Sustainable Consumer Behavior
The effects of green advertising on green
purchase intention and the mediating role
of green brand image
Nienke Cnossen 11851449
Bachelor’s Thesis Management in the Digital Age Business Administration
Supervisor: L.A. Napitupulu Amsterdam, July 10th, 2020
Statement of Originality
This document is written by Student Nienke Cnossen who declares to take full responsibility for the contents of this document.
I declare that the text and the work presented in this document are original and that no sources other than those mentioned in the text and its references have been used in creating it.
The Faculty of Economics and Business is responsible solely for the supervision of completion of the work, not for the contents.
Abstract
Although their increasing environmental concern, there still exists an inconsistency between consumers’ attitude towards sustainability and their actual purchasing behavior of green products. The aim of this research is to investigate how green purchase intention can be encouraged. An important factor in the decision-making process for purchasing green products, is green advertising. This study proposes that exposure to green advertising helps consumers in making a more informed decision about which brands to consume and what the impact is on the environment, which influences purchase intention. Furthermore, green brand image explains the relationship between exposure to green advertising and green purchase intention in such a way that the more the brand is perceived as being green in the advertisement, the higher the purchase intention. However, the green claims in the advertisement must be credible. More specifically, the hypotheses in this research state that exposure to a green advertisement as compared to a non-green advertisement will positively affect purchase intention through green brand image, but that ad skepticism will decrease this effect. The hypotheses are tested using an online survey, consisting of an experiment and a questionnaire. With a sample of 197 consumers, multiple regression analyses are carried out to measure the difference between exposure to green advertising and exposure to non-green advertising. The results show that exposure to green advertising does not directly influence purchase intention, while exposure to green advertising indirectly through green brand image does increase purchase intention. The level of ad skepticism, however, did not moderate the indirect effect of exposure to green advertising on purchase intention, through green brand image.
Table of Content
1. Introduction………...5
2. Theoretical Framework………....7
2.1 Exposure to green advertising………...7
2.2 Green purchase intention………...8
2.3 Mediating role of Green brand image………...9
2.4 Moderating role of Ad skepticism………...11
2.5 Conceptual Framework………...13
3. Methodology………14
3.1 Design, Sample & Procedure………...14
3.2 Measurement of Variables ……….16
3.3 Analytical Plan………17
4. Results………...…18
4.1 Descriptive Statistics, Reliability and Correlations……….18
4.2 Regression Analysis………19
4.2.1 Mediation Analysis………...19
4.2.2. Moderated Mediation Analysis………...….21
5. Discussion and Conclusion………..23
5.1 Summary……….23
5.2 Key Findings………...23
5.3 Limitations & Future Research………25
5.4 Practical Implications………..25
5.5 Conclusion………...26
6. References………27
7. Appendix………..33
1. Introduction
In the past several years, global warming, climate change and pollution has gained increasing consideration. Consumers are being more concerned about the environment than ever (Kostadinova, 2017). This environmental consciousness has increased the demand for green products in the market worldwide. The expectation for 2021 is that 25% of total product sales, are green products (CPG, FMCG & Retail, 2018). A green product is defined as “a product that was manufactured using toxic-free ingredients and environmentally-friendly procedures, and which is certified as such by a recognized organization” (Gurau & Ranchod, 2005, pp 547-548). With the growing attention for sustainability, many consumers consider themselves to be ‘green’ and are willing to buy green products. However, it turns out there is an inconsistency between consumers’ attitude towards sustainability and their actual purchasing behavior of green products (Terlau & Hirsch, 2015).
There is a great deal of academic literature, which focuses on this attitude-behavior gap in sustainability. The majority of the existing literature concentrates on the drivers behind the gap. An important factor that influences the decision-making processes of purchasing a sustainable product is the awareness and information a consumer has about the environment and the sustainable product. The less information available about sustainable products, the more uncertain consumers may be regarding what product to choose (Vermeir & Verbeke, 2005).
Advertising is the most effective tool that marketers often use to get consumers’ attention and helps consumers to get more information about a product (Zhu, 2013). Green advertising helps with communicating the brand’s green products or green image and stimulating consumers’ consciousness behind fostering their environmental knowledge and sustainable behavior. With green advertising companies try to persuade consumers and to increase sales (Mkik, Khouilid, & Aomari, 2017). Digitalization and the rise of Internet makes it possible for marketers to reach a much larger group of potential consumers. Through the use of Internet and the increased transparency of it, consumers get exposed more often to online advertisement. Marketers invest largely in posting ads on different online media channels, websites and other platforms (Leeflang, Verhoef, Dahlström, & Freundt, 2014), since the global digital population consist of 4.57 billion active internet users, which is almost 60% of the world population (Statista , 2020).
However, there still exists some ambiguity in how effective green advertising is. Because of the increasing use of internet, consumers are overwhelmed with advertisements, which can influence their decision-making process and perception of brands. Consumers could
perceive green claims as unbelievable which gives them a more negative image of the brand (Finisterra do Paço & Reis, 2012).
There is a lot of research done about green advertising and what factors can influence green purchase intention (Chen, 2009). Companies emphasis on sustainability has found its roots in the 1970s, but with the increasing amount of internet usage, it has become even more important for companies to focus on manufacturing green products and build a green brand image (Leeflang, Verhoef, Dahlström, & Freundt, 2014). Despite the numerous amounts of research and concerns on sustainability, recent research about the effects of green advertising on green purchase intention is lacking. There is no clear evidence that exposing consumers to green advertising will increase their green purchase intention and how it affects consumers’ green brand image.
This research aims to fill the scientific gap of the effects of green advertisements on customers by examining to what extent exposure to green ads as compared to non-green ads may influence the purchase intention and if this is mediated by green brand image. It also studies whether ad skepticism moderates the indirect effect of exposure to green advertising on green purchase intention through green brand image.
Hence, this paper will build upon the existing insights in how effective green advertising is on sustainable behavior of consumers. This leads us to the following research question: To
what extent mediates green brand image the relationship between exposure to green advertisements and the intention to purchase green products, and to what extent is this indirect effect moderated by the level of ad skepticism?
2. Theoretical Framework
2.1 Exposure to Green Advertising
Green advertising has significantly evolved since it was first described by Banerjee, Gulas, & Iyer (1995) as the following: “any advertisement that meet one or more of the following criteria: (1) explicitly or implicitly addresses the relationship between a product/service and the biophysical environment, or (2) promotes a green lifestyle with or without highlighting a product/service, or (3) present a corporate image of environmental responsibility” (p. 22). Zinkhan & Carlson (1995) conclude that green advertising is more focusing on the promotional message. In their study, green advertising is described as “promotional messages that may appeal to the needs and desires of environmentally concerned” (p. 1). Hartmann & Apaolaza-Ibáñez (2008) describe that green ads advertise or promotore environmentally friendly attributes of products. In this study, a combination of definitions is used to describe green advertising, since this research is focusing on the promotional messages the advertisement provides about the environmentally friendly attributes of a particular product or brand. Therefore, green advertising can be described as the following: any advertisement that promote the environmentally friendly product or brand attributes to attract consumers’ needs and desires related to the environment.
To examine the effects of exposure to green advertising, a comparison is made between the exposure to a green ad versus a non-green ad. In the context of this study, non-green ads can be described as ads that do not advertise or promote environmentally attributes of products, but promote other non-green product or brand attributes, such as cost saving or functionality attributes (Schuhwerk & Lefkoff-Hagius, 1995).
Advertising has several functions: providing information, persuading customers, reminding them, and reinforcing positive beliefs that they may have about certain brands (Shimp, 2003). The primary goal of exposing consumers to green ads is to inform them about the environmental benefits of the product or brand and try to influence their purchase behavior by encouraging them to buy green products (Rahbbar & Wahid, 2011).
Over the past two decades, green advertising has become the most common tool of green marketing. The growing concern for environmental harming practices is the driving force behind green marketing. Companies anticipate on this concern by informing and educating consumers about their eco-friendly practices and products. They are using green advertising to target consumers by designing new products, repositioning existing product and creating a new brand image. It is also important for companies to use green marketing as a strategic tool for competitive advantage (Mo, Liu, & Liu, 2018).
2.2 Green purchase intention
Purchase intention is “the sum total of cognitive, affective and behavioral towards adoption, purchase, and use of the product, service, ideas or certain behaviors” (Dadwal, Jamal, Harris, Brown, & Raudhah, 2020, p. 70). Consumers’ purchase intention can guide future purchasing behavior, that is, it can predict the realization of a purchase (Wu & Chen, 2014). It is a critical factor to predict consumer behavior (Fishbein & Ajzen, 1975). Consumer behavior can be defined as “the decision-making process and physical activity involved in acquiring, evaluating, using and disposing of goods and services” (Tehria, 2016, p. 116). The decision-making progress is influenced by three factors: consumers as individuals, environmental influences and marketing strategies conducted by the company. Advertising is part of the marketing strategy of companies (Kusnandar & Rinandiyana, 2017).
Although many consumers have a positive attitude toward sustainable products, it is not reflected in their green purchase behavior (Park & Lin, 2018). Research about green purchase behavior has been conducted since the early 70s. Green purchase behavior can be defined as “the consumption of products that are benevolent or beneficial to the environment, recyclable or conservable, sensitive/responsive to ecological concerns” (Wahid, Rahbar, & Shyan, 2011, p.40). Green purchase intention can be used to predict actual green purchases. Chen & Chang (2012) define green purchase intention as “the likelihood that a consumer would buy a particular product resulting from his or her environmental needs” (p. 507). Another definition of green purchase intention is “the probability and willingness of a person to give preference to products or brands having eco-friendly features over other traditional products or brands in their purchase considerations” (Rashid, 2009, p. 134). In this study, the comparison is made between an advertising of a brand with green claims and an advertising of a brand which does not have green claims, thus a traditional brand. Therefore, the most suitable definition for green purchase intention in this study is from Rashid (2009).
Previous studies into purchase intention after exposure to green advertising has shown inconsistent results. A study conducted by Chase & Smith (1992) found that environmental messages in advertisement ‘sometimes’ influence purchase decisions. Research performed by Ahmad, Shah, & Ahmad (2009) shows that many factors in environmental advertising, such as credibility of the green claim, relevance, attitude towards the ad and information provided in the ad, influence the purchase intention of green products. However, Rizwan et al. (2014) emerged a research model by which he could explain the relationship between green advertising and purchase intention. He found that consumers believe that environmental advertising increases their knowledge about green products. This helps consumers to make a more
well-considered decision, so he concludes that exposing consumers to green advertisement will have a positive effect on green purchase intention. Ansar (2013) has examined the impact of green marketing on consumer purchase intention. He suggest that environmental advertisements postively contribute to a higher purchase intention of green products by consumers, because advertising is a powerful tool to influence consumer preference for a or brand. The purchase of a green product can be reviewed from the information a consumer has about the product. Since informing consumers about the eco-friendly attributes of products is the main goal of green advertising, green advertising can help obtain information (Vermeir & Verbeke, 2005). According to Ansar (2013), green advertising is an effective way to enhance consumers’ knowledge about the environment and green products. Exposing consumers to green advertisements can help them to make a more informed decision about which products or brands to consume and what the impact is on the environment.
Altogether, environmental or green advertisements are useful by enhancing consumers’ motivation towards buying green products. The promotional tactics used to get consumers’ attention will attract consumers, because they feel like they are better informed of the advertised brand or product, which will likely increase their intention to purchase the green product instead of the traditional product. Based on the existing literature, the following hypothesis can be made:
H1: Exposure to green ads as compared to non-green ads leads to a higher purchase intention.
2.3 Mediating role of Green Brand Image
Brand image is a widely recognized concept in marketing. Brand image is the perception consumers have about the symbolic meanings of a brand that associate with the specific attributes of a brand (Nagar, 2015). Brand image can be defined as “a consumer’s mental picture of a brand in the consumer’s mind that is linked to an offering” (Chen, 2009, p. 308). Additionally, brand image reflects upon the perception about a brand the consumer has by brand associations (Cretu & Brodie, 2007). With brand image, brands can distinguish themselves from its competitors when it is difficult for consumers to compare brands that are selling similar products or services (Lin, Lobo, & Leckie, 2017). Because brand image is mostly about the perception of a particular brand in a customers’ mind, brand image does not exist in the features or attributes of the product itself, but more about how the brand presents itself. It is brought by advertisements, promotions or users (Wang & Tsai, 2014).
Chen (2009) has made a novel construct of brand image in the context of sustainability: Green brand image. This refers to “the set of perceptions of a brand in a consumer’s mind that is linked to environmental commitments and environmental concerns” (p. 309). It is a subset of the overall brand image and part of marketing strategies. The most important advantage of creating a green brand image is the increase of environmental awareness for customers (Zabadi, 2016). Companies engaging in green marketing strategies have incorporated consumer’s green brand impressions into their advertising and communication strategies. A brand is successful in building a green brand image in consumers’ minds, when a brand is capable to ignite emotions, perceptions, attitudes, intentions or behaviors about sustainability and environmental concerns (Hsieh, Pan, & Setiono, 2004).
The pressure for brands to be environmentally friendly is impossible to ignore, so companies must develop new business models in order to keep up with consumers’ needs for environmentally friendly products (Chen, 2009). Companies try to put themselves on the market as sustainable, eco-friendly, environmentally conscious or green in order to build a green brand image. The goal of building a green brand image is that consumers prefer to buy from them (Bukhari, Rana, & Bhatti, 2017). Companies try to communicate their green brand image through green advertising, because campaigns with the right green claims are the edge of a company’s brand image (Alamsyah et al., 2018).
Literature suggests that more interest is placed on green advertisement building a green brand image rather than just focus on advertising the green product (Nagar, 2015). First, it is important for companies to build green awareness, letting the customer know the company is participating in environmentally friendly practices. Green brand awareness is created through exposure. If a consumers holds a positive and strong association with the advertisement to which he or she is exposed, they are more likely to have a positive brand image. Thus, according to Huang, Yang, and Wang (2014) an active green advertising strategy gives consumers more positive perceptions of the green brand, which enhances green brand image. Consumers exposed to green advertisements as opposed to conventional advertisements can have different perceptions (Alamsyah et al., 2018). Additionally, in his study, Nagar (2015) states that consumers perceive brands that use green advertising as more positive. Based on the mentioned theories, the following hypothesis can be made:
H2: Exposure to green ads will lead to a more positive green brand image as compared to non-green ads
There are many evidences that green brand image significantly influences the purchase decision of consumers (Chen, 2009). From previous research, it is sighted that green brand image is an important factor for green purchase intentions (Bukhari, Rana, & Bhatti, 2017). Consumers are not only focusing on price and quality of products when making purchase decisions, but also the brand image can have a significant influence. Consumers are usually not having enough time and product knowledge to make a well-considered choice between similar products (Jeong, Jang, Day, & Ha, 2014). Therefore, brand image is often used as an extrinsic cue to help them decide which product to choose (Richardson, Dick, & Jain, 1994).Gadenne, Sharma, Kerr, and Smith (2011) have found that consumers having environmental concerns associate themselves with green brands. They prefer to buy from brands to which they feel more connected, which increases their purchase intention. In the research of Kusnandar & Rinandiyana (2017) about the effects of green marketing on purchase intentions, green brand image was considered as a mediating variable. They concluded that green brand image was positively related to green purchase intentions. Rahmi et al. (2017) found evidence for a positive relationship between green brand image and green purchase intention. Also, Rizwan et al. (2014) did an empircal study about which factors influence green purchase intentions. He found the same relationship between green brand image and green purchase intention. Additionally, Wang (2014) did research about green brand knowledge and concluded that green brand image is posetively related to green purchase intention. Based on this existing literature, the following hypotheses can be made:
H3: The more the brand is perceived as being green, the higher the purchase intention. H4: The relationship between exposure to green advertising and green purchase intention is mediated by the level green brand image.
2.4 Moderating role of Ad skepticism
The Internet provides the opportunity for companies to expose their advertisements to a much larger public than before (Leeflang, Verhoef, Dahlström, & Freundt, 2014). Consumers are overwhelmed with advertisements, which influences their information processing process. Overwhelming can cause consumers to be unmotivated to evaluate all the information they are perceiving (MacInnis, Moorman, & Jaworski, 1991).
Previous research found evidence that consumers often are experiencing disbelief and skepticism towards advertising claims (Obermiller et al., 2005). Ad skepticism is defined by Obermiller & Spangenberg (1998) as “the tendency to disbelieve the informational claims in advertising” (p. 160). Ad skepticism determines the consumers’ responses to advertisement.
In addition to skepticism towards general ads, many prior studies have found that consumers are even more skeptical towards green advertisements (Matthes & Wonneberger, 2014). Finisterra do Paço and Reis (2012) conclude that the credibility of green advertising is relatively low. Consumers do think that green ads include more misleading and false claims than normal ads. They ask themselves if the ecological value and greenness of products and services is not exaggerated by companies. This concept can be descibred as ‘greenwashing’. Greenwashing refers to the “the act of misleading consumers regarding the environmental practices of a company or the environmental benefits of a product or service” (Parquel, Benoit-Moreau, & Larceneux, 2011, p. 127). Because of the increasing concern of the environment, consumers want companies to be sustainably responsible in terms of production processes and products. The incentive for companies to be sustainably responsible is strong, because this affects the brand image and the intention to buy from that brand (Rahman, Park, & Geng-qinq Chi, 2015). The drivers for companies to participate in ‘greenwashing’ can be devided into three levels: external, organizational, and individual drivers. External drivers are the main reasons for firms to ‘greenwash’. External drives can be explained by pressures from consumers, investors, competitors and regulators. It includes the demand for green products, services and firms because of environmental concerns. Greenwashing is most common in advertising claims of a brands’ products or services (Delmas & Burbano, 2011). Skepticism towards the advertisement can arise when consumers perceive an inconsistency between the claims provided in the ad and the actual performance of businesses (Rahman et al., 2015).
In prior research, it is found that processing of ad information, establishment of brand beliefs, attitudes toward the ad and responsiveness to advertising techniques are all moderated by consumers’ skepticism towards advertising, which in turn influence someone’s purchase intention (Obermiller et al., 2005). Additionally, Kim and Lee (2009) state in their research about consumer ad skepticism that when consumers are more skeptical toward ads, the less they like advertising and the less they rely on the advertised brand or product. Consumers can perceive the brand as less reliable and less sustainable, when they have high level of ad skepticism. Based on the existing literature about ad skepticism, the following hypothesis can be made:
H5: The indirect effect of exposure to green advertising on green purchase intention through green brand image is moderated by the level of ad skepticism.
2.5 Conceptual Framework
Figure 1 illustrates the expected relationships, which will be tested in this study using data. It clarifies the relationships between the independent variable exposure to green advertising, dependent variable green purchase intention, the mediator green brand image and the moderator ad skepticism.
+ -
Exposure to green
advertising Green purchase intention
Green Brand Image Ad Skepticism
+ +
3. Methodology
3.1 Design, Sample and Procedure
To measure the relationship between the independent variable exposure to green advertising and the dependent variable green purchase intention, mediated by green brand image, a quantitative research was carried out, with a deductive approach. This quantitative research has an experimental design. Stimulated experiments are used to describe causal relationships between the variables, rather than only the correlation. The independent variable contained two different conditions (green advertising vs. non-green advertising). Each participant of the survey was randomly assigned to only one of the two conditions. The treatment or experimental group, which consisted of half of the respondents, was exposed to a green advertisement. The other half of the respondents was exposed to a non-green advertisement, which makes them the control group. Each participant had equal chances of being assigned to each condition. This experimental approach implies an independent measure design or between-subjects design. Between-subject experiments give insights in differences of outcomes between two groups, in this case green advertising or non-green advertising, whereas within-subject experiments provide insights in different reactions for each individual (Budiu, 2018; McLeod, 2017). In a within-subject experiment, participants are influenced after the first condition, which makes them biased before the second condition (Shuttleworth, 2020). In this research, a between-subject design is used, because the differences between two conditions, green or non-green advertising, are examined, instead of the differences for each individual. Based on the manipulated between-subject experiment, the dependent variable, mediator and moderator were measured.
For this study, it was important to know whether participants perceived the advertisements as green or non-green, so before conducting the main study, a manipulation check was done. A manipulation check is a separate test used to determine the effectiveness and reliability of the manipulation in an experimental design. A manipulation check is used to check whether participants understand and react as expected to the manipulated experiment (Hoewe, 2017). To test the reliability of the manipulated advertisement, 15 people in known circles of the researcher were asked to judge six advertisements of different products, both green and non-green advertisements for brands. Two beverage advertisement (Cola and WholeEarth Cola), two hand soap advertisements (Dettol and Seepje) and two laundry detergent advertisement (Ajax and Ecowash). They were asked to assess the greenness of each advertisement and in what product category the difference between the green and non-green brand was the most obvious. The participants rated the difference in greenness of the hand soap
brands advertisements (Dettol and Seepje) as the most, so these advertisements were used in the study.
A questionnaire was used to measure the effects of the main experiment. Data was collected by means of an online survey, created at Qualtrics.com. The survey was introduced by an introduction about the research and the guarantees of anonymity for participants. In the first question, participants were asked if they agree to participate in this study. In case of a negative response, the relevant participant was excluded from this survey. Participants were then asked a number of questions about their personal characteristics, such as gender, age and highest education level. After that, the participants were randomly exposed to either a green advertisement or a non-green advertisement. Thereafter, the variables green brand image, green purchase intentions and ad skepticism were tested using a questionnaire. The questionnaire consisted of statements, which participants had to assess in terms of agreement with a 5-point Likert scale.
Prior to conducting the survey, the required sample size was determined. An a priori power analysis is with the program G*Power 3 (Faul, Lang, & Bunchner, 2007) is done to calculate the sample size needed to achieve a certain power. The test family was set at F-tests with the statistical test Linear multiple regression: Fixed model, R2 deviation from zero. This
analysis assumes an effect size of 0.15, a-error probability of 0.05 and a power (1-ß error probability) of 0.95. The number of predictors is 2. The analysis gives a total required sample size of N=107.
The questionnaire was completed by a selection of participants who were not chosen at random, because of convenience sampling. Within a period of two weeks, responses were collected by offering the survey in known circles of the researcher.The people who participated in this research, were approached through means of different media channels, like Facebook, WhatsApp and LinkedIn, in order to target different age groups. LinkedIn mainly attracts participants in the age of 30-60, while Facebook and WhatsApp attract participants aged younger, 18-30 (Aronsson, 2014).
The total number of respondents was 212. Only respondents who competed the full questionnaire were included in the analysis, resulting in a final sample of 199 (N=199), which was above the required sample size. The bigger the sample size is, the higher the reliability is (Faul, Lang, & Bunchner, 2007). The sample consisted of 72 male (36,2%) and 127 female (63,8%) participants. 52,3% was aged between 18 and 24 years. This is because the survey was mostly spread among students. The age groups 25-40 and 41-64 were almost equal, respectively
20,6% and 23,1% and only 4% was above 65 years old. The majority completed a bachelor’s degree (42,2%), followed by a master’s degree (29,1%) and a high school graduate (26,6%). 3.2 Measurement of variables
All variables tested in this research, are operationalized and based on sustainability. The operationalization looked at how the variables must be measured. The independent variable was measured by means of an experiment. Based on this, the dependent variable, the mediator and the moderator are tested using statements. Below the measurement of each variable is described.
Independent variable: Exposure to Green Advertising vs. Exposure to Non-green Advertising In this study, the independent variable consisted on two conditions. The independent variable
was tested by exposing participants to either an advertisement with green claims (first condition) or an advertisement with non-green claims (second condition). Half of the participants was exposed to the green advertisement (treatment group) and half of the respondents was exposed to the conventional advertisement (control group) in order to measure the difference between those groups. Both ads showed similar hand soap products from different brands; Seepje and Dettol. The advertisement differed in terms of sustainability. The brand Seepje is considered as a green brand and the brand Dettol as a conventional brand. The Seepje advertisement showed green claims such as ‘Environmentally friendly ingredients’, and ‘Bottles made from 97% recycled plastic’. The Dettol advertisement showed claims such as
‘Kills 99,9% of bacteria and removes viruses.’
As part of the manipulation check, a single-item scale was added after exposure to one of the two advertisements: “To what extent do you think this advertisement can be considered
as a green advertisement?’ with 5 answer option ranging from not green at all to very green.
After exposure to the green advertisement, a high score (4 or 5) on greenness was expected and after exposure to the non-green advertisement, a low score (1 or 2) on greenness was expected. Failing to answer this question correctly could suggest that participants did not understand what green advertising was or filled out the survey randomly. All participants answered this question correctly, so no respondent had to be removed.
Dependent variable Green Purchase Intention
Based on prior research, a questionnaire was composed to measure the dependent variable purchase intention. Purchase intention was measured using existing scales, which was used in the study by Grewal, Krishnan, Baker, and Borin (1998). The items were “The probability that
I would consider purchasing this product/brand is…” and “I am willing to purchase this product/brand in the future.” Participants had to answer the question using a Likert scale raging
from one to five (with 1 very unlikely and 5 very likely). A high score implies a high degree of purchase intention. The reliability of the variable purchase intention is a= 0,934 (2 items).
Mediator Green Brand Image
On the basis of previously described literature, the questionnaire for measuring green brand image as a mediator was composed of the constructs commitment, reputation, performance, protection and trustworthiness. These constructs were measured using an existing scale from the study of Chen (2009). Examples of items were: “This brand is considered as the benchmark
of environmental commitment” and “The brand’s environmental commitment is trustworthy”.
Again, participants had to answer those questions using a Likert scale raging from one to five (with 1 strongly disagree and 5 strongly agree). A high score implies that the consumers’ perception of the brand is very environmental friendly, thus a more positive green brand image. The realiability of the variable green brand image is a= 0,953 (5 items).
Moderator Ad Skepticism
In this study, ad skepticism was regarded as the moderator between green advertising and green brand image. To measure ad skepticism, the well-known SKEP scale devised by Obermiller and Spangenberg (2005) was used. Examples of items were: “Advertising is a reliable source
of information about the quality and performance of products” and “I can depend on getting the truth in ads”. Again, participants rated the statements by using a five-point scale, ranging
from one to five (with 1 strongly disagree and 5 strongly agree). A high score implies that consumers are less skeptic towards advertisements. The variable showed a reliability score of a= 0,878 (7 items).
3.3 Analytical plan
The statistical calculations were performed using SPSS. Below is described what analysis has been done and what steps have been taken during the analysis. In order to analyze the hypotheses, this study used the PROCESS macro by Hayes (2017). To test hypothesis 1 to 4, model 4 of the PROCESS tool was used, which measures mediation effects. Moreover, to analyze hypothesis 5, model 7 of the PROCESS tool was used. This moderated mediation model provides insights in the conditional indirect effect at different values of the moderator.
The control variables gender, age and education were left out, because results showed that they have no significant effect on the main variables.
4. Results
This chapter gives an overview of the results. First, descriptive statistics, the reliability of the variables and the correlation between the variables are described. Thereafter, the assumption for the regression are described, followed by the results of the hypothesis tests.
4.1 Descriptive statistics, reliability and correlations
Bivariate correlation analyses were conducted to see what correlations between the variables exist. Table 1 presents the descriptive statistics and Pearson’s r correlation coefficients between the control variables gender, age and education and all the other variables exposure to green advertising, green purchase intention, green brand image and ad skepticism. There are no existing significant correlations between the control variables gender, age and education and the other variables.
Furthermore, results show that the independent variable exposure to green advertising is significantly positively correlated with the dependent variable green purchase intention (r= 0.29, p<0.001), with the mediator green brand image (r= 0.64, p<0.001) and with the moderator ad skepticism (r= 0.25, p<0.001). As expected before, all the main variables indicate a moderate to strong positive correlation.
The reliability of the variables in this study was tested using Cronbach’s alpha to investigate the internal consistency of the scales for the dependent variable, the mediator and the moderator. The Cronbach’s alpha for the dependent variable green purchase intention is a= 0.934, for the mediator green brand image a= 0.935 and for the moderator ad skepticism a= 0.878. The reliability for the scales is considered good at >0.80, so the reliability of the variables is high (StatisticsSolution, 2020).
Table 1. Descriptive statistics and correlations Variable M SD 1 2 3 4 5 6 7 1. Gendera 0.64 0.48 2. Ageb 1.79 0.94 -0.47** 3. Educationc 3.80 1.19 -0.19** 0.33** 4. Exposure to green advertisingd 0.49 0.50 0.02 -0.02 0.02
5. Green purchase intention 3.24 1.12 0.11 -0.08 0.16 0.29** (0.934)
6. Green brand image 2.93 1.14 0.08 -0.06 0.11 0.64** 0.63** (0.953)
7. Ad skepticism 2.72 0.72 -0.03 0.01 0.14 0.25** 0.40** 0.37** (0.878) **. Correlation is significant at the 0.01 level (2-tailed)
*. Correlation is significant at the 0.05 level (2-tailed) N= 199
Note: Cronbach’s a are in parentheses on the diagonal
a 0= male, 1= female, b 1= 18-24, 2= 25-40, 3= 40-64, 4= 65+, c 1= high school graduate, 2= bachelor’s degree, 3= master’s
degree, 4= professional degree or higher, d 0= exposure to non-green advertisement, 1= exposure to green advertisement
4.2 Regression analyses
A multiple regression is carried out with the Process tool in SPSS, for which some assumptions must be met. Firstly, the normality assumption is checked by determining if the residuals of the variables were normally distributed via a P-P plot and by making a histogram. Results showed that the residuals are approximately normally distributed and that there are no outliers. Also, the homoscedasticity assumption is met, since the residuals are equally variable (constant). Furthermore, multicollinearity is not present, because all the variance inflation factors are below 5. Based on these results, it can be assumed that all assumptions for regression are met. 4.2.1 Mediation analysis
In order to test hypothesis 1 to 4, Model 4 of the PROCESS macro of Hayes (2017) was used. Multiple regression analysis was conducted to assess each relationship in the mediation model. The results of the analysis will show the effect of exposure to green advertising on green purchase intention (direct effect c’), the effect of exposure to green advertising on green brand image (a-path), the effect of green brand image on green purchase intention (b-path) and the effects of exposure to green advertising on green purchase intention, mediated by green brand image (indirect effect).
The results, summarized in figure 2, show that exposure to green advertising is negatively associated with green purchase intention (b= -0.437, t(199)= 2.778, p< 0.01). This means that hypothesis 1, exposure to green ads as compared to non-green ads leads to a higher green purchase intention, cannot be confirmed, since there is a negative significant relationship
between the independent variable and the dependent variable. It was also found that exposure to green advertising leads to a higher green brand image (b= 1.447, t(199)= 11.616, p< 0.01). Therefore, hypothesis 2, that exposure to green ads will lead to a more positive green brand image as compared to non-green ads, is accepted. It means that consumers exposed to green advertising have on average 1.447-point higher level of green brand image compared to consumers exposed to a non-green advertisement. Also, green brand image is positively associated with green purchase intention (b= 0.745, t(199)= 10.743, p< 0.01). It can be confirmed that a higher level of green brand image leads to a higher green purchase intention, which corresponds with hypothesis 3.
Because the a-path and b-path are both positive and significant, the indirect effect of exposure to green advertising on green purchase intention, explained by green brand image, must be significant too. The 95% confidence interval for the indirect effect does not include zero, thus there is a significant positive indirect effect of exposure to green advertising on green purchase intention, through green brand image (b= 1.078, 95% CI [0.831; 1.347]). Mediation has occurred at a 95% confidence level.
Altogether, the results of the mediation analysis did support the mediating role of green brand image in the relation between exposure to green advertising and green purchase intention. It can be concluded that hypothesis 4 must be accepted. There is partial mediation in this case, because the direct effect is still significant when introducing the mediator green brand image.
Exposure to green
advertising Green purchase intention
Green brand image
a = 1.447, p < .001 b = 0.745, p < .001
Direct effect c’ = -0.437, p < .006 Indirect effect a*b = 1.078, CI [0.831; 1.347]
Figure 2: Direct and indirect effects of exposure to green advertising on green purchase intention through green brand image
4.2.2 Moderated mediation analysis
In order to test hypothesis 5, it was first analyzed whether ad skepticism has an interaction effect on the relationship between exposure to green advertising and green brand image. This analysis is the first part of the moderated mediation analysis. A multiple regression was used to test the relationship between exposure to green advertising, ad skepticism and green brand image (Model 7, Hayes). The interaction between exposure to green advertising and ad skepticism was found to be insignificant (b= 0.113, t (199) = 0.651, p= 0.516). This model significantly explained 45% of the variance in green brand image. Table 2 summarizes the effects of the moderation analysis.
Table 2. Moderated regression analysis
B se t p
Outcome variable: Green brand image
Constant 2.921** 0.062 47.049 0.000
Exposure to green advertising (GAEXP) 1.324** 0.124 10.661 0.000
Ad skepticism (ADS) 0.337** 0.087 3.873 0.000
Interaction GAEXP x ADS
F(3, 195)= 53.868, R2= 0.453
0.113 0.173 0.651 0.516
Note: ** p<0.01
Hypothesis 5 predicted that the indirect effect of exposure to green advertising on green purchase intention through green brand image was moderated by the level of ad skepticism. In order to test this hypothesis, PROCESS Model 7 (Hayes, 2017) was used, with, exposure to green advertising as the independent variable, green purchase intention as the dependent variable, green brand image as the mediator and ad skepticism as the moderator. The model generated 95% bootstrap confidence intervals for the indirect effect using 5000 bootstrap samples. The 95% confidence interval of the moderated mediation index does include zero, which indicates that there is no significant difference between the indirect effect at low levels of ad skepticism (b= 0.925, 95% CI [0.666,1.216]), moderate levels of ad skepticism (b= 0.985, 95% CI [0.751, 1.235] and high levels of ad skepticism (b= 1.057, 95% CI [0.773, 1.417]. Moreover, the results show no evidence of conditional indirect effects which is different from zero with 95% confidence interval. The relationship between exposure to green advertising and green purchase intention through green brand image, does not significantly decrease when an individual is more skeptic towards advertisements. Therefore, hypothesis 5 is not supported. The results of the moderated mediation analysis are presented in table 3.
Table 3. Moderated mediation analysis for conditional indirect effects of exposure to green advertising on green purchase intention via green brand image, moderated by the level of ad skepticism
Green purchase intention B LLCI ULCI Ad skepticism
Low ad skepticism1 (-0.723) 0.925 0.666 1.216
Moderate ad skepticism2 (-0.008) 0.985 0.751 1.235
High ad skepticism3 (0.849) 1.057 0.773 1.417
Note: 5000 bootstrap samples
5. Discussion and Conclusion
5.1 Summary
This study aimed to examine the influence of green advertising on green purchase intention of consumers. Furthermore, it was studied whether there was an indirect effect of green brand image, on the relationship between exposure to green advertising and green purchase intention and whether this indirect effect was moderated by the level of ad skepticism. The research question that had to be answered is: To what extent mediates green brand image the relationship
between exposure to green advertisements and the intention to purchase green products, and to what extent is this indirect effect moderated by the level of ad skepticism?
5.2 Key findings
The first hypothesis states that exposure to green advertising as compared to non-green advertising leads to a higher purchase intention. The results lend no support for hypothesis 1, which indicates that exposure to green advertising does not increase purchase intention in comparison with exposure to non-green advertising. Moreover, results show that exposure to the non-green advertisement leads to a higher purchase intention. This is contradictory to prior studies, which found evidence that exposure to green advertisements help consumers in making green purchase decisions by creating awareness and informing them about the sustainable features of products or brands (Ansar, 2013; Rizwan et al., 2014; Vermeir & Verbeke, 2005; Ahmad, Shah, & Ahmad, 2009). This opposite result can be explained by an external factor. A number of respondents indicated after the survey that they would buy hand soap anyway, sustainable or not, because of the covid-19 pandemic. Hand soap has become a highly sought-after product during corona times (Business Insider, 2020). Since the non-green advertisement of Dettol emphasized more on the functional attributes of the product, namely killing bacterias, could this be the reason that the non-green advertisement resulted in a higher purchase intention.
Secondly, hypothesis 2 states that exposure to green ads will lead to a more positive green brand image as compared to non-green ads. Based on the results of this study, there was a significant positive relationship found between exposure to green advertising and green brand image of customers, so hypothesis 2 is supported. This means that consumer who were exposed to a green advertisement have a more positive green brand image in comparison to consumers who were exposed to a conventional advertisement. The results were in line with expectations based on previous work, which also claim that green advertising strategy gives consumers more positive perception of the brand, which enhances green brand image (Huang, Yang, & Wang, 2014; Nagar, 2015; Alamsyah et al.,, 2018).
Furthermore, the third hypothesis states that green brand image is positively related to purchase intention. Based on previous work, there were strong expectations that green brand image does increase consumers purchase intentions (Chen, 2009; Bukhari, Rana, & Bhatti, 2017; Kusnandar & Rinandiyana, 2017; Rahmi et al., 2017; Rizwan et al.,, 2014; Wang & Tsai, 2014). This study found a significant positive relationship between green brand image and purchase intention which indicates that the more consumers perceive the brand image as green, the higher their purchase intention is. Therefore, hypothesis 3 can also be supported.
The fourth hypothesis states that the relationship between exposure to green advertising and purchase intention is mediated by the level of green brand image. The results suggest that this is true, so hypothesis 4 can be accepted. This indicates that the relationship between exposure to green advertising and purchase intention can be explained by how green consumers perceive the brand. Previous work about the mediating role of green brand image show similar results (Kusnandar & Rinandiyana, 2017). It is remarkable that there no direct effect of exposure to green advertising on purchase intention has been observed, but the total effect of exposure to green advertising on purchase intention through green brand image is significant. An explanation for this could be that consumers are not attracted to the advertisement itself, which decreases their purchase intention, but are familiar with the brand, which helps in forming a more positive brand image, which in turn could increase their purchase intention (Malik et al., 2013).
Lastly, hypothesis 5, which states that the indirect effect of exposure to green advertising on green purchase intention through green brand image is moderated by the level of ad skepticism. This research did not find statically support for the moderating effect of ad skepticism, so hypothesis 5 must be rejected. This means that when a consumer has a high level of skepticism towards an advertisement after exposure to that ad, it does not mean that the green brand image and the relationship between exposure to green advertising and purchase intention through green brand image decrease. This result is not consistent with prior research, as Obermiller et al. (2015) and Kim & Lee (2009) found that brand beliefs and attitudes towards the advertising are moderated by consumers’ ad skepticism, which in turn could influence consumer purchase intention. It could be possible that respondents were not skeptic about the exposed ads in this research.
5.3 Limitations and future research
There are some limitations to this study that must be acknowledged. First, the data is collected within known circles of the researcher, which implies convenience sampling. The sample is not representative for the population, because about half of the respondents were female students, causing reduced reliability and external validity. Distortion of data can in the future be prevented by conducting the survey over a longer period and on a larger scale than just in the researcher’s circles in order to make the results more generalizable.
Furthermore, the independent variable consisted of two conditions, exposure green advertising and non-green advertising, measured by an experimental design. The advertised brands were existing brands, but the advertisements were constructed by the researcher. This could mean that the variables were controlled in such a way that it guides respondents towards a desirable answer. For an experimental design to be effective and reliable, it must be objective. Manipulation by the researcher reduces objectivity. Subjectivity of the researcher can in the future be prevented by more extensive manipulation check before conducting the main study (Gaille, 2017).
In addition, experimental research measures whether there exist differences between the groups, not why there is a difference (Gaille, 2017). Future research could focus on why there is a difference between exposure to green advertising and non-green advertising on purchase intention. Previous research has demonstrated that a lot of factors influence green purchase intention (Mei, Ling, & Piew, 2012). Participants indicated that not only advertisements determine whether to buy the product or not. This study did not provide enough space to examine multiple factors. Future research could include more variables, such as product involvement, price sensitivity or environmental concern.
5.4 Practical implications
To enhance green purchase intention, this study suggests that marketers should focus on developing and implementing green branding strategies rather than focus on only advertising the green product. Green advertising only is not enough to increase consumers’ purchase intention. Consumers often have choices between similar products from different brands, so marketers must ensure that their brand stands out. A better green brand image compared to competitors can increase sales.
In this study, there was no evidence found that ad skepticism has an effect on green brand image and green purchase intention. Nevertheless, marketers need to be aware of the
effects of greenwashing. When green claims in advertisements does seem untrustworthy, there is a possibility that green brand image and green purchase intention are reduced.
5.4 Conclusion
The increasing concern for the environment has led that companies cannot ignore sustainability anymore. There has been done a lot of research about green marketing and sustainable consumer behavior. However, no research has been done that specifically focuses on the effects of green advertising and how consumers perceive the advertised brand. Therefore, the aim of this study was to explore the effects of exposure to green advertising on green purchase intention with the underlying factors green brand image and ad skepticism.
Hence, the following research question was examined: To what extent mediates green
brand image the relationship between exposure to green advertisements and the intention to purchase green products, and to what extent is this indirect effect moderated by the level of ad skepticism?
The results showed, contrary to expectations, that exposure to green advertising does not directly influence purchase intention, while exposure to green advertising indirectly through green brand image does increase purchase intention. The level of disbelief of the ad, which means how skeptic the consumer is towards the ad, does not have an effect on the results, which means that a consumer with high levels of ad skepticism does not show differences in green brand image and purchase intention in comparison with a consumer with low level of ad skepticism.
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