Abstract

This study aims to investigate the impact of desired self-identity, green perceived value and altruistic values on brand loyalty towards green brands (i.e., electric and hybrid cars) and the mediating role of customer engagement behavior on these relationships. Further, this study proposes that greenwashing perception, which can be defined as consumers perceiving organizations to be dishonest about their environmental claims, moderates the indirect effect of desired self-identity, green perceived value and altruistic values on brand loyalty via customer engagement behavior. Data were collected from a nationwide online survey of 170 customers who have purchased and used electric and hybrid cars. Partial least squares structural equation modeling (PLS-SEM) using Smart-PLS and PROCESS were employed to test the hypotheses. This study’s findings indicate that desired self-identity, green perceived value and altruistic values positively influence consumer engagement behavior with the focal green car brands. Further, the mediating effect of customer engagement behavior on brand loyalty was generally found. Additionally, greenwashing perception was found to moderate the indirect effect of desired self-identity and altruistic values on brand loyalty via customer engagement behavior. The indirect effect of desired self-identity and altruistic values on brand loyalty via consumer engagement behavior was stronger at lower levels of greenwashing perception than at higher levels. This study offers key managerial implications on how green brands can promote customer engagement behavior and brand loyalty.

Highlights

  • Accepted: 22 July 2021Ambient air pollution causes immense harm to environmental health and has been attributed to approximately 3.5 million premature deaths from 2017, with the transportation sector considered one of the worst contributors to this global issue [1]

  • With the above research backdrop, this current study aims to answer the following research questions: (i) what are the key internal drivers of customer engagement behavior (CEB) and brand loyalty of green brands? and (ii) how does negative greenwashing perception moderate the indirect effects of the key internal drivers on brand loyalty through CEB?

  • Our findings suggest CEB mediates the relationship between desired self-identity, green perceived value and altruistic values on brand loyalty with the focal green brands

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Summary

Introduction

Ambient air pollution causes immense harm to environmental health and has been attributed to approximately 3.5 million premature deaths from 2017, with the transportation sector considered one of the worst contributors to this global issue [1]. Consumers are demonstrating an increasing awareness of the need for a cleaner environment and how their consumption habits are causing environmental degradation [2]. Consumers are showing a greater willingness to adopt sustainable consumption behaviors [2]. The study of consumer behavior relating to sustainable consumption has contributed to a better understanding of how individuals make purchase-related decisions concerning green brands. Research has suggested that consumer environmental concern is a critical motivating factor for green product consumption [4,5]

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