Consumer perception of brand equity based on environmental sustainability – development and validation of a scale

Abstract

Brands gradually became the core dimension and strategic asset of branding for organizations of all sizes, and today many companies adopt various forms of green marketing activities as part of their strategies. The objective of this study was to develop and validate the psychometric properties of precision and validity of a scale for assessing brand equity based on environmental sustainability. The scale was validated by adopting the standards described in APA Standard. Eight companies were selected from those developing their sustainable business as samples for validation tests. Data were applied to 263 potential consumers. A scale with 2 items was built and validated, divided into four dimensions: Brand quality perception BQP (6 questions); Strategic brand positioning SBP (10 questions); Willingness to buy WTB (3 questions) and Retail Innovation RI (3 questions). The instrument items showed good internal consistency regarding their domains. Matrix is interpreted in 4 dimensions. Factorial analysis assumed few cross-loadings, corroborating the initial assumptions of the adapted instruments. The instrument obtained good internal fit indices and external measures. Finally, Item response theory (IRT) analysis showed no floor or ceiling effect; however, for the DIF data, the scale invariably works for older and younger people for almost all items except RI 04 item. This article fills the gap in literature by developing a scale to assess consumer perception of brand equity and environmental sustainability, improving the understanding of the customer experience with brand equity, exploring various dimensions of consumer perception of sustainable brands.