Willingness To Pay Premiums For Green Brand Extension Product: Moderating Effect Of The Green Extension Strategies

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Date
2014-02
Authors
Rahbar, Elham
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Publisher
Universiti Sains Malaysia
Abstract
The main objective of this study is to investigate whether individual’ willingness to pay premium (WTPP) for green brand extension products is influenced by his/her evaluation of the green brand extension and their attitude toward green extension advertisement (Aexad). The study also investigates if green brand extension strategy and environmental claims moderate the relationship between Aexad and green extension evaluation. A total of 320 Malaysian undergraduate students from four universities of four states of Peninsular Malaysia participated in this experimental study. When Aexad is regressed with the WTPP, Aexad is found to show significant change in WTPP for green brand extension. It is also found that when an individual has a positive Aexad, she/he will evaluate green brand extension favorably. In addition, when individual evaluates the green extension products positively, she/he will pay more to purchase these types of products. The results of the study indicate that green brand extension strategy acted as a moderator in the relationship between Aexad and green extension evaluation. Interestingly, within green brand extension strategy the impact of the green line extension is greater than green category extension. Environmental claims, however, are not a moderator as hypothesized in the study.
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Keywords
Pay Premiums , Green Brand Extension Product
Citation