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Giving green a second thought: Modeling the value retention of green products in the secondary market

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  • Majid, Kashef Abdul
  • Russell, Cristel Antonia

Abstract

Demand for green products continues to grow. This research examines green products’ retention of value and whether new green brands differ from green brand extensions in their ability to retain value amidst technological innovations. Modeling of data from the used car market between 2004 and 2011 shows that hybrid (i.e., green) vehicles lose value faster than their non-hybrid counterparts. However, pure green brands (such as the Prius), whose ability to express greenness is more salient, lose value at a slower rate than green brand extensions. Compared with brand extensions, pure green brands are also less vulnerable to the threat of obsolescence from technological innovations (introduction of fully electric vehicles). Implications for the management and marketing of green product offerings to extract maximum value for firms and consumers are discussed and suggestions for future research are proposed.

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  • Majid, Kashef Abdul & Russell, Cristel Antonia, 2015. "Giving green a second thought: Modeling the value retention of green products in the secondary market," Journal of Business Research, Elsevier, vol. 68(5), pages 994-1002.
    • Handle: RePEc:eee:jbrese:v:68:y:2015:i:5:p:994-1002
    DOI: 10.1016/j.jbusres.2014.10.001
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    5. Yu, Ellen Pei-yi & Luu, Bac Van & Chen, Catherine Huirong, 2020. "Greenwashing in environmental, social and governance disclosures," Research in International Business and Finance, Elsevier, vol. 52(C).
    6. Qiong Yao & Suzhen Zeng & Shibin Sheng & Shiyuan Gong, 2021. "Green innovation and brand equity: moderating effects of industrial institutions," Asia Pacific Journal of Management, Springer, vol. 38(2), pages 573-602, June.
    7. Turrentine, Thomas & Tal, Gil & Rapson, David, 2018. "The Dynamics of Plug-in Electric Vehicles in the Secondary Market and Their Implications for Vehicle Demand, Durability, and Emissions," Institute of Transportation Studies, Working Paper Series qt8wj5b0hn, Institute of Transportation Studies, UC Davis.
    8. Majid, Kashef Abdul & Russell, Cristel Antonia, 2019. "Value dynamics in the secondary market: How pricing and product lines in the primary market affect value retention," Journal of Business Research, Elsevier, vol. 103(C), pages 89-99.
    9. Secinaro, Silvana & Calandra, Davide & Lanzalonga, Federico & Ferraris, Alberto, 2022. "Electric vehicles’ consumer behaviours: Mapping the field and providing a research agenda," Journal of Business Research, Elsevier, vol. 150(C), pages 399-416.

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