Abstract
This research explores the mechanisms linking consumers’ perceptions of the environmental friendliness of service to customer loyalty. It investigates positive emotions evoked by perceptions of environmental friendliness and then links these emotions to customer satisfaction and loyalty as outcome variables. The data for testing a set of hypotheses was collected from a sample of over 150 consumers for three service industries, each. The results suggest that positive emotions in the form of “warm glow” feelings and sense of belonging are encouraged by environmental friendliness. The positive emotions have direct impacts on satisfaction, but show mixed impacts on loyalty.
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