GREEN MARKETING ORIENTATION AND CONSUMER’S WILLINGNESS TO PAY: EXAMINING THE MEDIATING EFFECT OF BRAND COOLNESS AND MODERATING ROLE OF CUSTOMER ENGAGEMENT

Abstract

The growing concern of environmental sustainability has increased the interests in exploring the effects of green marketing in consumer behavior especially in the developing economies. This paper explores how Green Marketing Orientation influences Willingness to Pay (WTP) of green products by consumers with focus to the mediating effect of Brand Coolness. The research design employed was a quantitative, cross-sectional design where the data was gathered using a structured five-point Likert scale questionnaire that was to be conducted online and face-to-face. The proposed relationships were analyzed with the help of Partial Least Squares Structural Equation Modeling (PLS-SEM) using SmartPLS. The findings show that the visible green marketing activities, like eco-labeling and sustainable packaging, significantly affect Brand Coolness in a positive way. The mediation between the green marketing practices and Willingness to Pay in consumers is highly mediated by Brand Coolness, which implies that the brands with a perceived innovative, authentic, and socially relevant can better translate sustainability activities into price premium. Also, the relationship between Brand Coolness and Willingness to Pay is moderated by consumer engagement which enhances the association between them in the highly engaged consumers. It is a model that results in 48.2 percent and 48 percent variances of the Brand Coolness and Willingness to Pay, respectively. The paper makes a contribution to the literature of green marketing since it illustrates how brand perceptions and engagement can add value to sustainability initiatives in a developing country scenario.