Ó Springer 2009
The Drivers of Green Brand Equity: Green Brand Image, Green Satisfaction, and Green Trust
ABSTRACT. This article proposed four novel constructs – green brand image, green satisfaction, green trust, and green brand equity, and explored the positive relationships between green brand equity and its three drivers – green brand image, green satisfaction, and green trust. The object of this research study was information and electronics products in Taiwan. This research employed an empirical study by use of the questionnaire survey method. The questionnaires were randomly mailed to consumers who had the experience of purchasing information and electronics products. The results showed that green brand image, green satisfaction, and green trust are positively related to green brand equity. Furthermore, the positive relationship between green brand image and green brand equity is partially mediated by green satisfaction and green trust. Hence, investing on resources to increase green brand image, green satisfaction, and green trust is helpful to enhance green brand equity. KEY WORDS: green brand image, green satisfaction, green trust, green brand equity, green marketing
Introduction In recent years, owing to the enormous amount of environmental pollution which directly connects with industrial manufacturing in the world, the society has noticed environmental issues increasing steadily (Chen, 2008a). Because of the attention of the society, more and more companies are willing to accept the environmental responsibility (Chen et al., 2006). Nowadays, environmental concern rapidly emerges as a mainstream issue for consumers because of global warming, and many companies are seeking to catch the opportunity. In turn, green marketing becomes more important for some kinds of products, such as information and electronics products (Chen et al., 2006).
However, not all the companies have enough capabilities to market their green products to their consumers. If companies want to adopt green marketing successfully, then their environmental concepts and ideas should be integrated into all aspects of marketing (Ottman, 1992). If companies can provide products or services that satisfy their customers’ environmental needs, then their customers would be more favorable to their products or services. In the advent of environmental era, companies must ﬁnd an opportunity to enhance their products’ environmental performance to strengthen their brand equities. Because of more popular environmentalism in the world, the sales of green products have dramatically increased nowadays, and, therefore, more consumers are willing to pay higher price for green products (Chen, 2008b). There are ﬁve reasons for companies to develop green marketing: compliance with environmental pressures; obtaining competitive advantage; improving corporate images; seeking new markets or opportunities; and enhancing product value. Therefore, this study argued that undertaking green marketing for companies could raise their intangible brand equities. Although the value of brand equity cannot be accounted for by current ﬁnancial accounting methods for most own branding companies (Neal and Strauss, 2008), creating a strong brand in the market is one of their main goals because it can provide beneﬁts for them, including less vulnerability to competitive marketing actions, larger margins, and greater brand extension opportunities (Delgado-Ballester and ´ Munuera-Aleman, 2005; van Riel et al., 2005). Although previous studies have paid great attention to explore the relevant issues of brand image, satisfaction, trust, and brand equity, none explored them about green or environmental issues. Therefore, this
Yu-Shan Chen the environmental problems in the world because of the impact of infamous environmental disasters and the rise of environmental protection...