The Moderating Effects for the Relationships between Green Customer Value, Green Brand Equity and Behavioral Intention

By Ho, Thuy Ngoc; Wu, Wann Yih et al. | Academy of Strategic Management Journal, August 2019 | Go to article overview

The Moderating Effects for the Relationships between Green Customer Value, Green Brand Equity and Behavioral Intention


Ho, Thuy Ngoc, Wu, Wann Yih, Nguyen, Phuoc Thien, Chen, Hsiu Chuan, Academy of Strategic Management Journal


INTRODUCTION

In the late 1960s and the 1970s, the Western people started to recognize that natural resources had been exhausted and inhabitants were coming to a serious deprivation. Against horrible environmental disasters, consumer's behaviors change toward an increasingly aware of the environmental concerns and wishes of environmental protection (Chen, 2008a; Hartmann & Apaolaza-Ibanez, 2012; Matthes et al., 2014; McIntosh, 1991). In the late 1980s, the conception of "green market" has emerged and gradually swept all over the world over the few decade, after the idea of "green marketing" also occurred accordingly has transformed through several stages from the late 1980s, in recent year, because of a vast amount of environmental pollution which obviously linked to industrial manufacturing in the world, the society recognized that the environmental issues have being increased steadily (Chen, 2008a) to integrate every. Consequently, the Kyoto Protocol was adapted in Kyoto, Japan, on 11th December, 1997, which is an international agreement associated with the United Nations Framework Convention on Climate Change (UNFCCC), is also an international treaty that to reduce emissions of Greenhouse Gases (GHG) by framing binding obligations on industrialized countries, as well as which commits its parties by setting internationally binding emission reduction targets. Subsequent to Kyoto Protocol, public awareness of "carbon offset" and "carbon neutrality" has attracted people's attention. Carbon offsetting becomes a popular topic in public. To reduce GHG emissions elsewhere via paying someone else, the aim of buying carbon offsets is to compensates for or "offset" their own emission. Companies purchase large antiquities of carbon offsets to "neutralize" their carbon footprint or that of their products for their so called "eliminate neutrality", while individuals look for offset their travel emissions (Kollmuss et al., 2008). That is to say, "carbon offset" and "carbon neutrality" are the kind the transformed "green marketing' strategies. Environmental considerations into all aspects of traditional marketing. Subjected to green marketing, environmental issues should be balanced with primary customer needs (Ottman, 2008: 2011).

The first and primary purpose of this study is to propose and investigate the moderating effects of green marketing on the relationship between customer value and brand equity. In fact, the relationship between customer value and brand equity is generally proved to be significantly positive (Faircloth et al., 2001; Hoeffler & Keller, 2002). However, the emergence of green marketing certainly implied a lot of changes arising from the relationship in it, when the environmental aspects are taken into account. The concept of customer value will be changed, its influences on the brand equity cannot be exactly the same as before and of course the moderating effects of green marketing on this relationship are in need of further investigations.

Customer value, the difference of what you get from what you give in buying and consuming a good and service, is now developed toward the "green" aspects. The value used for measurement by customer should take into account the environmental issues no matter what the value's dimensions: emotional, social and or functional (Sweeney & Soutar, 2001). The influences of customer value on brand equity which is defined as the value of having a prominently good brand name will therefore be moderated differently. The green marketing which is considered as the moderator of the above relationship is now included two more factors: the green promotion (offsetting and neutralizing contamination) and green marketing awareness (better recognition and understanding of environment friendly products). All of those changes are taken into account within this study analytical framework.

Another moderator is brand loyalty. Previous studies asserted that brand loyalty is an important factor to create long-term benefits for the organization (Chi et al. …

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