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
Journal Title
Journal ISSN
Volume Title
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.
Description
Keywords
Pay Premiums , Green Brand Extension Product