Examining Loyalty and Situational Value in Green Retail and Service Establishments

Abstract

This research sheds light on how loyalty and situational value can enhance consumers ’ willingness to pay a higher price (WTPHP) for green products. While loyalty is a function of the individual characteristics of a certain Consumer, which match the characteristics of an Object, “situational” value is a function of a certain Consumer, a certain Object, and a certain Situation. Across two studies, we show that (1) loyalty has an effect on WTPHP that is mediated by reason and (2) situational value has an effect on WTPHP mediated by both emotion and reason. We conclude with discussions and managerial implications.