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Green Marketing - The impact on consumer-based brand equity

A quantitative study among the Swedish Generation Y in the fashion clothing industry

Written by Danial Ahmad, David Magariños

Paper category

Bachelor Thesis


Business Administration>Marketing & Sales




Thesis: Green marketing mix Developing a marketing mix is ​​part of the company's entire marketing process (Rex & Baumann, 2007). The difference between green marketing and traditional marketing is that the marketing mix is ​​green-oriented. Creating value is to achieve environmental and ethical commitments. In other words, green advertising includes environmental issues in its marketing mix (Rex & Baumann, 2007). Product development, pricing, promotion and implementation of supply chain strategies are the elements of a green marketing mix (Kinoti, 2011). When incorporating green products into its business, the company faces major changes. The market must change, the product needs to be redefined, the benefits of its use must be highlighted, and promotional activities must be adjusted in some way to make consumers understand rather than impress (Chockalingam & Isreal, 2016). The next section will introduce how to apply each element of the traditional marketing mix to green marketing strategies. 2.1.1 Green products Tan, Johnstone & Yang (2016) explained green products as products that are recognized as environmentally friendly. This can be due to a variety of reasons, such as the manufacturing process, the components or substances used in the manufacturing, and the packaging. Green products are defined by Leonidou, Katsikeas & Morgan (2013) as product-related decisions and actions, based on the sole purpose of protecting and protecting the natural environment, by maintaining energy and resource factors and reducing pollution and waste. The author further emphasized the two methods of the plan, namely, the tactical method and the strategic method. Tactical scenarios discuss how products are packaged and labelled in a more environmentally friendly way, with a strategic approach focusing on design techniques, procedures, and manufacturing processes in more sustainable practices (Leonidou, Katsikeas & Morgan, 2013). Kinoti (2011) described that green products are long-lasting, non-toxic, and are manufactured through the use of recycled materials or minimal packaging. Therefore, the green product strategy includes recycling, reducing the amount of packaging materials, sustainable raw materials, long-lasting products, and the safety of disposal and use. However, according to Chockalingam & Isreal (2016), the green attributes of environmentally friendly products alone cannot meet consumer needs. The product also needs to have additional profits such as taste, disposal or safety. According to the author, the label of the product is of great significance. The use of the environmental labeling scheme allows to inform and declare the environmental quality of green products. 2.2 Consumer-based brand equity Christodoulides, Cadogan, & Veloutsou (2015) explained the concept of consumer-based brand equity as the power of consumers’ ideas to own the brand. The author further described it as "... Brand knowledge for consumption Effects of consumers’ responses to brand marketing” (page 309) (Christodoulides, Cadogan, and Veloutsou, 2015). Authors Davcik, da Silva, and Hair (2015) clarified the concept of assets and liabilities attached to a brand, name, or symbol that increase or decrease the value provided by a company through a product or service. On the other hand, brand equity is debated as the term “asset” that can be associated with the financial sector, but the conceptual basis is based on a more subjective point of view, that is, adding and/or valuable intangible concepts to consumers (Davcik, da Silva & Hair, 2015). The concept of brand equity can be viewed as a multi-dimensional concept, and it can be seen from the literature on the concept’s steady growth that consumer-based brand equity is considered to have different dimensions (Naresh and Ravi Shekhar, 2013). Research conducted by Girard et al. (2017), the author referred to brand image, perceived quality, brand awareness and brand loyalty as dimensions related to consumer-based brand equity. Considering these dimensions (Naresh & Ravi Shekhar, 2013) also consider brand trust as a dimension, which has been considered by researchers as one of the key dimensions of the concept. However, the main focus of this research is to discover the key antecedents of the research model conducted by Davari & Strutton (2014). These antecedents belong to the consumer-based brand equity in the green marketing strategy. Namely brand loyalty, brand association, brand trust and perceived brand quality. 2.2.1 Brand loyalty According to Leckie, Nyadzayo & Johnson (2016), brand loyalty can be interpreted as "...the degree of customer attachment to a particular brand" (page 563). Researchers further clarified that brand loyalty is the consumer's commitment to brand attention and the intention to repurchase the products or services provided by the brand (Leckie, Nyadzayo & Johnson, 2016). The previous statement is consistent with the author's Yoo & Donthu (2001) point of view, they interpret brand loyalty as the tendency of consumers to be loyal to a particular brand, and display the purchase of the brand as their main choice of intention. 2.2.2 The concept of brand association is called one of the core components of consumer-based brand behavior. The term brand association is defined as " a single segment of the brand, the brand knowledge stored in the consumer's memory information. Read Less