Developing multi-dimensional green value

Abstract

Purpose – The purpose of this study is to elucidate how green value influences potential green hotel customers’ propensity to choose green. Studies on green hotels emphasized environmental and financial benefits that conventional hotels do not provide to society or the companies. However, these benefits may not be the ones that resonate best with its potential customers. Besides, given the characteristics of green products, it is also important to point out how customers perceive green-related costs. Design/methodology/approach – A pilot test was conducted in three universities and then an anonymous questionnaire was randomly administered to Korean passengers at the Incheon International Airport. Exploratory factor analysis and structural equation modeling were the primary methods of data analysis. Findings – Four dimensions for perceived green benefits and three dimensions for perceived green costs emerged: functional, emotional, social and epistemic benefits; and monetary, explicit and implicit costs. Environmental concern influenced perceived green benefits positively and perceived green costs negatively, while its relationship with purchase intention was insignificant. Perceived green benefits was not a significant predictor of purchase intention, but perceived green costs was, and it partially mediated the effect of environmental concern on purchase intention. Functional and emotional benefits as well as monetary and explicit costs were significantly associated with purchase intention. Research limitations/implications – This study has only investigated customer perceived value of a green hotel stay in the pre-purchase stage, and hotel brand level was not taken into consideration. Besides, convenience sampling of Korean respondents only may limit the generalizability of the research findings. Practical implications – Research findings help to explain the inconsistency between eco-friendly attitude and green purchase intentions. Managers may understand the importance of developing customers’ green awareness and how to market the green value to them. Originality/value – Few researches have focused on the role of customer perceived value in explaining true behavioral change of green hotel guests. The current study may be the first attempt to incorporate the social exchange theory into the conceptual model, and extend the knowledge of perceived value in this specific green context by not only emphasizing multi-dimensional perceived green benefits and perceived green costs but also incorporating a situational factor of environmental concern.

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