GREEN BRAND

How Powerful Is The Effect Of ''Green Brand'' On Customer Loyalty?

Abstract

The reason of this paper is to analyse, present and potential buyer insights, buy intent and parent emblem evaluation due to green emblem line and class additions by marketers of established (non-green) emblems for goods with high vs. reduced seen ecological impact. The paper investigates answers to online reviews by 602 pet-owners at communal networking websites. The quasi-experiment advised seen ecological influence of centre merchandise, parent-brand client rank, and green elongation scheme (line vs. category). Brand elongation evaluation, buy intent, and parent emblem evaluation were then measured. Results propose that buyers are more expected to buy green additions of goods with high seen ecological influence and that present buyers favour green line additions to green class extensions. Both have alike reciprocal influence on parent emblem evaluation amidst present consumers. The facts and numbers have external validity but need the command likely in lab experiments. Future study should replicate the study in other merchandise categories. Managers of established emblems should address emblem additions of goods affiliated with high ecological influence only. This paper examines managerial significances of line vs. class elongation schemes for green emblem additions of established brands.

Table of Contents

Abstract2

Table of Contents3

CHAPTER I5

Introduction5

Research Hypothesis7

Research Objectives8

CHAPTER II11

Review of Related Literature11

Conceptual background and hypotheses11

Categorization and schema processes11

Brand Extension12

Brand personality as a measure of core brand evaluations15

Extension fit and brand personality18

Core brand quality and brand personality20

Brand familiarity (covariate)20

Adoption drivers of eco-friendly products21

The role of perceived fit on brand extension evaluations23

Influence of parent brand user status on evaluation of green brand extensions25

Reciprocal impact of green brand extensions on parent brand26

Social networks and the green consumer28

CHAPTER III30

Research Methodology30

Empirical context and method30

Study design31

Survey instrument and measures31

CHAPTER IV34

Data analysis and results34

Sample and descriptive statistics34

Data checks34

Hypothesis tests35

CHAPTER V39

Conclusion39

Reference45

Figures and Tables51

CHAPTER I

Introduction

The past decade has witnessed an explosion of commercial and organizational research activity related to sustainability and green initiatives. Research from the Natural Marketing Institute (NMI) estimates the market size of the environmentally-sustainable or green products to reach $420 billion by 2010 (Bonini and Oppenheim? 2008). While environmental associations with existing brands has become a generally accepted way of enhancing brand equity and gaining competitive advantage (Montoro-Rios et al.? 2008)? current research shows that a growing number of consumers are distrustful of firms “green-washing” efforts? including adding environmental claims or labels to existing products and overuse of such terms and descriptions as “environmentally friendly” and “natural” (Karna et al.? 2001). A 2007 study by TerraChoice Environmental Marketing Inc (“The Six Sins of Greenwashing”) examined 1?735 environmental product claims and found that all but one were misleading or false (Bonini and Oppenheim? 2008).

Background of the Study

As an increasing number of organizations aspire to “go green”? companies are challenged with distinguishing their products and services in an increasingly crowded green marketplace. Firms with established brands are increasingly leveraging the equity associated with their core products to launch green brand extensions? either as line extensions or category extensions. Green line extensions involve developing a sub-brand within the same product ...