Abstract

The purpose of the study is to develop an original framework to explore the effects of brand crisis on green purchase intentions and willingness to pay more. This study composes of seven original concepts, which are perceived brand crisis, green brand image, green trust, green brand equity, green perceived value, green purchase intentions and willingness to pay more to develop an integrated model. For this reason, an online survey was carried out in testing the model that includes questions measuring the effects of these variables. Smart PLS structural equation modelling is applied to verify the research framework. A total of 504 questionnaires were collected from Turkish consumers living in Turkey. According to the findings acquired from the structural equation modelling, there is an impact of the perceived brand crisis on green brand image, green trust, green brand equity and green perceived value. Consequently, green brand equity and green perceived value except for green brand image and green trust influence the green purchase intention. Moreover, green purchase intention affects willingness to pay more. Existing studies have shown that perceived brand crisis affects the brand equity, brand trust, brand image, perceived value and purchase intentions. However, there is not any research to shed light on the impact of perceived brand crisis on green brand equity, green brand image, green trust, green perceived value, green purchase intention and willingness to pay more. Therefore, this paper develops a research framework to fill the research gap.

Highlights

  • A German car maker had installed the defeat software that produces up to 40 times more pollution than allowed

  • According to the findings acquired from the structural equation modelling, there is an impact of the perceived brand crisis on green brand image, green trust, green brand equity and green perceived value

  • The carbon emission crisis of the company X was used as a case. Considering these points, this study aims to contribute to literature by investigating whether brand crisis affects the green brand image, green trust, green brand equity, green perceived value; and whether these four concepts influence green purchase intention and willingness to pay premium

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Summary

Introduction

A German car maker had installed the defeat software that produces up to 40 times more pollution than allowed. The car maker intentionally installed turbocharged direct injection diesel engines to activate certain emission controls only during laboratory emission testing. The software switches out of this test mode. This software is defined as „defeat device‟ by Clean Act Air. The car maker put this programming in about eleven million cars worldwide in its 2009-2015 models. Authorities in many countries were highly concerned about cheat device in diesel cars and they launched investigations into the crisis. It is a clear fact that the company has been negatively affected by this crisis in terms of sales, image, trust and so on (The Guardian, 2015)

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