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Investigating the Effect of Green Brand Innovation and Green Perceived Value on Green Brand Loyalty: Examining the Moderating Role of Green Knowledge

Author

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  • Gebeyehu Jalu

    (Department of Marketing Management, College of Business and Economics, Mekelle University, Mekelle P.O. Box 231, Ethiopia
    School of Commerce, Gujarat University, Ahmedabad 380009, Gujarat, India)

  • Goshu Dasalegn

    (Doctoral School of Economic and Regional Sciences, Hungarian University of Agriculture and Life Sciences, Páter Károly u. 1, 2100 Gödöllő, Hungary
    Department of Accounting and Finance, Faculty of Business and Economics, Kotebe University of Education, Addis Ababa P.O. Box 5563, Ethiopia)

  • Gurudutta Japee

    (School of Commerce, Gujarat University, Ahmedabad 380009, Gujarat, India)

  • Anita Tangl

    (Doctoral School of Management and Business Administration, John von Neumann University, Izsáki Str. 10, 6000 Kecskemét, Hungary)

  • Anita Boros

    (Szent Istvan Campus, Institute of Agricultural and Food Economics, Hungarian University of Agriculture and Life Sciences, Páter Károly u. 1, 2100 Gödöllő, Hungary)

Abstract

The numerous organisations voicing their concerns show that concern for the environment has increased compared to earlier times. This study aims to investigate the relationship between green brand innovation and green perceived value, along with its impact on green brand loyalty within the Ethiopian banking sector. Based upon previous research, this study delves into the distinctions between innovation and innovativeness, exploring their respective influences on brand loyalty. Additionally, this study introduces the roles of green perceived value as a mediator and consumer green knowledge as a moderator in shaping green brand loyalty. To assess the conceptual model, a survey was conducted using convenience sampling among 600 customers using internet banking services across nine reputable banks. This approach aimed to capture a representative sample for the conceptual model. Subsequently, data analysis was performed using a structural equation model (SEM). The results indicated that consumers’ perceptions of green value have indirect effects on green brand loyalty and direct effects on green brand innovation. In addition, green knowledge moderates the relationship between green brand innovation and green perceived value in a significant way. Therefore, in order to increase customer loyalty to green brand innovations, organisations should focus on improving consumers’ environmental literacy and cultivating positive attitudes towards green businesses.

Suggested Citation

  • Gebeyehu Jalu & Goshu Dasalegn & Gurudutta Japee & Anita Tangl & Anita Boros, 2023. "Investigating the Effect of Green Brand Innovation and Green Perceived Value on Green Brand Loyalty: Examining the Moderating Role of Green Knowledge," Sustainability, MDPI, vol. 16(1), pages 1-15, December.
    • Handle: RePEc:gam:jsusta:v:16:y:2023:i:1:p:341-:d:1310381
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    References listed on IDEAS

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