Green Orientation and Customer-Based Brand Equity in FMCG Industry in India

Main Article Content

Article Sidebar

Published Sep 14, 2021
Japneet Kaur Purba Fezeena Khadir

Abstract

In the recent years, the idea of green-oriented approach and policies have gained traction in both academic research as well as corporate research. Companies are now able to identify the long-term benefits of being responsible towards the environment and keep a check on their actions.

This paper attempted to understand the relationship between green-orientation of a brand, antecedents of customer based brand equity namely Brand Awareness, Perceived Brand Quality, Brand Loyalty and Brand Association, and Customer-Based Brand Equity with respect to the FMCG Industry in India. It was done to check the validity of the concept that a green-oriented brand image would lead to an increased or better customer-based brand equity.

Data was collected from 207 FMCG product consumers from all over India who were above the age of 18 years. It was done by the way of questionnaires on a five point Likert’s scale. The constructs of the questionnaire were based on the variables of the study.

Cronbach’s Alpha was calculated for all the constructs which came out to be more than 0.7 for all of them which signified reliable responses. Person’s correlation coefficient was calculated to ascertain the relationship between green orientation and the antecedents of CBBE. All the antecedents had a significantly positive relationship with Green Orientation. Brand Awareness and Brand Loyalty had the most positive relationship with Green Orientation. Multiple Linear Regression was calculated to establish the influence of antecedents of CBBE on CBBE. It was found that Brand Loyalty was the most significant influence on CBBE whereas Brand Association was the least.

The results of the study show the contribution of green-oriented approach of brands in enhancing the customer-based brand equity of the brands under study. It was observed that the brands which were more aggressive and active in their activities towards the environment, garnered a more loyal customer base and that the consumers were more aware of these FMCG brands. The results of this research would be helpful for the brands to take decisions accordingly as it may act as an incentive to be more innovative towards sustainable ways of operating.

How to Cite

Purba, J. K., & Khadir, F. . (2021). Green Orientation and Customer-Based Brand Equity in FMCG Industry in India. SPAST Abstracts, 1(01). Retrieved from https://spast.org/techrep/article/view/311
Abstract 2 |

Article Details

Keywords

Customer Based-Brand Equity, Brand Awareness, Brand Quality, Brand Loyalty, Brand Association, Green Orientation, Green Branding, Aaker's Model

References
[1]. Aaker, D. (1991). Managing Brand Equity. New York: Free Press.
[2]. Aaker, D. A. (1996). Building strong brands. New York: Free Press.
[3]. Amegbe, H., & Hanu, C. (2016). Exploring the Relationship Between Green Orientation, Customer Based
Brand Equity (CBBE) and the Competitive Performance of SMEs in Ghana. Journal of Marketing Development
and Competitiveness, 10(1), 80-93.
[4]. Aulina, L., & Yuliati, E. (2017). The Effects of Green Brand Positioning, Green Brand Knowledge, and Attitude
towards Green Brand on Green Products Purchase Intention. Advances in Economics, Business and
Management Research, 36, 548-557.
[5]. Babiak, K., & Sylvia, T. (2011, January 21). CSR and environmental responsibility: motives and pressures to
adopt green management practices. Corporate Social Responsibility and Environmental Management, 18(1), 11-
24.
[6]. Baldauf, A., Cravens, K. S., & Binder, G. (2003). Performance consequences of brand equity management:
evidence from organizations in the value chain. Journal of Product & Brand Management, 12(4), 220-236.
[7]. Banerjee, A. (2017). Role of corporate social responsibility in enhancing brand equity a Kolkata based study
of selected FMCG brands.
[8]. Banerjee, A. (2017). Role of corporate social responsibility in enhancing brand equity a Kolkata based study
of selected FMCG brands.
[9]. Chovanová, H. H., Korshunov, A. I., & Babcanova, D. (2015). Impact of Brand on Consumer Behaviour.
Procedia Economics and Finance, 34, 615-621.
[10]. Development, W. C. (1987). The Brundtland Report. Oxford: Oxford University Press.
[11]. Feldwick, P. (1996). Do we really need ``brand equity? The Journal of Brand Management, 4(1), 9-28.
[12]. Ginsberg, J. M., & Bloom, P. N. (2004). Choosing the right green marketing strategy. MIT Sloan
Management Review, 46(1), 79-84.
[13]. Gupta, G., & Nagpal, S. (2020, April). Green Attributes and Customer-Based Brand Equity: Synthesis and
Examination of Banking Services. NMIMS Management Review, 38, 93-109.
[14]. Hartmann, P., & Apaolaza-Ibanez, V. (2009). Green advertising revisited; conditional virtual nature
experiences. International Journal of Advertising: The Review of Marketing Communication, 28(4), 715-739.
[15]. He, Y., & Lai, K. K. (2014). The effect of corporate social responsibility on brand loyalty: The mediating role
of brand image. Total Quality Management and Business Excellence, 25(3), 249-263.
[16]. Indian FMCG Industry Analysis. (2021, January 5). Retrieved from India Brand Equity Foundation:
https://www.ibef.org/industry/Fmcg-presentation
[17]. Keller, K. L. (1991). Measuring and managing customer-based brand equity. Journal of Marketing, 1, 1-22.
[18]. Keller, K. L. (2008). Strategic brand management Building, measuring, and managing brand equity. Upper
Saddle River, NJ: Prentice Hall.
[19]. Kim, V. W., & Periyayya, T. (2013). The Beauty of “Green Branding”: Way to the Future. Global Journal of
Management and Business Research, 13(5), 29-36.
[20]. Kim, V. W., & Periyayya, T. (2013). The Beauty of “Green Branding”: Way to the Future. Global Journal of
Management and Business Research Marketing, 13(5), 29-36.
[21]. Kotler, P. (2003). Marketing Management (11th ed.). New Delhi: Prentice Hall.
Lee, K.-H., & Shin, D. (2010). Consumers' responses to CSR activities: The linkage between increased
awareness and purchase intention. Public Relations Review, 36(2), 193-195.
[22]. Mourad, M., & Ahmed, Y. S. (2012, September). Perception of green brand in an emerging innovative
market. European Journal of Innovative Management, 15(4), 514-537.
[23]. Mourad, M., & Ahmed, Y. S. (2012, September). Perception of green brand in an emerging innovative
market. European Journal of Innovation Management, 15(4), 514-537.
[24]. Poploli, P. (2011, December). Linking CSR strategy and brand image. Marketing Theory, 11(4), 419-433.
[25]. Schuler, D. A., & Cording, M. (2006). A Corporate Social Performance–Corporate Financial Performance
Behavioral Model for Consumers. Academy of Management Review, 31(3), 540-558.
[26]. Sen, S., & Bhattacharya, C. (2001). Does Doing Good Always Lead to Doing Better? Consumer Reactions
to Corporate Social Responsibility. Journal of Marketig Research, 38(2), 225-243.
[27]. Sohail, M. S. (2009). The impact of electronic service quality in creating customer value and loyalty. J for
Global Advancement, 2(3), 221-236.
[28]. Sohail, M. S. (2017, January). Green marketing strategies: how do they influence consumer based brand
equity? Journal for Global Business Advancement, 10(3), 229-243.
[29]. Sohail, M. S. (2017). Green marketing strategies: how do they influence consumer-based brand equity? J.
Global Business Advancement, 10(3), 229-243.
[30]. Sohail, M. S. (2017, January). Green marketing strategies: how do they influence consumer-based brand
equity? J for Global Advancement, 10(3), 229-243.
[31]. Sudha, R. (2018). A study on brand loyalty behaviour in FMCG market. 184.
[32]. Voorde, F. v. (2017). The Effects of Sustainable Practices on on Customer-based brand equity.
[33]. Wongpitch, S., Minakan, N., Powpaka, S., & Loahavichen, T. (2016). Effect of corporate social responsibility
motives on purchase intention model: An extension. Kasetsart Journal - Social Sciences, 37(1), 30-37.
[34]. Wood, L. (2019, September 9). Global FMCG Market Opportunity Analysis, 2018-2019 & 2025 - A Billion
New Consumers in Emerging Markets. Retrieved from PR News Wire: https://www.prnewswire.com/newsreleases/global-fmcg-market-opportunity-analysis-2018-2019--2025---a-billion-new-consumers-in-emergingmarkets-300913934.html
[35]. Wu, C. S. (2015). A study on consumers' attitude towards brand image, athletes' endorsement and
purchase intention. The International Journal of Organizational Innovation, 8(2), 233-253.
[36]. Wu, C. S., & Chen, T.-T. (2019). Building Brand’s Value: Research on Brand Image, Personality and
Identification. International Journal of Management, Economics and Social Sciences, 8(4), 299-318
Section
SMH1: Management