Environmental Product Innovation and Perceived Brand Value: The Mediating Role of Ethical-Related Aspects

Abstract

Studies developed in the last two decades indicate that environmental product innovations can potentially generate competitive advantages. However, the ethical dimension, now increasingly involved in evaluations for consumer decision-making, has received less attention in academic research. Considering the above, our study investigates the mediating role of ethical aspects in the relationship between environmental product innovation and perceived brand value. To this end, we carried out a quantitative study with 336 university students who are end users of Apple and Microsoft products and services. In addition to investigating the main effect of environmental product innovations on perceived brand equity, we explore the possible mediating effects of ethical behaviors: (i) open-mindedness and (ii) concerns with privacy practices. Our results indicate that environmental product innovations need to be supported by the ethical aspects of companies to have a positive effect on perceived brand equity. Crucially, customers perceive value in environmental product innovation when they can confirm that organizations exhibit ethical correctness, particularly in the sector under study. We understand that our research provides advancement in the field of sustainable innovation. The study confirms that broader approaches, mainly centered on corporate commitments beyond environmental issues, are critical for environmental product innovations to generate perceived brand value.