Green Marketing: The Roles of Appeal Type and Price Level

Chiou‐Fong Wei · Bruce C.Y. Lee · Tun‐Chih Kou · Chun-Kuang Wu

20 citations0/0 files storedRePEc: Research Papers in Economics

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Environmental Sustainability in Business Consumer Behavior and Marketing Influence Consumer Market Behavior and Pricing

Abstract

Environmental sustainability has attracted considerable interest in recent years in improving competitive advantage for both profit and non-profit organizations worldwide. Advertising appeal and pricing strategy for green products offer the potential for substantially improving consumers’ perception of quality, price, risk, and their intention, but previous studies focusing on this issue was relatively scarce and reported divergent and inconsistent results. This study adopted prospect theory to examine the role of appeal type and price level on consumers’ perceptions and purchase intentions toward green products in the context of advertising. By literature review and pre-test, a conceptual model with six postulated hypotheses is proposed. Participants were randomly assigned into six groups in accordance with the two × three (appeal type × price level) research design. A structured questionnaire is designed to collect field data. The results show that green advertising enhances perceived quality, price fairness, and purchase intentions more than non-green advertising appeal does. Simultaneously, low pricing enhances perceived price fairness, reduces financial risk, and strengthens purchase intentions more than high pricing strategies do. Consumers consider both green advertising appeal and low prices as risk-averse conditions. Before introducing a green marketing strategy, the marketer must seriously consider the consumer reactions toward green products have transformed from negative evaluations into positive ones from the consumer’s perspective. This study could provide green marketing implications in terms of how to effectively use advertising appeal and pricing strategy to increase consumers’ perceptions and buying intentions towards green products.

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References

1988Prospect theory: An analysis of decision under risk 1980Understanding Attitudes and Predicting Social Behavior 1988Consumer Perceptions of Price, Quality, and Value: A Means-End Model and Synthesis of Evidence 1980Translation and content analysis of oral and written materials 2006Corporate Social Responsibility, Customer Satisfaction, and Market Value 1993Price Perceptions and Consumer Shopping Behavior: A Field Study 1999The role of perceived risk in the quality-value relationship: A study in a retail environment 1998The effect of store name, brand name and price discounts on consumers' evaluations and purchase intentions

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2021Customer Behavior of Green Advertising: Confirmatory Factor Analysis 2019Developing a Green Corporate Image: An Achievement for Competitive Advantage through Organizational Culture and Green Marketing Strategy 2021The strategy of eco-friendly products with green consumer behavior: Development of green trust model

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