Modelling the Relationship among Green Perceived Value, Green Trust, Satisfaction, and Repurchase Intention of Green Products

INTRODUCTIONEconomic activities have been using up resources from the planet at an alarming rate. Consumption is more and more clearly seen to be creating harmful effects on the natural environment (Koller, Floh, & Zauner, 2011). Scientists and environmentalists have repeatedly warned governments that our planet has been in environmental turmoil for the past few decades. Some have said that the solution to saving our planet is to go green in our living. As more people become aware of the problem of global warming, more consumers become eager to engage in "green consumption" (Whitmarsh, 2009). Eco-friendly or green products are welcomed by consumers as they help preserve the natural environment and reduce the pollution and degradation of our planet. More companies have realized new business opportunities and started to take advantage of the relatively new trend of green marketing or sustainability marketing, which is the "effort made by business organizations to design and promote products that are eco-friendly" (Choudhary & Gokarn, 2013). These companies focus on the development of green marketing, which is about developing strategies that can generate profits for companies while being able to sustain, protect, and preserve the environment (Kotler & Armstrong, 2013). LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENTGreen Marketing and Competitive AdvantageIn the era of global warming, environmental consideration in consumption has become widely accepted by consumers, and more consumers are paying attention to green products (Chen & Chang, 2012). With the heightened awareness of environmental concerns, consumers are eager to purchase more green products (Kalafatis, Pollard, East, & Tsogas, 1999), which are perceived to be not as harmful to the environment (Chen, 2010). Green products are able to command a premium price; for example, 83% of Brazilians, 93% of Thai, and 53% of Americans are willing to pay more for the purchase of green products (Makower, 2009). As a result, green products have become a powerful weapon in building a competitive advantage because more consumers are willing to pay a higher price for green products (Bhat, 1993). Green marketing is defined as "the holistic management for identifying, anticipating and satisfying the requirements of customers and society, in a profitable and sustainable way" (Peattie, 1998). It is also defined by the American Marketing Association in three aspects-namely, "the marketing of products that are presumed to be environmentally safe" (retailing), "the development and marketing of products designed to minimize negative effects on the physical environment or to improve its quality" (social marketing), and "the efforts by organizations to produce, promote, package, and reclaim products in a manner that is sensitive or responsive to ecological concerns" (environments). Green marketing refers to marketing strategies that constitute an important part of corporate social responsibility, attract customers who are concerned about society, stimulate positive views from stakeholders, and facilitate corporations' triple-bottom-line accounting, thereby simultaneously contributing to the three facets of sustainability: economic prosperity, environmental quality, and social equity (Choudhary & Gokarn, 2013; Stenzel, 2010). Research has shown that companies could benefit from sustainable green marketing strategies that enable the development of competitive advantages in both B2C and B2B environments (Porter & van der Linde, 1995). According to the resource-based view, competitive advantage is conceptualized as the implementation of a strategy that is currently not used by competing firms but helps "reduce costs, exploit market opportunities, and neutralize competitive threats" (Barney, 1991). Companies that can attain a competitive advantage can improve their economic performance in ways that cannot be matched by competitors (Newbert, 2008). …