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Green products and corporate strategy : an empirical investigation

D`Souza, Clare, Taghian, Mehdi, Lamb, Peter and Peretiatkos, Roman 2006, Green products and corporate strategy : an empirical investigation, Society and business review, vol. 1, no. 2, pp. 144-157.

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Title Green products and corporate strategy : an empirical investigation
Author(s) D`Souza, Clare
Taghian, Mehdi
Lamb, Peter
Peretiatkos, Roman
Journal name Society and business review
Volume number 1
Issue number 2
Start page 144
End page 157
Publisher Emerald Publishing Group
Place of publication Bingley, England
Publication date 2006
ISSN 1746-5680
Keyword(s) customer satisfaction
green marketing
labelling
product management
Summary Purpose – The purpose of the study is to examine the influence of multiple factors on the green purchase intention of customers in Australia.

Design/methodology/approach – A conceptual model is proposed and was subjected to empirical verification with the use of a survey of metropolitan and regional households in Victoria, Australia. The data were analyzed using both descriptive measures and exploratory factor analysis to identify and validate the items contributing to each component in the model. AMOS structural modeling was used to estimate the measure of respondents' overall perception of green products and their intention to purchase.

Findings – The results indicate that customers' corporate perception with respect to companies placing higher priority on profitability than on reducing pollution and regulatory protection were the significant predictors of customers' negative overall perception toward green products. The only positive contribution to customers' perception was their past experience with the product. Other factors including the perception of green products, product labels, packaging, and product ingredients did not appear to influence customers' perception. The results also indicate that customers are not tolerant of lower quality and higher prices of green products.

Research limitations/implications – The knowledge of the overall perception formation about green products and its predictors provides management with the facility to identify and implement strategies that may better influence the change of attitude by customers. Corporations can also benefit from the identification of the types of information required to enable management to influence this process of perception formation.

Originality/value – The present findings contributes to an understanding of the antecedents of green purchasing and highlight that green customers rely more on personal experience with the product than the information provided by the marketer.
Notes Reproduced with the kind permission of the copyright owner. Copyright :
Language eng
Field of Research 150599 Marketing not elsewhere classified
HERDC Research category C1 Refereed article in a scholarly journal
ERA Research output type C Journal article
Copyright notice ©2006, Emerald Publishing Group
Persistent URL http://hdl.handle.net/10536/DRO/DU:30008943

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