliability.
Renewable Energy Firm: A company that produces energy through sustainable, non-fossil fuel sources.
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