Effects of restaurant green practices on brand equity formation: Do green practices really matter?

Abstract

This study examines the effects of green practices at restaurants on customer-based brand equity formation. A survey of 512 American diners showed that implementing two aspects of green practices, food focused and environmentally focused, influenced customer perceptions of green brand image and behavioral intentions, whereas the effects of green practices on perceived quality were not significant. The relative impact of the two aspects of green practices differs by restaurant type. In upscale casual dining restaurants, green practices focused on foods were more effective in enhancing a green brand image and behavioral intentions as compared to those with an environmental focus. On the other hand, for casual dining customers the effects of green practices with an environmental focus were more convincing in terms of improving a restaurant's green brand image and behavioral intentions as compared to food focused initiatives. In relation to self-perception, the results indicated that diners with high health and environmental-consciousness responded more positively to restaurant green practices than those with a low self-perception of health and environmental-consciousness.