Pay-premium for green brands: evidence from an emerging country

2020 ◽  
Vol 11 (3) ◽  
pp. 219-232
Author(s):  
Ulun Akturan
Keyword(s):  
Willingness To Pay ◽  
Brand Equity ◽  
Risk Perceptions ◽  
Structural Equation ◽  
Financial Risk ◽  
Survey Method ◽  
Green Products ◽  
Content Type ◽  
Performance Risk ◽  
Emerging Country

Purpose This study aims to examine how green branding strategies affect pay-premium behaviour of consumers for high- vs low-involvement green products in an emerging country. Design/methodology/approach Data were collected from 500 consumers by survey method, and structural equation modelling was run to analyse the hypotheses. Findings Consequently, it was found that for involvement level consumers’ pay-premium behaviour was affected indirectly by perceived quality, and directly by green brand equity and brand credibility. Moreover, in addition to those factors, for low-involvement green products, performance risk and financial risk have an impact on willingness to pay more; however, for high-involvement green products, only performance risk influences the pay more behaviour of consumers. Research limitations/implications In the research, two involvement levels and two brands were used. Brand names in particular may have caused a bias in the measurement. And the findings are limited by the sample, which includes respondents from an emerging country. Practical implications Managers should focus on green brand equity, brand quality and credibility to support willingness to pay more for green products. Moreover, they should monitor performance risk and financial risk perceptions, which may differ according to the involvement levels. Originality/value There is no other study, at least to the best of the author’s knowledge, testing the effects of brand-related factors on consumers’ willingness to pay-premium for green brands.

Indian consumers’ risk perception in buying green products: the case of LED light bulbs

2018 ◽  
Vol 30 (4) ◽  
pp. 927-951 ◽  
Author(s):  
Sujit Kumar Ray ◽  
Sangeeta Sahney
Keyword(s):  
Risk Perception ◽  
Financial Risk ◽  
Social Risk ◽  
Green Products ◽  
Content Type ◽  
Performance Risk ◽  
Indian Consumers ◽  
And Performance ◽  
Psychological Risk ◽  
Overall Risk

PurposeThe purpose of this paper is to examine how the various perceived risk facets such as financial risk, performance risk, psychological risk, social risk, and physical risk influence the Indian consumers’ perceived overall risk during the purchase of green products such as energy-efficient LED light bulbs.Design/methodology/approachA self-administered questionnaire comprising a total of 29 items was employed over a sample of 272 respondents. The structural equation modeling using partial least squares was used for data analysis.FindingsPsychological risk emerged as the most influential of the various risk facets in affecting perceived overall risk. Financial, physical, and performance risks emerged as the second, third, and fourth most influential risk facets, respectively, which affect the perceived overall risk. Surprisingly, social risk did not emerge as an influential facet when it comes to affecting perceived overall risk. Further, psychological and financial risks appeared to have a positive medium-level influence on the perceived overall risk, whereas physical and performance risks appeared to have a positive weak influence on the perceived overall risks. The influence of financial risk on the perceived overall risk was found to be partially mediated by performance risk.Originality/valueThe study is unique in the sense that it reflects the risk perception of potential consumers in one of the largest emerging markets of the world, when it comes to purchase of green products.

How does greenwashing affect green branding equity and purchase intention? An empirical research

2018 ◽  
Vol 36 (7) ◽  
pp. 809-824 ◽  
Author(s):  
Ulun Akturan
Keyword(s):  
Brand Equity ◽  
Purchase Intention ◽  
Structural Equation ◽  
Equation Modeling ◽  
Survey Method ◽  
Strong Impact ◽  
Brand Associations ◽  
Content Type ◽  
Brand Credibility ◽  
The Relationship

Purpose The purpose of this paper is to explore the relationship among greenwashing, green brand equity, brand credibility, green brand associations and purchase intention. Design/methodology/approach As an object to study, two brands were chosen: a high-involved brand and a low-involved brand. Data were collected from 500 consumers by survey method, and structural equation modeling was run to test the research hypotheses. Findings As a result, it was found that green brand associations and brand credibility positively affect green brand equity, and green brand equity has a positive and strong impact on purchase intention of consumers. In addition to that greenwashing negatively affects green brand associations and brand credibility, and therefore, indirectly influence green brand equity and purchase intention. Research limitations/implications Previous studies conceptualize greenwashing and examine its effects on company performance and skepticism. This study is a first attempt to explore the effects of greenwashing on green branding strategies. Practical implications Managers should be aware of that greenwashing not only negatively affects purchase intention but also generates negative outcomes for the relationship with the brands. Originality/value There is no other study, at least to the author’s knowledge, testing the effects of greenwashing on green brand perceptions and green purchase intention.

scholarly journals Pro-environmental behaviour, locus of control and willingness to pay for environmental friendly products

2015 ◽  
Vol 33 (1) ◽  
pp. 67-89 ◽  
Author(s):  
Rohit H Trivedi ◽  
Jayesh D Patel ◽  
Jignasa R Savalia
Keyword(s):  
Locus Of Control ◽  
Willingness To Pay ◽  
Structural Equation ◽  
Target Audience ◽  
The Body ◽  
Green Products ◽  
Content Type ◽  
Wide Range ◽  
Indian Consumers ◽  
Relevant Variables

Purpose – Marketers have realized the importance of assessing consumers’ willingness to pay (WTP) before introducing green products across different target audience. The purpose of this paper is to examine the relative influence of consumers’ pro-environmental behaviours (PEBs) and environmental locus of control (ELOC) on their WTP for green products. Design/methodology/approach – The study sample consisted of 256 Indian consumers which were recruited with the help of convenience sampling. A structured questionnaire was administered with scales that were well established and that have been used in previous research. Data were analysed with the help of CFA and structural equation modelling to test the relationship of ELOC and PEB anon WTP. Second, clustering respondents according to their PEB and ELOC has been done to find its differential effect on WTP with the help of multivariate analysis of variance (MANOVA). Findings – Findings of the study highlight that WTP for green products is significantly predicted by two variables which are in following order: PEB and ELOC. Results of cluster analysis and MANOVA revealed that WTP differ significantly with the level of intensity of ELOC and PEB among Indian consumers. Research limitations/implications – It advances the body of knowledge centred on the interplay of the PEB and ELOC to WTP for green products. Additional work is clearly required to consider the wide range of potentially relevant variables like brand image, prices, advertisements and product quality that ensures the generalizability of findings. Practical implications – The hypothesis framed, tested and inferences made can form a basis of extremely valued toolkit for those green marketers who take caution when planning their marketing and communications strategies to stimulate the WTP by conveying a reason and motivation to act environmentally. Originality/value – In this study, an understanding of WTP for green products is developed. The much required knowledge gap in terms of interplay of ELOC and PEB on WTP has been filled with the help of the present study. It has been identified that those consumer groups who displays higher PEB and ELOC forms the primary target audience for green product marketer.

MNCs and religious influences in global markets

2017 ◽  
Vol 34 (6) ◽  
pp. 885-908 ◽  
Author(s):  
Muhammad Mohsin Butt ◽  
Susan Rose ◽  
Stephen Wilkins ◽  
Junaid Ul Haq
Keyword(s):  
Multinational Corporations ◽  
Brand Equity ◽  
Religious Identity ◽  
Structural Equation ◽  
Strong Predictor ◽  
Total Sample ◽  
Survey Method ◽  
Choice Behaviour ◽  
Holistic Model ◽  
Content Type

Purpose Multinational corporations (MNCs) that want to compete in markets worldwide should not underestimate the influences of religion on consumer demand. Almost one quarter of the world’s population is Muslim so it is important for MNCs to get into the Muslim mind set when operating in countries where Islam has a large influence. The purpose of this paper is to assess the extent to which consumer-based brand equity in a religious market results from the psychological and behavioural characteristics of consumers rather than from product characteristics. Design/methodology/approach A quantitative survey method was adopted, using a total sample of 551 Muslim consumers in Malaysia and Pakistan. A holistic model conceptualising three potential psychological and behavioural predictors of consumer-based halal brand equity (CBHBE) was created and then tested using structural equation modelling. Findings The strength of an individual’s religious identity was found to be a strong predictor of consumer halal choice behaviour and perceived self-expressive religious benefits. Consumers’ halal choice behaviour and perceived self-expressive benefits directly predict CBHBE. Moreover, consumer halal choice behaviour partially mediates the relationship between self-expressive benefits and CBHBE. Practical implications The authors conclude that firms targeting Muslim consumers can maximise CBHBE by focussing their marketing strategies on the three psychological and behavioural constructs identified in the model. For example, by using halal certification logos and providing convincing information about the halalness of their brand, businesses can facilitate Muslim consumers’ search processes in relation to their choice behaviour. Originality/value The study contributes to the existing international branding literature in two main ways. First, it introduces and defines the concept of CBHBE. Second, it identifies and empirically validates the important psychological and behavioural predictors of CBHBE.

Uncertainty and subjective task complexity in the information-seeking behaviour of lawyers

2017 ◽  
Vol 66 (4/5) ◽  
pp. 266-281
Author(s):  
Nafisat Toyin Adewale ◽  
Yushiana Mansor ◽  
Muhammad-Bashir Owolabi Yusuf ◽  
Ahmeed Onikosi
Keyword(s):  
Information Seeking ◽  
Structural Equation ◽  
Task Complexity ◽  
Survey Method ◽  
Law Firms ◽  
Content Type ◽  
Minimum Requirement ◽  
Educational Qualification ◽  
Populated State ◽  
The Relationship

Purpose This study investigates the moderating effects of age, experience and educational qualification on the relationship between uncertainty and subjective task complexity among lawyers working in private law firms in Lagos State, Nigeria. Design/methodology/approach A survey method was adopted and data were gathered using questionnaires. The analysis was carried out based on partial least squares structural equation modelling using SmartPLS 2.0 M3 software. Findings Results showed that the effect of uncertainty on subjective task complexity is significantly moderated by age, educational attainment, experience of the lawyers under study. Research limitations/implications Although data were collected in the most populated state and commercial hub of Nigeria, generalisation based on findings may still need to be made with caution. Practical implications Attainment of higher educational qualification is highly important for lawyers even though the minimum requirement to practice as a lawyer is a degree. Lawyers with higher degrees (LLM and PhD) had less uncertainty and perceived their tasks to be less complex compared to their counterparts who had the first degree (LLB). Originality/value The demographic profile of professionals (age, education and experience) has proven to have an impact on their perception about task complexity as determined by uncertainty as found in this study.

A strategy tripod perspective on merger effectiveness in the higher education industry: the mediating role of future foresight

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zahraa Sameer Sajwani ◽  
Joe Hazzam ◽  
Abdelmounaim Lahrech ◽  
Muna Alnuaimi
Keyword(s):  
Higher Education ◽  
Structural Equation ◽  
Government Support ◽  
Equation Modeling ◽  
Survey Method ◽  
Content Type ◽  
Mediating Role ◽  
Education Industry ◽  
Higher Education Industry

PurposeThe purpose of the study is to investigate the role of the strategy tripod premises, mediated by future foresight and its effect on merger effectiveness in the higher education industry.Design/methodology/approachA quantitative survey method was implemented, with the data provided by senior managers of 14 universities that went through a merger from the years 2013–2016. The proposed model was tested using partial least squares (PLS) of structural equation modeling (SEM).FindingsThe results indicate that government support, competitive intensity and knowledge creation capability relate positivity to merger effectiveness, and these relationships are mediated by future foresight competence.Originality/valueThe study provides a better understanding of merger effectiveness in the higher education industry by identifying the role of future foresight competence in the application of strategy tripod and its contribution on merger effectiveness. Results indicate that future foresight competence contributes to the merger effectiveness and enables the effective implementation of the strategy tripod dimensions in higher education mergers.

Individual social entrepreneurial orientation in Brazil: measurement and the predictive role of personal values and attitude toward social change

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Márcia Maria Garçon ◽  
Vânia Maria Jorge Nassif ◽  
Tiago Jessé Souza de Lima
Keyword(s):  
Social Change ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Personal Values ◽  
Explanatory Power ◽  
Equation Modeling ◽  
Survey Method ◽  
Social Entrepreneurs ◽  
Content Type ◽  
Self Transcendence

Purpose The purpose of this paper is to develop and test a model that aims to explain individual entrepreneurial orientation (IEO) focused on the context of social entrepreneurship (SE) (Social-IEO) by considering the personal values and attitude toward social change through direct and indirect effects. To achieve this purpose, the authors created and validated a scale to measure Social-IEO. Design/methodology/approach The paper uses scale construction techniques (DeVellis, 2016) and survey method for data collection. As such, this study was conducted by considering a sample of 198 social entrepreneurs. Multivariate data analysis and structural equation modeling are used to validate the theoretical model. Findings The Social-IEO scale was validated and shows to adequately encompass and measure the construct. The proposed model has predictive relevance and explains 45% of Social-IEO. Findings suggest that self-transcendence value has no direct effect on Social-IEO. Additionally, conservation and self-promotion values do not have a negative correlation with Social-IEO. Finally, attitude of social change has a strong explanatory power to Social-IEO. The findings offer important theoretical and practical implications for the field of entrepreneurship education and entrepreneurial behavior. Originality/value The definition of a specific concept of IEO applied to the context of SE contributes to the correct understanding of its dimensions, measurement and management. This eliminates a gap in studies and contributes to expand and strengthen research. It also provides an original empirical approach, as the method used to measure IEO in a reflective way is unusual in previous studies.

Consumer behaviour towards willingness to pay for Halal products

2019 ◽  
Vol 121 (2) ◽  
pp. 492-504 ◽  
Author(s):  
Waqar Ahmed ◽  
Arsalan Najmi ◽  
Hafiz Muhammad Faizan ◽  
Shaharyar Ahmed
Keyword(s):  
Willingness To Pay ◽  
Structural Equation ◽  
Quantitative Research ◽  
Reasoned Action ◽  
Raw Material ◽  
Equation Modeling ◽  
Muslim Country ◽  
Policy Makers ◽  
Content Type ◽  
Factors Affecting

PurposeThe purpose of this paper is to empirically analyze the factors affecting Muslim consumers’ willingness to pay (WTP) for Halal food, products and operations by employing theory of reasoned action.Design/methodology/approachThis study has used quantitative research methodology and collected data from 350 questionnaires from a densely populated city of Pakistan. Partial least squares-structural equation modeling was used to analyze the data.FindingsThe results show that the concerns about Halal, religiosity, perception of usefulness of Halal and product ingredients have a significant impact on WTP for Halal foods, while attitude has an insignificant impact on WTP. Moreover, the extent of demand for Halal certification is significantly affected by WTP.Originality/valueThe study highlighted the concerns of the Muslim consumers with respect to Halalness of the products and operations despite living in a Muslim country. It is recommended that the policy makers, food authorities and health institutions should conduct regular inspections of foods, products and producers’/manufacturers’ operations to ensure that all the procedures from manufacturing of the raw material till the finished goods follow Islamic principles to make them completely Halal.

Hotel-like hospital rooms’ impact on patient well-being and willingness to pay

2018 ◽  
Vol 30 (10) ◽  
pp. 3006-3025 ◽  
Author(s):  
Courtney Suess ◽  
Makarand Amrish Mody
Keyword(s):  
Social Support ◽  
Willingness To Pay ◽  
Structural Equation ◽  
Well Being ◽  
Equation Modeling ◽  
Sense Of Control ◽  
Content Type ◽  
Hospital Room ◽  
Healthcare Settings ◽  
Supportive Design

Purpose The study aims to examine how features that foster a sense of control, create positive distractions and provide access to social support influence patients’ well-being and, subsequently, their likelihood to choose hotel-like hospital rooms and their willingness to pay higher out-of-pocket expenses for such rooms. While there is increasing evidence to suggest the importance of the provision of hospitality in healthcare settings, research on these developments remains under-represented, particularly in the hospitality literature. In response, the present study builds on Ulrich’s (1991) theory of supportive design to examine patient responses to hotel-like features in a hospital room. Design/methodology/approach Using data from a survey of 406 patients, the authors used structural equation modeling to test the model. Findings Consistent with supportive design principles, the infusion of hotel-like features that foster a sense of control for patients, create positive distractions and provide access to social support was found to positively impact patients’ physical and mental well-being, which, in turn, increased their likelihood to choose a hospital room with hotel-like features and their willingness to pay for such rooms. Practical Implications Findings attest to the need for healthcare providers to make the necessary investment in hotel-like features and to leverage the communicative power of these environmental cues. Social support in the form of hospitality-trained and certified healthcare staff was found to be the most important hotel-like feature, which also presents significant commercial opportunities for hospitality companies and professionals. Originality Value The study represents one of the first attempts to empirically develop a structured model to examine the infusion of hospitality into healthcare. It provides researchers with a theoretically supported framework for future inquiry into the domain. It also makes a significant contribution to advancing the research on patient well-being in healthcare settings and demonstrates the importance of hospitality to such endeavors.

scholarly journals Examining the ParticipACTION brand using the brand equity pyramid

2018 ◽  
Vol 8 (4) ◽  
pp. 378-396 ◽  
Author(s):  
Alexander Lithopoulos ◽  
Peter A. Dacin ◽  
Tanya R. Berry ◽  
Guy Faulkner ◽  
Norm O’Reilly ◽  
...  
Keyword(s):  
Factor Analysis ◽  
Confirmatory Factor Analysis ◽  
Exploratory Factor Analysis ◽  
Brand Equity ◽  
Structural Equation ◽  
Structural Equation Models ◽  
Equation Modeling ◽  
Content Type ◽  
Activity Promotion ◽  
Confirmatory Factor

Purpose The brand equity pyramid is a theory that explains how people develop loyalty and an attachment to a brand. The purpose of this study is to test whether the predictions made by the theory hold when applied to the brand of ParticipACTION, a Canadian non-profit organization that promotes active living. A secondary objective was to test whether this theory predicted intentions to be more physically active. Design/methodology/approach A research agency conducted a cross-sectional, online brand health survey on behalf of ParticipACTION. Exploratory factor analysis and confirmatory factor analysis established the factor structure. Structural equation modeling was used to test the hypothesized model. Findings A nationally representative sample of Canadian adults (N = 1,191) completed the survey. Exploratory factor analysis and confirmatory factor analysis supported a hypothesized five-factor brand equity framework (i.e. brand identity, brand meaning, brand responses, brand resonance and intentions). A series of structural equation models also provided support for the hypothesized relationships between the variables. Practical implications Though preliminary, the results provide a guide for understanding the branding process in the activity-promotion context. The constructs identified as being influential in this process can be targeted by activity-promotion organizations to improve brand strength. A strong organizational brand could augment activity-promotion interventions. A strong brand may also help the organization better compete against other brands promoting messages that are antithetical to their own. Originality/value This is the first study to test the brand equity pyramid using an activity-promotion brand. Results demonstrate that the brand equity pyramid may be useful in this context.

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