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Building Green Brands: Global Consumers and Their
Willingness to Pay for Green Causes
Yuliya Strizhakova, Rutgers University – CamdenRobin Coulter, University of Connecticut
Linda Price, University of Arizona
The authors are grateful to the University of Kentucky’s Von Allmen Center for Green Marketing for their financial support.
Consumer-Brand Relationships in Modern Culture
Consumer Brand
Globalization Environmentalism
Socio-cultural context
Socio-emotional
context
Globalization and Consumer Identity
• Global consumer culture exerts a strong influence on how people perceive themselves.
• Evidence of varying global and local identity (Ger and Belk, 1996; Kjeldgaard and Askegaard, 2006; Steenkamp and de Jong, 2010).
Winter Park
Florida USA World
WorldUSA
Florida
Winter Park
Who are Global Citizens?
• They identify with the global world more than a particular country (Zhang and Khare, 2009).
• They view their “citizenship” in the world as important (Arnett, 2002; Strizhakova, Coulter, and Price, 2008).
• They perceive global brands as a path to expressing their global citizenship (Holt, Quelch, and Taylor, 2004).
• They are younger, more educated, innovative, heavier users of new media and express stronger possession attachment.
Environmentalism and Green Branding
• Consumers are increasingly concerned about environment. • Research in developed countries also shows that consumers
are favorable of green brands (Du, Bhattacharya, and Sen, 2007; Russell and Russell, 2010; Sen and Bhattacharya, 2001).
• Green branding is an important strategy for global and local brands in developed countries.
• Less evidence of green branding in emerging markets.
Research Framework
• Assess effectiveness of green brand building in developed and emerging markets– Globalization influence:
• Consumer global citizenship• Global companies vs. local companies• Global brands vs. local brands
– Environmentalism influence: • Green branding in relation to global causes, local causes, or none• Consumer environmental consciousness
– Outcomes:• Attitudes• Willingness to pay
Study Design
Multi-national
Local
COMPANY BRAND
Global
Local
Local
CAUSE
Global: Protection of
world’s oceans
Local: Protection of region’s lakes
and rivers
None
Study Samples
• Countries – Developed: U.S. (n = 797) and England (n = 317)– Emerging: Brazil (n = 185) and Russia (n = 309)
• Demographic characteristics– College-educated 17-25 year old consumers– About 57 - 60% females
Measurement
• Consumer Global Citizenship:– Global Identity (“I feel like I’m ‘next-door neighbors with people living
in other parts of the world.”)– Importance of global citizenship (“It is important to me to feel a part
of the global world.”)– Belief in global citizenship through global brands (“Buying global
brands makes me feel like a citizen of the world.”)
• Attitude toward the brand and the company
Measurement
Differential rate of willingness to pay • Measure of typical price paid for yogurt
– Approximately, how much do you (or someone in your household who purchases yogurt typically pay for an 8 oz. unit of yogurt?
– less than $.75 __$.75 __$1 __$1.25 __$1.50 __$1.75 __$2.00 __$2.25 __more than $2.25
• Price willing to pay for the described yogurt– Suppose you participated in a taste test for the local company, and really liked the taste
of the new line of yogurt. How much would you be willing to pay for an 8oz. unit of yogurt of this local brand?
– less than $.75 __$.75 __$1 __$1.25 __$1.50 __$1.75 __$2.00 __$2.25 __more than $2.25
• Calculated differential rate of willingness to pay
Priming and Covariates
• Primed participants on the necessity to protect water resources.
• Covariates included in all analyses– consumer trust in the company’s actions– consumer concern for the environment– attitude toward the product category of yogurt
Attitude toward Brand
Attitude toward the Brand by Global Citizenship
Willingness to Pay
• No significant main effects on consumer willingness to pay.
• 3-way interaction (brand x cause x global citizenship).
Willingness to Pay by Global Citizenship
Willingness to Pay by Global Citizenship
Cross-National Differences
Cross-National Differences
Cross-National Differences
Summary of Findings
Consumer- brand relationships are inscribed in the globalization context.
Global citizens are more responsive to global brands and their support of global green causes. Building green global brands with local causes does not impact the responses of global citizens.
Local citizens respond to local brands and local causes.
Summary of Findings
Building global green brands in emerging markets appears to be a viable strategy for multinationals.
Consumers are willing to pay a premium for global brands and their cause- related campaigns.
Building local green brands is a viable strategy in developed markets but more research is needed in emerging markets.
Future Research
• Can building green local brands in emerging markets be effective?
• Do we find the same patterns of results in broader samples?
• Expand to consumers in other markets.
QUESTIONS?
Thank you!