How to earn a premium price: the effect of green marketing and brand coolness

Abstract

PurposeThe current paper aims to explore how brand coolness can mediate the relationship between tactical green marketing orientation (GMO) and willingness to pay (WTP), by exploring the differences between two global brands with opposite green marketing perceptions.Design/methodology/approachBased on the stimuli-organism-response (S-O-R) framework, the relation between tactical GMO, brand coolness and consumer's WTP is examined through a survey with 272 participants, who gave their perceptions about two different brands regarding their green orientations: British Petroleum (BP) and L'Oréal. The variable set was adapted and validated through focus group sessions.FindingsBrand coolness is found to mediate the impact GMO on WTP and, for both brands, green marketing does affect the extent to which brands are perceived as cool by consumers. More importantly, evidence shows that only in the case of the “green brand” (e.g. L'Oréal), the impact on WTP is significant, which offers new implications regarding the outcomes of companies' pro-environmental policies.Originality/valueThis study is the first to investigate the outcomes of GMO over consumer's intentions (WTP) and the role of brand perceptions (coolness). The effects are compared between two global brands, with significantly different perceptions on their environmental sustainability.

Leveraging brand coolness for building strong consumer-brand relationships: different implications for products and services

“…Regarding the identity mechanism, the results partially concur with insights into how perceived coolness influences brand connection for hotels (Bogicevic et al , 2021) and intelligent voice assistants (Guerreiro and Loureiro, 2023). Furthermore, these mechanisms expand upon prior studies which have primarily examined the direct relationships between perceived coolness and brand satisfaction (Khoi and Le, 2022), brand love (Tiwari et al , 2021), brand advocacy (Bagozzi and Khoshnevis, 2023) and willingness to pay (Guerreiro et al , 2023). With these mediators, this research also complements earlier studies that have explored alternative mediation mechanisms, such as perceived fit in co-branding (Suzuki and Kanno, 2022), brand experience (Zhang et al , 2021), psychological ownership (Feng et al , 2023) and brand gratitude (Koskie et al , 2023).…”

“…Three confirmatory factor analysis models were established and estimated using AMOS in each brand sample. Model 1 specified brand coolness as a second-order construct reflected by ten cool attributes as first-order constructs (Guerreiro et al , 2023). Considering mass-marketed brands, subcultural and rebellious attributes are deemed less important and relevant to brand coolness (Bagozzi and Khoshnevis, 2023; Warren et al , 2019).…”

Mapping the sustainability branding field: emerging trends and future directions

“…Similarly to CSR, the outcomes of green marketing are shaped by symbolic brand meanings. Green claims are insufficient (Guerreiro et al , 2023; Rosenbaum and Wong, 2015) unless brand perceptions are strengthened consistently. The premium price of many sustainable/green brands is identified as a barrier.…”

Purchase Intentions in Indonesian E-Learning: A Study on Brand Equity, Advertising, and Pricing

“…It's not just the amount a customer pays for a product or service, but also a signal of value, quality, and brand positioning [35]. The pricing strategy chosen by a business can determine its market segment, affect its brand image, and play a vital role in competitive differentiation [36]. Effective pricing strategies can range from premium pricing to establish a high-value perception, to competitive pricing to attract cost-conscious consumers [37].…”