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Greening the competitive advantage: antecedents and consequences of green brand equity

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Abstract

The concept of green brand equity has recently been introduced to business research. Chen (J Bus Ethics 93:307–319, 2010) found green brand equity to be positively influenced by green brand image via green satisfaction and green trust as parallel mediators in an Asian electronic product customer sample. Our research aims at replicating and extending these findings. Based on a German sample (N = 358), we replicate this mediation model in a different cultural context (a Western culture), extend it to service brands, and show that the model is valid for female as well as male consumers. Furthermore, we extend the original model by providing first empirical evidence for the relevance of green brand equity as a predictor of key economic indicators of consumer response (i.e., brand attitude, positive word-of-mouth communication). Finally, we discuss the implications of green brand equity for management as one determinant of a company’s success in a highly competitive business world.

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  1. As both constructs, brand attitude and green brand equity, are evaluative constructs concerning the same entity, that is, the brand, we used confirmatory factor analysis models to examine whether they really capture different aspects. We compared a two-factor model, with the two factors brand attitude and green brand image, to a one-factor model with just one overall evaluative factor. Analyses showed that the two-factor model fitted the data very well, χ2(19, N = 358) = 25.11, p < .157, χ2/df = 1.31, CFI = 1.00, RMSEA = .03, 90 %CIRMSEA = [.00; .06], SRMR = .03, AIC = 59.11, and substantially better than the one-factor model, χ2(20, N = 358) = 533.93, p < .001, χ2/df = 26.70, CFI = .67, RMSEA = .27, 90 %CIRMSEA = [.25; .29], SRMR = .16, AIC = 565.93. A χ2-difference test indicated a significantly worse fit of the latter model, χ2diff (1) = 508.82, p < .001. These analyses confirm that brand attitude and green brand equity are not the same concept and should be treated as separate constructs.

  2. Including sex, age, student status (yes/no), people per household, and brand category as covariates into the analyses did not change the pattern of results obtained: (non)significant effects remained (non-)significant and significant effects remained significant. Thus, our findings did not depend on the presence or absence of covariates (Simmons et al. 2011).

  3. As our analyses are based on cross-sectional data sharing common method the obtained relations might at least to some extent be a result of common method variance, rather than of associations between the underlying constructs themselves (see for review: Podsakoff et al. 2003). Therefore, within each of the reported mediation analyses this study tested each path (i.e., from predictor to criterion, from predictor to mediator, from mediator to criterion) by using the correlational marker technique (see Richardson et al. 2009) developed by Lindell and Whitney (2001) and recommended by Grant and Campbell (2007) as well as Sendjaya et al. (2008). We used the five dimensions of the BFI-10 (Rammstedt and John 2007) as marker variables which were partialed out from the tested relations. In no case was a regression weight substantially influenced in its size or significance (i.e., in no case did we observe that a previously significant association was no longer significant or vice versa), thus indicating that our mediation findings are relatively unlikely to be explained by methodological artifacts instead of actual associations between the observed constructs.

Abbreviations

BA:

Brand attitude

PWOM:

Positive word-of-mouth

WOM:

Word-of-mouth

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Correspondence to Magdalena Bekk.

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Appendix

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Green brand image

 The brand is regarded as the best benchmark of environmental commitments

Die Marke gilt als sehr hoher Maßstab im Bereich Umweltengagement

 The brand is professional about environmental reputation

Die Marke genießt im Umweltschutz ein professionelles Ansehen

 The brand is successful about environmental performance

Die Marke ist erfolgreich in ihrem Einsatz für die Umwelt

 The brand is well established about environmental concern

Die Marke hat sich in Umweltangelegenheiten einen guten Namen gemacht

 The brand is trustworthy about environmental promises

Die Marke ist vertrauenswürdig hinsichtlich ihrer Versprechen zum Umweltschutz

Green satisfaction

 You are happy about the decision to choose this brand because of its environmental commitments

Sie glauben, dass es aufgrund der Leistungen die diese Marke für die Umwelt erbringt richtig ist, Angebote, Produkte oder Dienstleistungen von ihr zu kaufen oder zu nutzen

 You believe that it is a right thing to purchase this brand because of its environmental performance

Im Großen und Ganzen sind Sie aufgrund der Umweltfreundlichkeit dieser Marke froh, Angebote, Produkte oder Dienstleistungen von ihr zu kaufen oder zu nutzen

 Overall, you are glad to buy this brand because it is environmental friendly

Sie sind zufrieden mit der Entscheidung diese Marke aufgrund ihres Umweltengagements zu wählen

 Overall, you are satisfied with this brand because of its environmental concern

Im Großen und Ganzen sind Sie mit dieser Marke zufrieden, weil ihr Umweltangelegenheiten ein Anliegen sind

Green trust

 You feel that this brand’s environmental commitments are generally reliable

Sie haben den Eindruck, dass das Umweltengagement dieser Marke generell glaubwürdig ist

 You feel that this brand’s environmental performance is generally dependable

Sie haben das Gefühl, dass die Marke in ihrem Einsatz für die Umwelt generell verlässlich ist

 You feel that this brand’s environmental argument is generally trustworthy

Sie glauben, dass das Bekenntnis dieser Marke für die Umwelt insgesamt vertrauenswürdig ist

 This brand’s environmental concern meets your expectations

Das ökologische Anliegen dieser Marke entspricht Ihren Erwartungen

 This brand keeps promises and commitments for environmental protection

Diese Marke hält ihre Versprechen und ihre Zusagen für den Umweltschutz

Green Brand Equity

 It makes sense to buy this brand instead of other brands because of its environmental commitments, even if they are the same

Es ist sinnvoll, diese Marke aufgrund ihres Umweltengagements anstelle von Alternativmarken zu kaufen oder zu bevorzugen, selbst wenn diese gleich sind

 Even if another brand has the same environmental features as this brand, you would prefer to buy this brand

Selbst wenn eine Alternativmarke die gleichen ökologischen Eigenschaften wie diese Marke besäße, würden Sie es vorziehen, diese Marke zu kaufen oder ihr Angebot zu nutzen

 If there is another brand’s environmental performance as good as this brand’s, you prefer to buy this brand

Auch dann wenn es eine Alternativmarke mit den gleichen Leistungen für die Umwelt wie jene dieser Marke gibt, würden Sie es vorziehen, diese Marke zu kaufen oder ihr Angebot zu nutzen

 If the environmental concern of another brand is not different from that of this brand in any way, it seems smarter to purchase this brand

Auch wenn sich das ökologische Anliegen einer Alternativmarke in keiner Art und Weise von jenem dieser Marke unterscheidet, scheint es klüger zu sein, diese Marke zu kaufen oder ihr Angebot zu nutzen

Brand attitude

 Negative/positive

Negativ/positiv

 Unpleasant/pleasant

Unangenehm/angenehm

 Good/bad

Schlecht/gut

 Sympathetic/unsympathetic

Sympathisch/unsympathisch

Positive word-of-mouth communication

 I mention this service organization to others quite frequently

Ich erwähne diese Marke gegenüber anderen oft positiv

 I seldom do more than mention the name of this service organization to others

Ich lasse keine Gelegenheit aus, anderen von dieser Marke zu erzählen

 I have only good things to say about this service organization

Ich kann nur Gutes über diese Marke sagen

 I am proud to tell others that I use this service organization

Ich bin stolz anderen erzählen zu können, dass ich Angebote, Produkte oder Dienstleistungen dieser Marke kaufe oder nutze

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Bekk, M., Spörrle, M., Hedjasie, R. et al. Greening the competitive advantage: antecedents and consequences of green brand equity. Qual Quant 50, 1727–1746 (2016). https://doi.org/10.1007/s11135-015-0232-y

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