CONSEQUENCES OF GREEN BRAND EQUITY

Abstract

This study aims to determine the impact of the consequences of Green Brand Equity of green products. Structural Equation Modeling (SEM) is used as a method in this study with several variables such as Green Brand Equity, Green Brand Attachment, Green Self-Brand Connection, Green Brand Attitude, and Green Word of Mouth. This study also examines the mediating role of three main components, namely Green Brand Attachment, Green Self-Brand Attitude, and Green Self-Brand Connection. The number of respondents used were 209 people, with the criteria of respondents who had used "Love Beauty and Planet" and "The Body Shop", two green skin care/cosmetic brands in the last two years. Results of this study show significant impact of Green Brand Equity on Green Brand Attitude, Green Brand Attachment and Green Self-Brand Connection. Results also indicate the mediating role of Green Brand Attitude, Green Brand Attachment and Green Self-Brand Connection in predicting the influence of Green Brand Equity on Green Word-of-Mouth. However, there is no direct impact of Green Brand Equity on Green Word-of-Mouth. The findings of this study provide insights for managers to strengthen green brand equity that finally would boost consumers’ intention to spread positive word-of-mouth about green skin care/cosmetics.

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