The Need to Do Good: How to Succeed With a Green Strategy

Abstract

This master thesis investigates the effect of green initiative and brand image separately and jointly. We hypothesize that green philanthropic behavior leads to greater perceived product quality than green core attributes. Also, we argue that in a green context, a symbolic brand image leads to higher perceived product quality than a functional brand image. We further discuss a possible interaction effect between green initiative and brand image. Last, we argue that there is a mediation effect of perceived product quality on consumer responses. Data from an online experiment in Qualtrics with 240 participants were analyzed in SPSS through several ANOVA analyses, contrast analysis, linear regressions, and mediation analysis with PROCESS by Hayes (2013). Results from a scenario-based between-subject experiment revealed that implementing green philanthropic behavior seems to be a safer choice than implementing green core attributes. Also, symbolic brands fit better with sustainable matters than functional brands. We discovered an interaction effect between green initiative and brand image. The interaction is such that green philanthropic behavior leads to significantly higher perceived product quality than green core attributes for functional brands, while there is no significant difference for symbolic brands. Last, statistical evidence supports that perceived product quality operates as a mediator in our study. We give managerial implications and recommendations for how brands can succeed in the green shift. Managers must think differently to convince consumers that green core attributes do not come at the expense of product quality. Even though this requires additional research and resources, brands can potentially benefit from it in the long run. Keywords: Brand image, consumer preference, environmental development, green attributes, luxury, sustainability, philanthropic behavior