Signaling can increase consumers' willingness to pay for green products. Theoretical model and experimental evidence

2019 ◽  
Vol 18 (3) ◽  
pp. 233-246 ◽  
Author(s):  
Joël Berger
2009 ◽  
Vol 23 (3) ◽  
pp. 175-186 ◽  
Author(s):  
Papassapa Rauyruen ◽  
Kenneth E. Miller ◽  
Markus Groth

PurposeA significant way of achieving high profitability is to retain existing customers who contribute to the service provider's revenue by continuously purchasing and paying more for products and services and building brand equity to the provider. The main objective of this study is to empirically examine and extend the knowledge underlying the linkage between service loyalty and brand equity performance outcomes in the context of business‐to‐business markets. It aims to develop and empirically test a theoretical model examining the antecedents and the outcomes of service loyalty in a business‐to‐business context. The model also aims to examine the relationship between service loyalty and customer share of wallet and price premium, as well as the links between the proposed antecedents (habitual buying, trust in the service provider, and perceived service quality) and service loyalty.Design/methodology/approachThe theoretical model was empirically tested with a sample of 294 Australian small‐ to medium‐sized enterprises (SMEs), using online and paper‐and‐pencil surveys. Respondents were owners of SMEs, financial controllers, and managers who are decision‐makers in the selection and use of courier service providers for their businesses.FindingsFindings provide support for the theoretical model in linking drivers of service loyalty with two types of loyalty, purchase intentions (i.e. behavioural loyalty) and attitudinal loyalty. Furthermore, the two types of loyalty are differential predictors of brand equity outcomes in that customer share of wallet is mainly driven by purchase intentions, whereas willingness to pay a price premium is mainly driven by attitudinal loyalty.Originality/valueThe paper examines the relationship between service loyalty and willingness to pay a price premium as one key indicator of brand equity.


Author(s):  
J Halling ◽  
R D Arnell ◽  
K A Nuri

In a recent paper it was shown that the limit of elastic behaviour of rough surfaces could be defined by a unique relationship between the plasticity index and the nominal pressure. Specific experimental evidence suggested that the best theoretical model was one when the asperity height probability distribution was assumed Gaussian with a truncation of 3 σ. This paper extends this argument by showing that for a given ratio of plastic-elastic area of real contact, similar unique relations exist between the plasticity index and nominal pressure. It is assumed that the maximum non-dimensional elastic deformation is given by the inverse of the square of the plasticity index, and this is supported by experimental results. It is also shown that the model proposed is in error at higher pressures, due to the interaction of the deformations of adjacent asperities.


2021 ◽  
Vol 11 (2) ◽  
Author(s):  
Nguyen Gia Ninh ◽  

On the grounds that psychological factors are increasingly used to better explain the purchase intention of customers towards electric vehicles (EVs), this study aims to examine the critical but less explored roles of resistance to change and the need for uniqueness in the purchase intention of EVs besides other conventional factors such as perceived value or personal norms. In doing so, this study would help governments and managers introduce effective measures to persuade customers to change from traditional internal combustion engine vehicles (ICEVs) to EVs. Data was collected from 175 respondents in Vietnam and PLS-SEM was utilized to analyze the theoretical model. The results illustrate that resistance to change has a significant impact on the purchase intention of EVs. In addition, perceived value has the most significant effects on willingness to pay and purchase intention of EVs. The need for uniqueness also impacts purchase intention through the willingness to pay.


1979 ◽  
Vol 547 (3) ◽  
pp. 561-582 ◽  
Author(s):  
Klaas J. Hellingwerf ◽  
Jos C. Arents ◽  
Bob J. Scholte ◽  
Hans V. Westerhoff

2015 ◽  
Vol 33 (1) ◽  
pp. 67-89 ◽  
Author(s):  
Rohit H Trivedi ◽  
Jayesh D Patel ◽  
Jignasa R Savalia

Purpose – Marketers have realized the importance of assessing consumers’ willingness to pay (WTP) before introducing green products across different target audience. The purpose of this paper is to examine the relative influence of consumers’ pro-environmental behaviours (PEBs) and environmental locus of control (ELOC) on their WTP for green products. Design/methodology/approach – The study sample consisted of 256 Indian consumers which were recruited with the help of convenience sampling. A structured questionnaire was administered with scales that were well established and that have been used in previous research. Data were analysed with the help of CFA and structural equation modelling to test the relationship of ELOC and PEB anon WTP. Second, clustering respondents according to their PEB and ELOC has been done to find its differential effect on WTP with the help of multivariate analysis of variance (MANOVA). Findings – Findings of the study highlight that WTP for green products is significantly predicted by two variables which are in following order: PEB and ELOC. Results of cluster analysis and MANOVA revealed that WTP differ significantly with the level of intensity of ELOC and PEB among Indian consumers. Research limitations/implications – It advances the body of knowledge centred on the interplay of the PEB and ELOC to WTP for green products. Additional work is clearly required to consider the wide range of potentially relevant variables like brand image, prices, advertisements and product quality that ensures the generalizability of findings. Practical implications – The hypothesis framed, tested and inferences made can form a basis of extremely valued toolkit for those green marketers who take caution when planning their marketing and communications strategies to stimulate the WTP by conveying a reason and motivation to act environmentally. Originality/value – In this study, an understanding of WTP for green products is developed. The much required knowledge gap in terms of interplay of ELOC and PEB on WTP has been filled with the help of the present study. It has been identified that those consumer groups who displays higher PEB and ELOC forms the primary target audience for green product marketer.


2017 ◽  
Vol 173 ◽  
pp. 63-71 ◽  
Author(s):  
Zachary Burt ◽  
Robert M. Njee ◽  
Yolanda Mbatia ◽  
Veritas Msimbe ◽  
Joe Brown ◽  
...  

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