Green marketing strategies: how do they influence consumer-based brand equity?

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. Global Business Advancement, Vol. 10, No. 3, 201
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Copyright © 2017 Inderscience Enterprises Ltd.
Green marketing strategies: how do they influence
consumer-based brand equity?
M. Sadiq Sohail
Department of Management and Marketing,
King Fahd University of Petroleum and Minerals,
Dhahran 31261, Saudi Arabia
Email: ssohail@kfupm.edu.sa
Abstract: This paper examines the effects of green marketing strategies on the
dimensions of consumer-based brand equity (CBBE). This study addresses a
gap in literature green consumers’ stated pro-environmental beliefs and actual
consumption behaviours of purportedly green consumers. Drawing upon
relevant extant literature, the paper proposes a research model to evaluate the
relationship between green marketing mix elements and the dimensions of
CBBE. With data collected from consumers in Saudi Arabia, the research
model is tested by a two-stage process. First stage is to assess reliability and
validity of the measurement model. Second stage is to test the various
hypotheses. The results of the conceptual analyses are presented. Managerial
implications and limitations are discussed. This study makes a valuable
contribution to literature given the growing importance of ecological and
sustainability concerns and the efforts marketing firms have been making to
have a better understanding of green consumers.
Keywords: brand equity; green marketing mix; green marketing; green
products.
Reference to this paper should be made as follows: Sohail, M.S. (2017)
‘Green marketing strategies: how do they influence consumer-based brand
equity?’, J. Global Business Advancement, Vol. 10, No. 3, pp.229–243.
Biographical notes: M. Sadiq Sohail is a Professor at the Department of
Management and Marketing, College of Industrial Management, King Fahd
University of Petroleum and Minerals, Saudi Arabia. He is also the
Vice President of the Academy of Global Business Advancement. His research
interest lies diverse areas of marketing, cross cultural consumer behaviour and
international business. He is a prolific researcher and has published over a
100 papers and contributed to several book chapters. He is also a recipient of
many research grants. He also serves in the Editorial Committees of a number
of other international journals in various capacities.
This paper is a revised and expanded version of a paper entitled
‘Green Marketing and its Impact on consumer based brand equity’ presented at
The 4th International Conference on Innovation and Entrepreneurship (ICIE
2016), Ryerson University, Toronto, Canada, 28–29 April, 2016.

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1 Introduction
Growing demand for environmentally friendly products has led to sustainability
becoming an integral part of doing business across all industries. The term ‘green
marketing’ finds roots in the concept of ecological marketing, which was first discussed
in 1975. Ecological marketing refers to studies on the adverse or positive impacts on
environmental pollution, energy consumption and consumption of other resources as
result of marketing. Consumers have also been more socially responsible to the
environment, exhibiting socially responsible consumption behaviour like purchasing
eco-labelled products, recycling and waste-sorting (Hartmann and Apaolaza-Ibáñez,
2009).
The concept of green marketing can be traced to the decade of the eighties (Chen and
Chang, 2013), but has attracted the attention of researchers only in recent times.
Extant research on green marketing issues have focused on profiling the green consumer
(e.g., Megicks et al., 2012), assessment of diverse green marketing strategies (Cronin
et al., 2011) and green marketing policies (Chan, 2013; Hsieh, 2012). Another stream of
research has examined the motivations to implement green initiatives (Bonilla-Priego
et al., 2011). Previous studies have analysed the effect of green marketing on consumers
(Chan, 2013; Hur et al., 2013; Slevitch et al., 2013).
Companies are recognising the importance of green initiatives in marketing and
developing appropriate strategies to create customer preference and competitive
advantage (Schubert et al., 2010). Consumers around the world are more apprehensive
about environmental degradation and the negative impact of use of such products
on environment. Several reasons contribute to this apprehension, for instance, global
warming, climatic change and growing concern of air and water pollution to name a few.
Green marketing practices gives an opportunity to address these environmental concerns
and meet the expectations of customers. Furthermore, firms can also create competitive
advantage and increase customer loyalty.
Several companies are implemented green marketing strategies. For instance, offering
eco-friendly product alternatives; recycled products; product packaging that focuses on
use of recycled paper, or eco-friendly packaging materials; green promotion through
advertisements and public relation efforts to communicate the green and environment
protection initiatives, etc. Green products are also being marketed by removing hazardous
raw materials in manufactured goods, and even service firms are focusing on service
innovations like reduction in energy consumption.
Besides, the growing consumer demands and initiatives by organisations for greener
environment and products, governments have also been clamouring for environment
protection. Various agencies and departments in different countries have been enacting
laws for protection of environment. In Saudi Arabia, the recently announced Vision 2030
includes directives for environmental sustainability. The initiative includes waste
management, recycling projects, reduction of pollution and fighting desertification
(Council of Economic and Development Affairs, 2016). Several international treaties like
the Kyoto protocol have been entered into by countries to fight global warming by
reducing greenhouse gas concentration in the atmosphere.
With an increasing attention on green marketing, research interest has also
been stimulated on measuring the relationship between green practices and
financial performance (Ham and Lee, 2011), green marketing and customer loyalty
(Martinez, 2015) and green marketing and brand equity (Namkung and Jang, 2013).

Green marketing strategies 231
However, it must be highlighted that extant studies on green marketing issues have
focused on specific products or manufacturing industries like electronic products,
cosmetics or toiletries (Chen and Chang, 2013; Hur et al., 2013) or hospitality industries
(Martinez, 2015; Namkung and Jang, 2013). Research on the investigation of the effect of
green marketing on issue related to brand equity is limited. Consequently, this study
bridges this gap by investigating the influence of green marketing mix elements on the
dimensions of consumer-based brand equity (CBBE). The objective of this study is to test
the relationship between the marketing mix elements of green strategy and CBBE.
The findings of this study provide valuable insights of the effects of the marketing
mix elements on the different elements of brand equity. These finding will be useful to
practice to organisations on how to differing green marketing values towards discrete
consumer segments.
2 Literature review
Green marketing mix refers to green product development and the execution of pricing,
promotional and distribution, which is specifically aimed at promoting or preserving
environmental welfare (Kinoti, 2011). A key factor that distinguishes traditional and
green marketing mix arises because of consumer preference for adopting sustainable
lifestyles and sustainable consumption habits, which do not harm the environment
and do not compromise the future. With this class of green consumers, organisations
need to understand their needs and buying behaviour and respond by creating
a green marketing mix that can result in creating a brand equity and better
performance.
Green products are typically created through environmentally friendlier processes
(Davari and Strutton, 2014). From an ecological perspective, green products are less toxic
and are produced or packaged from recycled materials (Ottoman, 1998). Green product-
related decisions include due consideration to the following aspects: recycling, reducing
packaging materials, reuse, enhancing product durability, reparability, consideration in
product disposal and safer products (Kinoti, 2011).
Price is an important factor of green marketing mix. Most consumers are willing to
pay a higher price, if they know the product’s value addition (Abzari et al., 2013).
Green prices refer to premiums that consumers have to pay to acquire green products
(Davari and Strutton, 2014). Green pricing leads to a premium in pricing, which is due to
higher green production costs (Peattie and Crane, 2005). Firms must persuade customers
to pay a premium price in order to benefit themselves, future generations or the
environment (Chan et al., 2012). Having said that, green prices should be reasonable and
competitive (Soonthonsmai, 2007).
Green promotion refers to the transfer of environmental information to consumers
in relation to the activities of the company (Polonsky and Rosenberger, 2001). Green
consumers view green marketing efforts to assess the effect of promotions and its benefit
to the environment (Kinoti, 2011). Firms use green promotional tools to convey messages
targeted at persuading customers of the environmental benefits. Green advertisements
typically are of the following types

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1 that show the relation between the product/service and the environment
2 that endorse green lifestyles, with or without highlighting a product/service
3 that enhance a sustainable environmental responsibility of the company
(Banerjee et al., 1995).
Green place decisions refer to a complex set of decision involving a network of activities
that goes from material procurement to distribution channel management to the point
of consumption. Green distribution has its roots on the following. First, green supply
logistics, which refers to the greening of traditional logistic processes. Second, green
production logistics, which relates to the use of clean production technology.
This includes efficient resources utilisation, reduction of energy consumption and waste.
Third, green sales logistics, which relates to the optimisation of transport routes and the
building of a ‘green’ sales network. Fourth, reverse logistics, which relates to planning,
implementing and controlling the efficient, cost effective flow of products and related
information from the point of consumption to the point of origin (Zhu et al., 2008).
As few green consumers actively search for green places, it is important for firms to
take decisions on the location decisions of green product availability. Green consumers
must be exposed to green products across green locations (Mishra and Sharma, 2012).
2.1 Brand equity
Brand equity is a key concept in both business practice and academic literature, because
research has suggested that successful brands give marketers competitive advantage.
Brand equity refers to the customer’s subjective and intangible assessment of the brand,
over and above its objectively perceived value (Rust et al., 2004). The most widely
accepted definition of customer-based brand equity is proposed by Aaker (1991), who
defines it as “a set of brand assets and liabilities linked to a brand, its name and symbol
that add to or subtract from the value provided by a product or service to a firm and/or to
that firm’s customers” (p.15). In summary, brand equity is the value of a brand in the
market (Randall, 2000). While researchers agree on the importance of brand equity and
on having brand management strategies, researchers have not to date come up with a
single, uniformly accepted theoretical basis for brand valuation (Raggio and Leone,
2007).
Two different perspectives on brand equity have emerged – financial and customers.
Most studies have highlighted the significance of understanding brand equity from the
customer’s point of views positive CBBE can lead to greater revenue, lower costs, higher
profits and ability to charge higher prices (Keller et al., 2011; Yoganathan et al., 2015).
Thus, understanding brand equity from the customer’s point of view is important, and the
present study considers this perspective. A description of the dimensions and their
constructs on which CBBE is based is examined and tested in the succeeding sections of
this study.
Perceived brand quality (PBQ) is defined as the customer’s judgement about a
product’s overall excellence or superiority in comparison to alternative’s brand
(Aaker, 1996; Zeithaml, 1988). Because PBQ influences perceived risks, there is a
strategic effect on brand quality. Consumers are likely to use attributes like colour,
flavour, form and appearance of the product and the availability of production
information (Bernués et al., 2003) to ‘infer’ quality (Acebrón and Dópico, 2000).

Green marketing strategies 233
Brand loyalty is the attachment that a customer has to a brand (Aaker, 1991). Loyalty
leads to repeated purchases (Sohail, 2013) or commitment to repurchase a brand (Oliver,
1999). Another benefit of loyalty to a firm is the customer’s willingness to pay higher
price for a brand in comparison with another brand offering similar benefits (Chaudhuri
and Holbrook, 2001).
Brand trusties defined as the “willingness of the average consumer to rely on the
ability of the brand to perform its stated function” (Chaudhuri and Holbrook, 2001, p.82).
Repeated interactions between a firm and its customer’s leads to long-term relationships
and increases trust (Holmes, 1991).
2.2 Conceptual framework and hypothesised relationships
On the basis of the foregoing review of literature, a framework is proposed considering
the elements of green marketing mix and CBBE. The framework indicates that the green
marketing mix elements are positively associated with four dimensions of CBBE namely
brand associations, brand quality, brand loyalty and brand trust (Figure 1).
Figure 1 Research framework
2.3 Green marketing mix and brand trust
Brand trust is defined as “the willingness of the average consumer to rely on the ability of
the brand to perform its stated function” (Chaudhuri and Holbrook, 2001, p.82).
Consumers’ belief that brands are consistently competent, honest and responsible leads to
brand trust (Doney and Cannon, 1997). A brand is a symbol of quality and assurance in
building trust (Bart et al., 2005). Brands communicate necessary information about the
product, thereby creating trust in customers (Chiu et al., 2010).
Furthermore, firms implementing the green marketing mix strategies are likely to
benefit from the government support, which leads to lowering cost of production and
increasing the value of customer offering. Green marketing efforts which meets desires of
consumers leads to increasing consumer trust (Davari and Strutton, 2014).
We argue that firms that adopt green marketing strategies design and make green
products leading to brand trust. Further brand trust is enhanced through promoting

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the green features of the product and utilising green distribution channels. Costs of
production may also be lowered as green marketing strategies might lead to government
subsidies. In other words, green marketing mix decisions has an influence on brand trust.
The following hypotheses are proposed:
H1a: Green product decisions positively influence brand trust.
H1b: Green price decisions positively influence brand trust.
H1c: Green promotion decisions positively influence brand trust.
H1d: Green place decisions positively influence brand trust.
2.4 Green marketing mix and brand loyalty
Brand loyalty reflects to a situation where a customer is likely to switch to another brand,
especially when the brand makes a change in price or in product features (Aaker, 1991).
In contrast, Keller (2003) observes brand loyalty as ‘brand resonance’ referring to the
nature of customer–brand relationship and their association with the brand. This implies
that customers with high brand resonance tend to have a high degree of loyalty and
actively interact with the brand and share experience with others.
One of the prominent components of brand equity is brand loyalty, which implies that
the consumers have a good attitude towards a particular brand over other competitors
(Sohail and Shaikh, 2009). Research suggests two primary dimensions of brand loyalty,
behavioural and attitudinal (Chaudhuri and Holbrook, 2001). While repeat purchasing
behaviours are the outcome of behavioural loyalty, attitudinal loyalty leads to creating
emotional bonds consumers and brands. Green marketing strategies leads to building a
positive public image, which in turn leads consumers to buy such products causing the
growth to brand loyalty (Ginsberg and Bloom, 2004). Given the importance of brand
loyalty, marketing mix efforts are directed towards creating brand loyalty. As firms
pursue green marketing strategies leads to creating an attitudinal brand loyalty in several
ways, namely designing green products to green consumers’ wants and needs; justify
benefits of green products with price premiums; communicate green product benefits
through green promotional activities; distribute through channels where environmental
responsibilities are considered important (Davari and Strutton, 2014). These attitudinal
attachments create a repurchase intention thereby leading to brand loyalty. On the basis
of foregoing discussion, the following hypotheses are therefore proposed:
H2a: Green product decisions positively influence brand loyalty.
H2b: Green price decisions positively influence brand loyalty.
H2c: Green promotion decisions are positively influence brand loyalty.
H2d: Green place decisions positively influence brand loyalty.
2.5 Green marketing mix and perceived brand quality
Aaker (1991) defines perceived quality as the overall perception of customers about the
quality of products in comparison to rivals offering. The actual product quality might be
different from the perceived quality as this is consumers’ subjective appraisal of product
quality (Erenkol and Duygun, 2010).

Green marketing strategies 235
PBQ is a key factor contributing brand quality (Rao and Monroe, 1989). When
consumers perceive a brand to be of high quality, they are more likely to purchase the
brand over competing brands, pay a premium price and choose the brand (Lee et al.,
2010). Firms employing green marketing mix could provide green products of higher
quality and justify this for higher prices. PBQ is also a component of brand value,
which leads consumers to select a particular brand rather than another competing brand
(Yoo et al., 2000). Through green promotion, firms could promote ecological values
through public relations and other promotional activities. Firms could also use green
channels for distribution and generate value for consumers through green location
decisions. Given the above evidence from literature, the following hypotheses are
therefore proposed:
H3a: Green product decisions positively influence PBQ.
H3b: Green price decisions positively influence PBQ.
H3c: Green promotion decisions positively influence PBQ.
H3d: Green place decisions positively influence PBQ.
3 Methodology
3.1 Development of measurement scales
The measurement items of the model were adapted from previously tested and validated
questions. Fraenkel and Wallen (2000) recommended the use of a previously developed
instrument. The four brand equity constructs were adapted from the works of Baalbaki
(2012), Chaudhuri and Holbrook (2001), Netemeyer et al. (2004) and Yoo et al. (2000).
The four independent variables of green marketing mix were adopted from Davari
and Strutton (2014). For each of the scales, respondents were asked to mark their level of
agreement on a 5-point Likert-type scale, where 1 (strongly disagree) and 5 (strongly
agree). Table 1 provides item details, means and standard deviations. Previous studies
using similar scales report acceptable reliability and validity.
3.2 Survey instruments
Because the measurement scales were developed in the West and the surveys were
administered in Saudi Arabia, back translation as of the questionnaire was undertaken to
ensure accuracy of translation (Brislin, 1970).
3.3 Sample and data collection
Samples of residents were surveyed with a questionnaire in Saudi Arabian context to
validate the research hypotheses. The target population for the purpose of this study
comprised mainly young individuals residing in the eastern province of Saudi Arabia,
which is the largest and the most environment friendly region. A structured questionnaire
was used to collect the data.
A convenience sample was used (non-probabilistic sampling procedure) to design
the research sample. Although convenience sampling is not the best method, this is

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considered ‘a necessary evil’ for data collection in Saudi Arabia (Sohail et al., 2012).
We followed the procedures laid out by Salganik and Heckathorn (2004).
Table 1 Profile of respondents
Gender F (n = 334) %
Male 208 62.3
Female 126 37.7
Age (years)
18–34 236 70.7
35–54 81 24.3
55 and over 17 5.1
Ethnic background
Saudi 199 59.6
Non-Saudi 135 40.4
Educational level
High school or below 26 7.8
Diploma 80 24.0
Bachelor’s Degree 171 51.2
Masters’ Degree 50 15.0
Doctoral Degree 7 2.1
Monthly income (Saudi Riyals)
6000 or less 71 21.3
6001–12,000 95 28.4
12,001–20,000 118 35.3
20,001–40,000 50 15.0
3.75 Saudi Riyals pegged at 1 USD.
Six housing compounds across the tri-cities were chosen for data collection.
These sites were thought to be more mature and aware of green brands. A total of
500 questionnaires were distributed to voluntary respondents. Of these questionnaires,
of which 365 were completed and returned. These completed questionnaires were
then checked for inconsistencies, incompleteness or missing data. To increase accuracy
and precision, an editing process was undertaken by reviewing the questionnaire and
screening out illegible, inconsistent and ambiguous responses. After this process, data
cleaning was undertaken for a more thorough and extensive treatment of responses.
After this round of elimination due to incompleteness, 21 were discarded leaving with
334 usable responses. Table 1 shows a profile of the respondents.
3.4 Profile of the respondents
The demographic profile of respondents indicates that a majority 62.3% of the
respondents were males and the remaining were females. This is still good and is not
surprising, as socially and culturally, it is a challenge to approach females. With respect

Green marketing strategies 237
to age, an overwhelming percentage of respondents (70.7) are in the age group of
18–34 years. There are 24.3% of respondents in the age group of 35–54 years. 5.1% of
respondents were above 55 years of age. The distribution of sample is representative
of the overall population distribution in the Kingdom. In terms of educational
qualification, 51.2% of the respondents have undergraduate qualification. As for the
nationality of respondents, 59.6% of the respondents were Saudis, while the remaining
expatriates. Finally, there is also an even distribution of incomes in the four groups.
An overview of these provided in Table 1.
3.5 Overall model fit
Confirmatory factor analysis (CFA) and reliability analysis for all the constructs were
performed by employing the latest version of AMOS. The results of CFA shows a good
fit for the theoretical model (see Table 2). The average variance extracted (AVE) of
constructs exceeds the minimum criteria of 0.50. These results confirm the convergent
validity of each construct and discriminant validity for all constructs. Reliability
estimates for each construct using coefficient alpha (Cronbach, 1951) and the composite
reliabilities for each of the constructs exceeded the 0.70 threshold. All shared variances
extracted for each construct are acceptable because they exceed the recommended 0.50
value (Bagozzi and Yi, 1988; Fornell and Larcker, 1981). Discriminant validity is also
established, as the AVE is greater than the square of the construct’s correlations with the
other factors (Fornell and Larcker, 1981). Overall, the measurement model statistics
support the psychometric properties of the survey instruments.
Table 2 CFA of complete measurement model
Scale and item description (N = 334) Mean SD
Standardised
loadings Alpha
Green product 0.81
This firm produces environmentally friendly products 2.90 1.28 0.79
This firm tries to improve the design and quality of its
products in order to make them more environmentally
friendly
2.96 1.25 091
This firm has been a pioneer in introducing green products
to the market
2.80 1.17 0.88
Green price 0.83
This brand usually charges more for its environmentally
friendly products
2.45 1.14 0.87
I must pay more to purchase the environmentally friendly
products that are made by this firm
2.76 1.24 0.92
Green products that are made by this firm are more
expensive than non-green alternatives
2.80 1.29 0.91
Green promotion 0.81
This firm provides a lot of information about its green
products in its advertisements
2.55 1.42 0.87
This brand offers special promotions and deals
(price discounts, coupons, etc.) to people who
purchase its green products
2.61 1.07 0.91

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Table 2 CFA of complete measurement model (continued)
Scale and item description (N = 334) Mean SD
Standardised
loadings Alpha
Green place 2.45 1.21 0.80
This firm’s green products can be found in stores which
themselves are known for supporting environmental and
green causes
2.79 1.13 0.89
The stores that sell green products made by this firm are
usually environmentally friendly themselves
2.71 0.99 0.91
Brand loyalty 0.83
Even if there is another brand as good as this one,
I still prefer to buy this brand
3.49 1.30 0.90
If this brand is available, I simply will not buy similar
brands made by other firms
3.41 1.21 0.87
Brands offered by this firm are usually my first choice 3.26 1.29 0.92
I am loyal to the brands marketed by this firm 3.36 1.15 0.85
Brand quality 0.79
Products made by this firm are consistently high in quality 3.60 1.01 0.89
Brands marketing by this firm consistently perform better
than other brands in the same category
3.57 1.03 0.83
The firm’s product is high quality 3.62 1.05 0.91
Green products made by this firm are the best in their class 2.88 1.16 0.88
Brand trust 0.80
This brand is safe to use 3.32 1.28 0.92
This is an honest brand 3.55 1.07 0.86
I trust brands made by this firm 3.49 1.15 0.90
1 Measure of model fit: cχ2/d.f. = 1.86; RMSEA = 0.065; NFI = .88; CFI = 0.89;
PCFI = 0.80 (AGFI is not available in AMOS when estimating means and intercepts);
R = standardised regression coefficient; AVE = average variance extracted; and
CR = construct reliability. *p ≤ 0.001.
2 Scale: 1 = Strongly disagree to 5 = Strongly agree.
4 Results of the hypotheses
Following the validation of the measurement model, hypotheses were tested using
structural equation modelling (SEM). The structural model’s fit was assessed using
the same model fit statistics from the CFA. Scores of the fit statistics of the CFA
revealed that all of these are within the cut-off points suggested by Hair et al. (2010).
Hypotheses were tested using the criteria of statistical significance of the relationship at
the 0.05 level. Results are presented in Table 3. H1 proposed that the four elements of
green marketing mix (i.e., product, price, promotion and place) were positively related
to brand trust. Of these four green marketing mix elements, three of the elements
that is green product, place and promotion (H1a, H1c and H1d were significant).

Green marketing strategies 239
Consumers seem to have a difficulty in accepting the notion that premium prices will
enhance brands performance of stated function.
Table 3 SEM output for hypothesised relationships in the proposed model
Hypotheses paths
SEM output
Results
Standard regression
weights p
H1a Green product → brand trust 0.387 0.000 Supported
H1b Green price → brand trust 0.020 0.762 Not supported
H1c Green place → brand trust 0.230 0.000 Supported
H1d Green promotion → brand trust 0.293 0.000 Supported
H2a Green product → brand loyalty 0.287 0.000 Supported
H2b Green price → brand loyalty 0.124 0.094 Not supported
H2c Green place → brand loyalty 0.358 0.000 Supported
H2d Green promotion → brand loyalty 0.167 0.061 Not supported
H3a Green product → brand quality 0.368 0.000 Supported
H3b Green price → brand quality 0.147 0.006 Not supported
H3c Green place → brand quality 0.201 0.000 Supported
H3d Green promotion → brand quality 0.028 0.653 Not supported
The second set of hypotheses tested the proposition that green marketing mix elements
significantly influence consumers’ brand loyalty. Results were mixed, with two of the
four sub-hypotheses finding support. Green product and place elements were
significantly associated with brand loyalty. Green marketers should focus on product
element and green distribution channels to create brand loyalty. Green marketers it
appears are not promoting effectively the justification for higher prices as well as on the
ecological benefits, which leads to brand loyalty.
The third set of hypotheses proposed that each green marketing mix element would
be positively associated with perceived brand. Once again, two of the four hypotheses,
that is green product and place, were significantly associated with brand quality. These
results further lend support to the importance of emphasising on the greener elements of
product to ensure the quality enhancement. In addition, the choice of channel and the
final delivery influences consumers’ perception of quality. Higher prices and green
promotional efforts apparently do not influence PBQ by consumers in Saudi Arabia.
5 Managerial implications
Overall, green product and place are the two elements of the marketing mix, which have
a positive influence on each of the three dimensions of brand equity. Green price
surprisingly does not have any influence on brand equity. This has several implications
for managers. First, as green products influence consumers brand associations, marketers
must focus on green product strategies to develop brand equity. Second, marketers must
also emphasise the choice of appropriate green distribution channels, as these are also
significant drivers of brand equity. Third, green promotions seem to make only a limited

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influence on brand loyalty. This underscores the need to redesign communication
objectives of green promotions. It may also be worthwhile to using more appropriate
green promotions like creating environmental awareness, sponsoring ecological causes,
engagement with society on environmental-related issues, etc. Fourth, green price was
found to have no influence on brand loyalty. Clearly, consumers see no justification for
higher prices in green marketing. Marketers must take into consideration and focus more
on greener products and distribution decisions. Overall, results reveal that consumers
green marketing strategies particularly product, place and to limited extent promotion s
do influence brand equity. Strategically, marketers should segment the market and target
the environmentally concerned consumers by developing the green marketing mix
strategy.
6 Limitations, future directions and conclusion
While this study reveals interesting results, a few inherent limitations need to be
mentioned. First, future studies should consider more variables as well as the extended
marketing mix elements to further explore the factors influencing brand equity. Second,
this study selected only three dimensions of CBBE. It will be interesting to see the effects
of CBBE to scholars and marketers, with a comprehensive study of other dimensions of
CBBE. Third, respondents were drawn from a section of the consumers in Saudi Arabia,
which limits the generalisability of the findings. Further studies in other locations are
required. To finally conclude, this study reports the initial findings in areas of growing
importance to marketers: increasing global coverage on ecological concerns, emphasis on
greener and cleaner alternatives and innovations in marketing, and calls for more research
on environmentally conscious marketing against the backdrop of growing competiveness.
Acknowledgements
The author thanks King Fahd University of Petroleum and Minerals, Saudi Arabia,
providing facilities support in completion of this research.
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