Determinants of green purchase intention in the banking sector

Abstract

The worldwide climate emergency has made it imperative for financial institutions to adopt a proactive attitude towards sustainable business practices. However, little has been done to develop an integrated framework that would enhance the purchase intention for banks using green initiatives and thus facilitate the green economy. This study summarizes the literature on four constructs – green brand image, green brand equity, green brand trust and green purchase intention – into a framework, has developed five hypotheses, and validated them empirically using structural equation modelling in the Indian Banking sector, thus addressing a very important research gap. The findings reveal a positive relationship between four constructs in the framework with a partial mediating effect of green trust between green brand image and green brand equity. The findings of the study have pertinent theoretical, managerial and social relevance and will benefit researchers, policy makers and stakeholders worldwide to design green banking strategies for a resource-efficient future.