Abstract

As consumer interest in organic products continues to grow, brands are increasingly adding organic variants to their product lines. However, consumer evaluations of these actions are not straightforward and differ for brands with various associations or within different product contexts. Previous research has shown that products with credence attributes, such as organic products, are often judged by brand name and consumers’ existing brand associations. The current study adds to previous work on brand equity and brand associations by explicitly considering the context and characteristics of these branded organic products. First, a pretest determined the existing brands’ corporate social responsibility (CSR) and corporate ability (CA) associations. Next, an online experiment tested consumers’ perceptions of brand equity, consumers’ trust in the brands and consumers’ purchase intentions, which were analyzed using a fully parallel, multiple-mediator process model with the experimental conditions as independent variables. The results show that brand equity increases most when a brand associated with both CA and CSR introduces an organic product. In addition, consumers trust this brand more compared to brands that are less strongly associated with CSR. Moreover, the intention to purchase organic products increases as brand equity increases, but the intention to purchase organic products does not increase as trust increases. Based on these results, we conclude that brands aiming to increase their value to positively affect consumers’ purchase intentions of their organic products benefit most when they are highly associated with both CSR and CA.

Highlights

  • Today, consumers are increasingly considering the environmental and ethical aspects of products when making purchasing decisions (Andorfer & Liebe, 2012; Bartels & Onwezen, 2014; Carrington et al, 2014)

  • The consumers reported higher levels of awareness when confronted with an organic product of a brand with high corporate social responsibility (CSR) (H1a) but did not report lower levels of awareness when confronted with an organic product of a brand with high corporate ability (CA) (H2a)

  • We conclude the following: First, the more positively a consumer associates a brand with both CA and CSR associations, the higher consumers’ awareness, perceptions of quality and loyalty will be when confronted with an organic product from that brand

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Summary

Introduction

Consumers are increasingly considering the environmental and ethical aspects of products when making purchasing decisions (Andorfer & Liebe, 2012; Bartels & Onwezen, 2014; Carrington et al, 2014). Consumers today are more likely to purchase from firms that engage in corporate social responsibility (CSR) actions than those that do not, especially when consumers perceive that the product aligns with their perceptions of the company (Sen & Bhattacharya, 2001; Lee et al, 2012) In response to this heightened consumer awareness more brands are developing sustainable products and highlighting the sustainability of their products (Singh et al, 2012). These reports have resulted in consumers becoming increasingly cautious of “greenwashing” (Polonsky & Rosenberger, 2001; Siano et al, 2017; Vlachos et al, 2009), which refers to the discrepancy between “talk” and “action” that occurs when brands use marketing to deceive consumers into believing that they prioritize CSR and/or sustainable products in order to capitalize on the potential benefits of having a “green” image (Elving, 2013; Siano et al, 2017)

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