Factors affecting Brand Loyalty on Green Product Consumption

Abstract

Objective - This study aims to investigate the importance of brand trust affecting green product repeat purchases using a statistics program with structural equation modelling (SEM) to conduct confirmation factor analysis and correlation analysis between the independent and dependent variables. Methodology/Technique – This study collected data from 820 green-product consumers in the northeast region of Thailand. Samples were recruited from 20 local department stores across 20 provinces. The study used a stratified sampling technique to stratify each province’s residents. Findings - SEM analysis shows that brand trust has a positive correlation to brand engagement and loyalty with a statistical significance value of 0.05, together with a beta coefficient value of 0.68 and 0.54. The study also found that brand engagement has positive correlation to loyalty with a statistical significance value of 0.05, together with a beta coefficient value of 0.75. These results mean that when the customer trusted the brand, it would lead to brand engagement and being big a fan of the brand. This is because the customer is unfamiliar with green products, and there are some critical factors such as price and quality. Thus, building brand trust would decrease customer apprehension. When customers feel safe, they will feel engage to the brand. Accordingly, when customers are engaged to the brand, they become loyal to the brand leading to repeat purchasers, word of mouth, and brand advocacy. Novelty – This paper contributes to the understanding on green product consumption and customer behaviour and can be used to formulate the right strategies for promoting green products, based on critical factors that influence the customer buying process. Type of Paper: Empirical. JEL Classification: M31, M39 Keywords: Brand Engagement; Brand Trust; Green Products; Loyalty; Structural Equation Modelling; Customer Buying Process; Brand Loyalty Reference to this paper should be made as follows: Khamtanet, Jitkuekul, P. (2021). Factors affecting Brand Loyalty on Green Product Consumption, Journal of Management and Marketing Review, 6(1) 16 – 23. https://doi.org/10.35609/jmmr.2021.6.1(2)