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Green is the new color of

the season

An experimental study investigating the effects of

sustainability branding for established brands.

Master Thesis in Persuasive Communication 1/30/2015

Name: Sarah Semiramis Saffnauer

Student Number: 10602453

Email: s.saffnauer@gmx.de

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Abstract

Drawing from associative network theory, this experimental study investigated the

effects of a sustainability branding strategy versus a regular branding strategy on consumer

responses (brand attitude, brand equity, green brand equity and willingness to pay a price

premium) towards an established fashion brand. It was furthermore investigated how

sustainability self-identity and prior brand attitude moderate this relationship. Contrary to

expectations the sustainability strategy had a negative effect on brand attitude, but a positive

on brand equity and willingness to pay a price premium. Green brand equity was the only

response measure that was moderated by sustainability self-identity. Furthermore,

sustainability self-identity negatively influenced the relationship between prior brand attitude

and brand attitude. However, the proposed three-way interaction between branding strategy,

prior brand attitude and sustainability self-identity was not found. The present data suggests

that established companies should only cautiously use sustainability branding. Limitations

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Introduction

Sustainability sells: Consumers are willing to pay a premium price for ethically

produced products (Pelsmacker, Driesen and Rayp, 2005), and a marketing strategy focusing

on the “green” aspects of the product increases consumers’ favorable attitude (Hartmann,

Ibanez, & Sainz, 2005). Also the fashion industry, the focus industry in this study, tries to

fight its problems by focusing on sustainability. Sustainable fashion becomes increasingly

important in juxtaposition with fast fashion, that is, cheaply produced apparel with a short life

cycle. How frequent fast fashion scandals lead to serious image damage is depicted by the

media and consumer outcry after a factory in Bangladesh collapsed in which Western fast

fashion companies produced their clothes (The Guardian, February 24, 2014) or after

messages reporting inhumane working conditions were found stitched into clothes of a fast

fashion brand (The Guardian, June 25, 2014). These (PR) catastrophes require fashion brands

to distance themselves from the bad reputation that comes with fast fashion. One possible

solution is a sustainability branding strategy.

But sustainability is a broad concept. There are various definitions of sustainability;

one most frequently cited is from the WCED, which described sustainability as “development

that meets the needs of the present without compromising the ability of future generations to meet their own needs” (WCED 1987, p. 43). Vermeir and Verbeke (2008) explain

sustainability as a construct consisting of economic (fair price for producer and consumer),

ecological (care for natural environment), and social (socially acceptable production

processes) aspects. Thus, sustainability does not only incorporate “green”, that is

environmentally friendly produced products, but also related concepts like fair trade.

According to this definition sustainably produced fashion is characterized, for

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circumstances. But a sustainability branding strategy also has to take the target, the

consumer, into account. After analyzing behavioral data Gilg, Barr, and Ford (2005) found

that there is no average environmental person but that the range is from committed

environmentalists, over mainstream and occasional environmentalist, to

non-environmentalists. Also, Van der Werff, Steg and Keizer (2013a) found that it depends on the

level of environmental self-identity for someone to be intrinsically motivated to act

pro-environmentally. It seems therefore counter-intuitive that everyone would react in the same

way to a sustainability branding strategy. That is, whereas an environmentalist may react

positively towards sustainably branded fashion a non-environmentalist in contrast might not

care at all because he is not intrinsically motivated to do so.

Besides the consumer’s level of environmentalism, another consumer characteristic

that is important for the effect of sustainability branding strategy on consumer response is the

attitude the consumer holds towards the brand prior to exposure to the sustainability strategy.

A sustainability branding strategy might change a negative attitude in a positive direction if

the consumer is concerned with sustainability issues. Hodges and Wilson (1993) explain that

an attitude change can occur when presented information is incongruent to the held attitude;

to resolve this incongruence the attitude is changed. This would mean that, for instance, if a

consumer holds a negative attitude towards a fashion brand and is generally concerned about

sustainability issues and is then confronted with a sustainability branding strategy he might

change his attitude in a positive direction to resolve the incongruence between his negative

attitude towards the brand and his positive attitude towards the sustainability branding.

There has been abundant research into green advertising and branding but this often

comprised only fictional or new brands or just an industry without specific focus on any

brand (e.g., Lee, Hsu, Han, & Kim, 2010; Kalafatis, Pollard, East, & Tsogas, 1999; Lee,

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address this issue the present study uses an established brand, namely the Swedish fashion

house H&M, as an example. The global retailer comes as a natural choice since it is one of

the biggest fashion producers, which indicates that the brand is known and thus, that people

have an attitude towards it. Additionally, it also uses a sustainability branding strategy for

one of its smaller collections, the Conscious collection, which increases the ecological

validity of the study (H&M, 2013).

The current study aims to link the effects of sustainability branding to the personality

trait of sustainability self-identity and to prior brand attitude. More precisely, it is

investigated how sustainability branding shapes the perception of an established brand and if

this effect is moderated by the sustainability self-identity of the consumer and the attitude

held prior to exposure to the strategy.

To the author’s knowledge there is still no clear answer on how a sustainability

branding strategy works for an established company, whether it works differently for people

interested in the issue and whether their prior brand attitude plays a role in the relationship.

First, this paper can offer valuable insights for PR departments of fashion companies, as it

investigates if sustainability strategies contribute to the company’s reputation. Second, and

more importantly, scientifically supported success of sustainability strategies could help to

increase the production of sustainable products, which is very desirable from a societal point

of view since they come with sustainable production, fair trade and improved working

conditions.

Theoretical Framework

Sustainability branding and associative network theory

Companies are facing increasing legislative and societal pressure to produce in a way

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pressure is to put the focus on the sustainable actions of the company and to brand the

company as sustainable. Derived from the sustainability definition of Vermeir and Verbeke

(2008) mentioned above, sustainability branding would encompass brand communication that

focuses, for instance, on the environmental performance or on the fair trade activities of a

brand and its products. Brands, more generally, are defined as associative network in the

consumer’s long-term memory (Franzen, 2009). This indicates that if the brand is perceived as sustainable it should share the same favorable associations that are linked to its

sub-concepts like environmentally friendly or fair trade behavior in the memory network.

One way to explain how a brand can in the end profit from sustainability branding is

by taking a closer look at how brands are stored in the memory. The associative network

theory describes how the memory works (Plaut, 1995; Anderson, 1983). Information is stored

in nodes and different nodes are interlinked. Nodes which are frequently activated together

share more links than nodes that represent information that is not commonly activated

together. If a cue activates one of the nodes the activation can spread from the activated node

to the other nodes that are closely linked to it and make the stored information more

accessible. This indicates that through the node network brands have certain meanings

attached to them. The brand Chanel might, for instance, be closely linked to luxury, and a

brand that is branded as sustainable should belong to a network that has the same sustainable

focus.

Studies have shown that sustainable behavior is linked in memory with the feeling of

pride (Onwezen, Bartels, & Antonides, 2014) or the belief of doing the right thing (Arvola,

Vassallo, Dean, Lampila, Saba, Lähteenmäki, & Shepherd, 2008). So if people behave in a

sustainable manner, the node of sustainable behavior is activated and the activation can

spread to the nodes of pride and doing the right thing, as a result, these feelings are elicited in

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node network. Thus, when the person, for instance, sees the brand or thinks of it not only is

the node of the brand elicited but also its network, i.e., a feeling of pride or the belief of doing

the right thing.

The positive feelings that are elicited when confronted with a sustainably branded

product are a prerequisite for a positive brand attitude. Hartmann et al. (2005) found that

green branding leads to more favorable attitudes towards the brand. This supports once again

the findings of Onwezen et al. (2014) and Arvola et al. (2008) that sustainable behavior is

linked to pride and the feeling of doing the right thing. Thus acting sustainable, i.e., buying a

sustainable brand elicits these positive feelings and in turn leads to a more favorable attitude

towards the brand. Arguably, green branding is not the same as sustainability branding but

since Vermeir and Verbeke (2008) describe “green” or ecological awareness in their

sustainability definition as sub-concept of sustainability similar effects are expected –

especially as most consumers do not know the difference.

These positive feelings that can be linked to the brand through sustainability branding

are also desirable from a brand equity point of view. Brand equity, the value of a brand, can

be defined in various ways. From a financial perspective brand equity describes the cash

flows that a company receives additionally compared to when the products are sold

unbranded (Simon & Sullivan, 1993). Keller (1993) describes consumer based brand equity

with the difference in response towards the marketing of a brand when the consumer knows

the brand versus when he does not know it. This means that consumers react differently to,

for instance, a T-shirt with a well-known logo than to a shirt without this logo. This concept

is based on brand awareness and brand image, meaning that for high brand equity the brand

does not only need to be known, but consumers also need to have a positive attitude towards

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sustainability branding. Thus, sustainability branding influences brand attitude positively

which in turn influences brand equity.

Brand equity describes the general value of a brand. To put sustainability into focus

Chen (2010) incorporates the idea of environmentally friendly branding into the concept of

brand equity. He introduced the new concept of green (i.e., environmentally friendly) brand

equity and describes it as “a set of brand assets and liabilities about green commitments and

environmental concerns linked to a brand, its name and symbol that add to or subtract from the value provided by a product or service.” (p. 310). This means that the green value of a

brand is constructed in the consumers mind through knowledge about, for instance,

environmentally friendly production processes, or the usage of organic materials. But at the

same time the green value of the brand can be perceived as very low when nothing or only

negative things are known about its environmental performance. Thus, the greener a brand is

perceived by the consumer the more valuable it is in green brand equity terms. Green brand

equity is closely related to brand equity, however unlike brand equity it only captures a small

aspect of the whole brand, therefore it cannot be assumed that the same relationship between

sustainability branding, brand attitude and brand equity applies. It is therefore expected that

sustainability branding directly influences green brand equity and does not take the detour

over brand attitude.

Sustainable claims do not only influence the value of and attitude towards a brand by

activating positive feelings but they also influence the consumer’s willingness to pay a price

premium. As de Pelsmacker et al. (2005) found in their study on willingness to pay for

fair-trade coffee, consumers are willing to pay on average 10 percent more for a coffee with a

fair-trade label on it than for a conventional coffee. A small number of respondents, the so

called fair-trade lovers, were ready to pay a price premium of 36 percent. Of course the brand

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ready to pay more for a branded product than for an unbranded one (Lassar, Mittal, &

Sharma, 1995). However, this relationship goes over the scope of the study and is not further

taken into account.

These different research examples show that sustainability or its sub-concepts

influence the consumer in his perception of the brand and his actual behavior. In the present

study about the Conscious collection of H&M and their sustainable actions, it is therefore

expected that a sustainability branding strategy leads to a more favorable consumer response

than a regular branding strategy that does not involve sustainability.

Hypothesis 1: The sustainability branding strategy leads to a higher willingness to

pay a price premium, to higher green brand equity, and to a more favorable brand

attitude which in turn leads to higher brand equity than the regular branding strategy.

Sustainability self-identity

The sustainability self-identity of the consumer influences, how sustainable a

consumer behaves. A related concept that has been discussed in connection with

sustainability branding and marketing is environmental self-identity. It describes according to

Van der Werff, Steg and Keizer (2013b) the extent to which a person sees himself as

environmentally friendly. However, environmental self-identity does not fully grasp the

meaning of sustainability: the concepts of social and economic sustainability are disregarded.

Thus, a person with a strong sustainability self-identity is expected to put emphasis on for

instance organic food, use of green energy, and fair trade. But since environmental

self-identity is a sub-concept of sustainability self-self-identity it is expected that the effects which are

related to environmental self-identity also hold true for sustainability self-identity.

A number of studies tested environmental self-identity for instance as a mediator

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consideration, and environmental preferences, intentions, and behavior (Van der Werff et al.,

2013b), or as an obligation-based intrinsic motivation that influences environmentally

friendly behavior (Van der Werff et al., 2013a). Whitmarsh and O’Neill (2010) found

environmental self-identity as a significant predictor for a number of environmentally

friendly behaviors ranging from waste reduction, regular water and domestic energy

conservation, to eco-shopping and eating. It can be derived from these studies that

environmental self-identity is a personality trait and hence influences inwardly how

consumers make decisions.

How this personality trait influences behavior should also be discussed in connection

to the associative network theory. The theory suggests that people act environmentally

friendly to elicit positive feelings that are connected in the memory to this kind of behavior

(Plaut, 1995; Anderson, 1983). Additionally, as derived from Van der Werff et al.’s (2013a;

2013b) and Withmarsh’s (2010) research people can have the personality trait of

environmental self-identity. This trait shows itself through an intrinsic motivation to act

pro-environmentally. So people with strong environmental self-identity do not only act

environmentally friendly to elicit feelings of pride and doing the right thing (Onwezen et al.,

2014); Arvola et al., 2008) but also because they are intrinsically motivated to do so, because

sustainable behavior is part of their personality. Consequently, a brand which people with

strong environmental self-identity perceive as sustainable can trigger these positive feelings

and should be additionally preferred due to their personality.

Why people follow their personality with actions can be explained in a number of

ways. People can act according to their self-identity to prevent an anticipated cognitive

dissonance (Akerlof, & Dickens, 1982) or to avoid anticipated guilt (Van der Werff et al.,

2013a). People want to be consistent, thus not acting sustainable while having a strong

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inconsistency, or to guilt. Thus, people with strong sustainability self-identity prefer to act

accordingly. However, people can also carry out sustainable behavior because they anticipate

the pride that they will feel when acting according to their environmental self-identity

(Onwezen et al., 2014). In sum, people with a strong sustainability self-identity are more

likely than people with a weak sustainability self-identity to have a positive attitude towards a

sustainable brand, to value it higher and also to be willing to pay a higher price for it because

of reasons like consistency with their personality, anticipated guilt when not acting according

to the personality or anticipated pride when acting accordingly.

De Pelsmacker et al.’s (2005) study took a closer look at the relationship between

sustainability self-identity and willingness to pay a price premium for a sustainable product.

People with a strong sustainability self-identity are closely linked to the fair-trade lovers de

Pelsmacker et al. (2005) identified. The researchers clustered the respondents in their study in

fair-trade lovers who show a clear preference for the fair-trade label, fair-trade likers, whose

preferences are balanced but still with the fair-trade label as the most important one, then

flavor lovers for whom flavor is the most important choice criteria, and brand lovers who

have a strong focus on the brand they are purchasing. The two latter ones are rather negligent

towards fair-trade. Fair-trade lovers were ready to pay up to a 36 percent price premium for

fair-trade coffee and fair-trade likers were still ready to pay 17 percent more. The flavor

lovers and brand lovers were ready to pay only four and three percent more, respectively.

Thus it can be derived that a sustainability self-identity positively influences consumers’

willingness to pay a price premium for the sustainable product, because they not only elicit

positive feelings that are linked in the memory to sustainable behavior but they also avoid

guilt and a cognitive dissonance in doing so.

As mentioned above (Withmarsh & O’Neill, 2010; Van der Werff et al., 2013a; Van

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behavior and thus it is expected that sustainability self-identity has the same effects. Based on

the previous research reviewed, this study expects to find that the positive influence of a

sustainability branding strategy on brand attitude, brand equity, green brand equity, and

willingness to pay a price premium is boosted by a high sustainability self-identity. A low

sustainability self-identity is not expected to lead to unfavorable evaluations of sustainably

branded products, because consumers have learnt through the environmental trend in society

to associate green with good. But it is expected that the positive effect of a green branding

strategy is magnified for people with a high sustainability self-identity. Therefore it is

hypothesized:

Hypothesis 2: The effect of the sustainability branding strategy is moderated by

sustainability self-identity. People with high sustainability self-identity will report a

higher brand attitude, brand equity, green brand equity, and willingness to pay a price

premium after exposure to the sustainability branding strategy than people with low

sustainability self-identity. No moderation effect by sustainability self-identity is

expected in the control group.

Interaction between condition, prior brand attitude, and sustainability self-identity

As described in the introduction, companies like H&M suffer from scandals linked to

fast fashion. Not every consumer might therefore have a positive attitude towards the

Swedish fashion house. Hartmann et al. (2005) found in their study that green branding leads

to a more favorable brand attitude, however, they did not investigate if people were positive

or negative towards the brand before being exposed to the green strategy. This gives rise to

questions like whether sustainability branding only works when people are not negatively

predisposed towards the brand, or whether sustainability self-identity plays a role when a

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Already in 1955 Osgood and Tannenbaum explained how attitude change may arise.

They argue that attitude change depends on whether congruent or incongruent information

qualifies the prior attitude. The attitude changes to resolve incongruity, and moves towards

congruity. A person has, for instance, a negative attitude towards H&M. He is then

confronted with information about the sustainable behavior of the brand, which is important

to the person because he has a strong sustainability self-identity. Thus the person experiences

an incongruity between his negative attitude towards the fashion retailer and his positive

attitude towards the information he received. Consequently, the attitude changes in the

positive direction to resolve this incongruity. Hodges and Wilson (1993) also summarize

reasons for attitude change. They report that attitude change occurs when reasons come to

mind that are incongruent with the hold attitude. To resolve this conflict the attitude is

changed. Both studies report that an attitude change does not occur when the new information

is not incongruent. Congruent information supports the already hold attitude but does not

change it.

The rationale of the two studies can be applied to the present study to qualify the

proposed three-way interaction of prior brand attitude, sustainability self-identity, and

condition. A positive attitude towards H&M is not challenged by a sustainability branding

strategy, because the valence of the information is also positive. Sustainability self-identity

should not qualify this relationship because even people who are not interested in sustainable

actions are not against them. Even if they are sceptic due to their low sustainability

self-identity they should not be motivated enough to challenge the information because no

incongruity forces them to do so. The only change expected in this model is that a negative

prior brand attitude gets challenged by the sustainability strategy which is qualified by a high

sustainability self-identity. If sustainability concerns are not important to the person there is

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between his negative attitude and the presented sustainability branding strategy. However, if

sustainability concerns are important to the person there is reason for attitude change because

the incongruity between the sustainability branding strategy and the hold negative attitude

must be resolved. As a result the person’s attitude shifts from a negative to a more positive

direction. Thus the following hypotheses are derived:

Hypothesis 3.1: If a person who holds a negative prior brand attitude and who has a

high sustainability self-identity is presented with the sustainability branding strategy

then his attitude changes in a positive direction.

Hypothesis 3.2: No attitude change is expected when the person has either (1) a

positive prior brand attitude, high sustainability self-identity and is presented with the

sustainability branding strategy; (2) a positive prior brand attitude, high sustainability

self-identity and is presented with the regular branding strategy; (3) a negative prior

brand attitude, high sustainability self-identity and is presented with the regular

branding strategy; (4) a positive prior brand attitude, low sustainability self-identity

and is presented with the sustainability branding strategy; (5) a positive prior brand

attitude, low sustainability self-identity and is presented with the regular branding

strategy (6) a negative prior brand attitude, low sustainability self-identity and is

presented with the sustainability branding strategy; or (7) a negative prior brand

attitude, low sustainability self-identity and is presented with the regular branding

strategy.

Table 1 offers an overview over the different hypotheses.

Hypotheses Prior brand attitude Sustainability self-identity Branding Strategy Attitude change

H3.1 - + Sustainable Attitude change

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H3.2.2 + + Regular No attitude change

H3.2.3 - + Regular No attitude change

H3.2.4 + - Sustainable No attitude change

H3.2.5 + - Regular No attitude change

H3.2.6 - - Sustainable No attitude change

H3.2.7 - - Regular No attitude change

Table 1: Hypotheses 3 regarding attitude change

The conceptual model offers an overview of all Hypotheses made. Hypothesis 1

describes the main effect of condition on consumer response (for brand equity mediated via

brand attitude). Hypothesis 2 shows how sustainability self-identity moderates this main

effect and Hypothesis 3 depicts the proposed three-way interaction between condition, prior

brand attitude and sustainability self-identity.

Fig. 1: Conceptual model

Method

Participants

187 people participated in the study, 58.8 percent of the participants were female and

the age ranged between 20 and 60 years. The mean age was M = 25.28, SD = 4.94. The

participants were from 27 different countries with Germans being the biggest group (60.4

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Design and procedure

The study used a 2 (stimulus: sustainable vs. regular) by 2 (sustainability self-identity:

low vs. high) by 2 (prior brand attitude: low vs. high) between subjects factorial design. After

the participants gave informed consent they were asked demographical questions (gender,

age, and their country of origin). This was followed by the measurement of prior brand

attitude. In order to prevent hinting participants that the study is about the fashion brand

H&M they also had to state their attitude towards the fashion brands Zara, Mango and

Abercrombie & Fitch. H&M was placed second between Zara and Mango in the list.

Participants were then asked to indicate their sustainability self-identity. This was followed

by the presentation of the stimulus material.

Participants were randomly assigned to either the sustainability branding strategy or

the regular branding strategy. After reading the information they were asked to indicate their

brand equity, their green brand equity and their willingness to pay a price premium.

Depending on which stimulus they were presented with they either had to indicate their

willingness to pay a price premium for a pullover from the sustainability collection or from

the regular collection. The last question was the second brand attitude measure. Here

participants only had to indicate their attitude towards H&M. Participants were thanked for

their participation and were given the opportunity to write a comment about the study.

Stimulus material

The stimulus material for the sustainability branding strategy consisted of information

about the H&M Conscious collection, their commitments and one example action that H&M

does to follow the commitments. Also two pictures with male and female models wearing

clothes from the Conscious collection were incorporated. The material for the regular

branding strategy consisted of information about H&M’s business concept, the collections

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both phrased as commitments and were kept as similar as possible. Also, the same two

pictures as in the sustainability stimulus were incorporated in the regular stimulus. To

enhance ecological validity the presented information about the sustainability collection was

from H&M’s official website; all used pictures were from official H&M campaigns. To keep

the stimuli as similar as possible the material for the regular branding strategy was phrased by

the researcher but only with information found on the H&M website. Also the amount of text

was similar with 192 words in the stimulus for the sustainability branding strategy and 198

words for the regular one.

Fig. 2: Stimulus material for sustainability branding strategy (left) and for regular branding

strategy (right)

To ensure that the sustainability strategy is perceived as more sustainable than the

regular strategy the stimuli were pretested. One group evaluated the sustainability stimulus on

a seven-point Likert scale (totally disagree – totally agree) regarding the three concepts hip

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(economic sustainability), environmentally friendly, more beneficial to the environment than

other brands (environmental sustainability), socially acceptable production processes (social

sustainability)), the other group did the same for the regular branding strategy. The concepts

hip and durable were retrieved from Madrigal and Boush (2008), the items measuring

sustainability were created by the researcher with respect to the sustainability definition by

Vermeir and Verbeke (2008). Only differences for the concept of sustainability are important

for this research, however to avoid producing desirability effects when only asking about this

concept the other two concepts were incorporated as well. The respondents also had to

indicate their gender, age, and nationality.

Twenty students participated in the pretest. Eighty percent were female, the mean age

was M = 21.5 years, SD = 2.37, and 60 percent of the participants were Dutch. The principal

component analysis revealed one factor with an eigenvalue of 2.53 and an explained variance

of 63.23 percent. The item “more beneficial to the environment than other brands” was

removed to increase the scale reliability from Cronbach’s alpha = .78 to Cronbach’s alpha =

.80. Equal variances could be assumed for the independent sample T-test with F = 1.88, p =

.186 for Levene’s test for equality of variances. There was no significant difference in the

scores for the sustainable stimulus (M = 3.90, SD = 0.83) and the regular stimulus (M = 3.06,

SD = 1.20); t(18)= -1.80, p = .089. However the means go in the proposed direction and the

insignificant results could be due to the small sample size.

However, as a consequence of the pretest the sustainable stimulus was made stronger

through reporting higher numbers for H&M’s sustainable actions (e.g. 55.8 percent of

sustainable produced cotton was increased to 65.8 percent); also the instruction in the

questionnaire was made clearer that people should use the presented information to guide

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Measures

(Prior) Brand attitude was measured on a seven-point semantic differential scale. The

items used to describe the brand were good – bad, like very much – dislike very much, and

pleasant – unpleasant (Gardner, 1985). The brand attitude measured prior to exposure to the

stimulus revealed one factor (eigenvalue = 2.58) in the principal component analysis with an

explained variance of 86.12 percent. The scale’s reliability was excellent with a Cronbach’s

alpha of α = .92.

The brand attitude construct that was measured after the presentation of the stimulus

also had one factor (eigenvalue = 2.73) in the principal component analysis and explained

91.01 percent of variance. The scale was very reliable with a Cronbach’s alpha of α = .95.

Brand equity was measured with the overall brand equity scale introduced by Yoo and

Donthu (2001). The construct was measured with four items on a seven-point scale (totally

disagree – totally agree): “It makes sense to buy H&M instead of any other brand, even if

they are the same”, “Even if another brand has the same features as H&M, I would prefer to buy H&M”, “If there is another brand as good as H&M, I prefer to buy H&M”, and “If another brand is not different from H&M in any way, it seems smarter to purchase H&M”.

This specific brand equity scale was chosen for this research because the measurement of the

construct “Green brand equity” by Chen was based on this scale. The principal component

analysis revealed one factor with an eigenvalue of 3.26 and an explained variance of 81.42

percent. Reliability was excellent with a Cronbach’s alpha of α = .92.

Green brand equity was measured on a seven-point scale (totally disagree – totally

agree) with four items: “It makes sense to buy H&M instead of another brand because of its

environmental commitments, even if they are the same”, “Even if another brand has the same environmental features as H&M, I would prefer to buy H&M”, “If there is another brand’s environmental performance as good as H&M’s, I prefer to buy H&M”, and “If the environmental concern of another brand is not different from that of H&M in any way, it

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seems smarter to purchase H&M”. The items were retrieved from Chen (2010). The

principal component analysis revealed one factor with an eigenvalue of 3.03 and an explained

variance of 75.62 percent. The reliability was good with Cronbach’s alpha of α = .89.

Like in the article of Strahilevitz (1999) willingness to pay a price premium was not

measured in absolute numbers but in ratios. Respondents were either presented with a piece

of apparel either framed as from the regular or from the sustainable collection depending on

in which condition they were in. The price for the apparel was 30 Euros. The respondents

than read that H&M plans to raise its prices due to the risen costs of their cotton supply. They

were asked to indicate on a scale from 0 – 100 percent how much more they were willing to

spend for this piece of apparel.

Sustainability self-identity was measured on a seven-point scale (totally disagree –

totally agree) with the items of the construct environmental self-identity. The items were

“Acting environmentally friendly is an important part of who I am”, “I am the type of person

who acts environmentally friendly”, and “I see myself as an environmentally friendly person”. The scale was retrieved from Van der Werff et al. (2013b). Additionally, the scale

was complemented with four items from the fair trade scale from Tanner and Wölfing Kast

(2003). “Solidarity with third-world countries is important to me”, “I would refrain from

buying products if I were not sure whether the workers were fairly paid”, “When buying a product, I pay attention to fair trade labels”, and “I would be willing to pay a higher price to support small growers from third-world countries”. Overall, the chosen items should capture

the concepts of environmental, social, and economic sustainability. The principal component

factor analysis with Varimax rotation revealed two components with an eigenvalue above 1.

The first component (eigenvalue = 4.36) and the second component (eigenvalue = 1.13)

explained a total of 87.45 percent of variance. The scale was very reliable with a Cronbach’s

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Results

Treatment check

94 participants were assigned to the regular condition, 93 to the sustainability

branding condition. Participants in the regular condition took on average M = 44.10 seconds,

SD = 36.12, to look at the stimulus and participants in the sustainability condition took

around M = 81.03 seconds, SD = 231.15, to look at the sustainability stimulus. The

differences were not significant, t(185) = -1.53, p = .128. When the outlier of 2251.18

seconds in the sustainability condition was excluded from the analysis the mean was reduced

to M = 57.44, SD = 41.25. These differences were now significant, t(184) = -2.35, p = .020.

Even though the word count was almost equal the stimulus in the regular condition seems to

have been a faster read.

Main effect of condition on consumer response

Hypothesis 1 proposed a main effect of condition on brand attitude, green brand

equity, willingness to pay a price premium, and an indirect effect on brand equity mediated

via brand attitude. However, the conducted MANOVA revealed no significant differences for

condition on brand attitude and green brand equity. The evaluation of brand attitude in the

sustainability condition (M = 3.42, SD = 1.42) and the regular condition (M = 3.64, SD =

1.63), F(1, 185) = 0.99, p = .321 did not differ significantly. As did not green brand equity

(Sustainability: M = 3.23, SD = 1.50; Regular: M = 3.07, SD = 1.35), F(1, 185) = 0.58, p =

.447. But the MANOVA did reveal that the willingness to pay a price premium differed

significantly between the sustainability condition and the regular condition. Respondents who

were exposed to the sustainability stimulus were willing to pay a significantly higher price

premium for a pullover from the sustainable collection (M = 1.63, SD = 1.14) than

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the regular collection (M = 1.16, SD = 1.10), F(1, 185) = 8.13, p = .005. Respondents were

willing to pay 16 percent more for a pullover from the sustainable collection; this means they

would pay 34.80 Euros for the presented pullover (price set at 30 Euros). In contrast,

respondents in the regular condition would only pay 12 percent more, which are 33.60 Euros

for a pullover from the regular collection (price also set at 30 Euros).

The proposed indirect effect of condition on brand equity via brand attitude was

investigated with Process Model 4 by Hayes (2012). A bootstrapping analyses with 1000

samples revealed no mediation through brand attitude (indirect effect = 0.10, SE = 0.11, 95%

CI [-0.09, 0.32]). In a next step, prior brand attitude was controlled. The bootstrapped

mediation analysis with 1000 samples (Process Model 4) now revealed a significant indirect

effect = .09, SE = .06, 95% CI [.01; .26]. Thus, when prior brand attitude is held constant,

condition has a positive indirect influence on brand equity via brand attitude.

Prior brand attitude was controlled for the relationship between condition and brand

attitude, green brand equity, and willingness to pay a price premium. A MANCOVA with

prior brand attitude as covariate revealed a significant effect of condition on brand attitude

measured after exposure to the stimulus, F(1, 184) = 6.54, p = .011. Unexpectedly, people in

the regular condition reported a significantly higher brand attitude towards H&M (M = 3.64,

SD = 1.63) than people in the sustainability condition (M = 3.42, SD = 1.42). No significant

differences were found for condition on green brand equity when controlling for prior brand

attitude, F(1, 184) = 0.89, p = .347. Controlling for prior brand attitude had no influence on

the willingness to pay a price premium.

Despite the significant effects for willingness to pay a price premium and brand

equity, Hypothesis 1 can only be partially accepted due to the insignificant effect of condition

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Moderation effect of sustainability self-identity

Hypothesis 2 proposed a moderation effect of sustainability self-identity on the

relationship between condition and consumer response. This was investigated for brand

attitude, green brand equity, and willingness to pay a price premium with Process Model 1 by

Hayes (2012). There was no significant interaction for condition and sustainability

self-identity on brand attitude (interaction condition x sustainability self-self-identity, p = .452; Model

summary: ΔR2 = .02, F(3, 183) = 0.52, p = .668), and also not for willingness to pay a price premium (interaction condition x sustainability self-identity, p = .169; Model summary:

ΔR2

= .07, F(3, 183) = 5.95, p < .001, significant positive influence of condition, p = .009).

The proposed moderation of sustainability self-identity on the indirect effect of

condition on brand equity was investigated with Process Model 7 (Hayes, 2012). A

bootstrapping analyses with 1000 samples revealed no moderated mediation (index = 0.04,

SE = 0.04, 95% CI [-0.01, 0.16]).

There was, however, a significant moderation of the relationship between condition

and green brand equity by sustainability self-identity when prior brand attitude was

controlled for, ΔR2 = .24, F(4, 182) = 16.61, p < .001. When sustainability self-identity is low, i.e., one standard deviation below the mean, there is a non-significant negative

relationship between condition and green brand equity, b = 0.41, 95% CI [1.03, 0.21], t =

-1.29, p = .198. Also at the mean value of sustainability self-identity, there is a non-significant

positive relationship between condition and green brand equity, b = 0.12, 95% CI [-0.24,

0.49], t = 0.66, p = .508. The moderation effect only occurs for high levels of sustainability

self-identity, i.e., one standard deviation above the mean, b = 0.65, 95% CI [0.08, 1.22], t =

2.27, p = .025. When sustainability self-identity is high, people in the sustainability condition

rate the green brand equity of H&M significantly higher (M = 3.85), than people in the

regular condition (M = 3.20), p = .025. Figure 3 shows the interaction between sustainability

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Fig. 3: Relationship between condition and green brand equity, moderated by sustainability

self-identity.

The Johnson-Neyman method reveals that the moderation holds also true for very low

levels of sustainability self-identity. When sustainability self-identity is between 1 and 2.81

(on a scale from 1 to 7) it has a significant negative moderating influence on the relationship

between condition and green brand equity (at SSI value level 1: b = 1.44, 95% CI [2.59,

-0.29], t = -2.47, p = .015; at SSI value level 2.81: b = -0.65, 95% CI [-1.31, 0.00], t = -1.97, p

= .050). The negative interaction indicates that people with a very low sustainability

self-identity rate the green brand equity of H&M in the sustainability condition lower than in the

regular condition. This is not depicted by the figure because the very low levels of

sustainability self-identity were far below the mean and the low levels depicted in the figure

start one standard deviation below the mean of sustainability self-identity, at 3.38 which is

already too high according to the findings of the Johnson-Neyman method.

High levels of sustainability self-identity have a significant positive moderating effect

on the relationship between condition and green brand equity. The significant moderation

starts at the value level of 5.25, b = 0.42, 95% CI [0.00, 0.84], t = 1.97, p = .050. The positive

interaction means that for high levels of sustainability self-identity (starting point: 5.25)

H&M’s green brand equity is rated significantly higher in the sustainability condition than in

2.94 3.20 2.54 3.85 0 1 2 3 4 5

GBE at low levels of SSI GBE at high levels of SSI

G re en B ra nd E qu it y

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the regular condition. None of the other relationships became significant when prior brand

attitude was controlled for.

Due to the insignificant moderation effect on brand equity, willingness to pay a price

premium, and brand attitude, Hypothesis 2 can only be partially accepted.

Three-way interaction between condition, prior brand attitude and sustainability self-identity

Fig. 4: Process Model 3 by Hayes (2012)

Hypothesis 3 proposed a three-way interaction between condition, prior brand

attitude, and sustainability self-identity on brand attitude. Namely, hypothesis 3.1 proposed

that this would only lead to an attitude change if a person has a negative prior brand attitude,

a high sustainability self-identity, and is exposed to the sustainability stimulus. This was

investigated with Process Model 3 by Hayes (2012), ΔR2 = .77, F(7, 179) = 101.14, p < .001, however, no three-way interaction between condition, prior brand attitude, and sustainability

self-identity on brand attitude was found, p = .582. Prior brand attitude significantly

influences brand attitude measured after presentation of the stimulus, p < .001, as does

condition, p = .037, and sustainability self-identity, p = .003. Also a two-way interaction

between prior brand attitude and sustainability self-identity proofed to be marginally

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Coefficient Standard Error t p

Constant 3.54 .06 62.04 <.001

Condition -.24 .11 -2.10 .037

Prior brand attitude (Att1) .87 .04 21.42 <.001 Sustainability self-identity (SSI) -.13 .04 -2.98 .003 Cond x Att1 -.01 .08 -.13 .900 Cond x SSI -.12 .09 -1.33 .184 Att1 x SSI -.03 .02 -1.68 .095

Cond x Att1 x SSI -.02 .04 -.55 .582

Table 2: Model overview. Effect on brand attitude measured after exposure to the stimulus.

Condition has a negative significant effect on brand attitude, b = -.24, p = .037,

namely, when the model goes from the regular condition (coded as 0) to the sustainability

condition (coded as 1) brand attitude is reduced. This confirms again the main effect of

condition on brand attitude that was found when prior brand attitude was controlled for. Prior

brand attitude has a positive effect on brand attitude, b = .87, p < .001, which is of course

logical since it is a repeated measure. Sustainability self-identity has a negative effect on

brand attitude, b = -.13, p = .003, meaning that the higher a person ranks on sustainability

self-identity the lower his or her brand attitude towards H&M is.

The interaction between prior brand attitude and sustainability self-identity negatively

influences brand attitude at a marginal significant level, b = -.03, p = .095. As shown in

figure 4 above, sustainability self-identity moderates the controlled influence of prior brand

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negative influence on the relationship between prior brand attitude and brand attitude, i.e., the

higher the sustainability self-identity of a person the less positive the effect of prior brand

attitude on brand attitude. So when two people have the same prior brand attitude about

H&M, but one has a high sustainability self-identity and the other one a low sustainability

self-identity, then the one with the high sustainability self-identity will show a less positive

attitude after exposure to either of the stimuli than the person with the low sustainability

self-identity.

Figure 5 depicts the proposed but non-significant three-way interaction between

condition, prior brand attitude, and sustainability self-identity. The values of brand attitude in

the regular and in the sustainability condition are compared within different levels of prior

brand attitude (Att1) and sustainability self-identity (SSI). The slopes in figure 5 are not

significant; however, they hint the negative effect of sustainability self-identity. High levels

of sustainability self-identity always lead to the least positive brand attitude within their prior

brand attitude categories (high, low). This effect becomes more pronounced in the

sustainability condition than in the regular condition. Nevertheless, the three-way interaction

of condition, prior brand attitude, and sustainability self-identity is not significant, p = .582.

Fig. 5: Proposed (non-significant) three-way interaction between condition, prior brand

attitude, and sustainability self-identity on brand attitude.

5.12 4.86 2.38 2.28 5.05 4.42 2.26 1.95 0 1 2 3 4 5 6

Att2 at low levels of SSI and high levels of Att1

Att2 at high levels of SSI and Att1

Att2 at low levels of SSI & Att1

Att2 at high levels of SSI and low levels of Att1

B ra nd At tit ud e (At t2 )

(28)

The figure also clearly shows that the hypothesis has to be rejected, the condition that

was hypothesized to produce an attitude change (key: Att2 at high levels of SSI and low

levels of Att1) has actually the lowest levels of brand attitude (Att2) and there is also no

attitude change since the differences between the slopes in this three-way interaction model

are not significant.

Thus, hypothesis 3 has to be rejected: there was no attitude change based on an

interaction of condition, prior brand attitude, and sustainability self-identity, however an

interaction of prior brand attitude and sustainability self-identity was marginally significant.

Discussion

Results overview

Fig. 6: Overview over all significant and marginally significant effects.

Figure 6 displays an overview of the main results. A positive main effect of condition

on brand equity (via brand attitude) and willingness to pay a price premium was found, as

well as a negative main effect of condition on brand attitude. There was also a significant

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proposed three-way interaction between condition prior brand attitude and sustainability

self-identity did not hold true, however an interaction between prior brand attitude and

sustainability self-identity was found.

Differences in effects on brand attitude and brand equity

The main effect of condition on willingness to pay a price premium is in line with the

expectations. Respondents in the sustainability condition were willing to pay 16 percent more

for sustainably produced apparel; this also is in line with the fair trade likers (17 percent

more) de Pelsmacker et al. (2005) identified. The way willingness to pay a price premium

was measured made sure that participants in the sustainability condition only saw a piece of

apparel framed as from the sustainable collection and participants in the regular condition

saw the same piece but framed as from a regular condition. Since there was no direct

comparison between a sustainably produced piece of apparel and a regular one within one

group of participants it can be excluded that the price is just set higher through the

comparison. The participants in the sustainability group were willing to pay a significantly

higher price for the piece of sustainably produced apparel than the participants in the regular

condition for the regular apparel. Therefore it can be concluded that people think that it is

worth paying more for sustainably produced apparel.

That condition had a positive indirect effect (via brand attitude) on brand equity is

also in line with the expectations. The sustainability branding strategy significantly increased

the value of the brand. However, it was quite surprising that condition had a negative effect

on brand attitude, meaning, that when people were exposed to the sustainability branding

strategy they reported a significantly lower attitude towards H&M than when people were

exposed to the regular branding strategy. Some comments that participants gave about the

study might bring clarity to that issue: “is it true that H&M plans to become more fair trade?”

(30)

comitmeent to envrotment or etc they still capitalist product that on the way they creat,

distribution, accumulation give bad impact on the third country or human being. For me us

the shirt do not use the brand” (sic), and “For me, environmental friendliness and fair trade

are two separate things. Even if H&M uses organic cotton, the conditions for their workers in

Bangladesh etc. do not improve from that.” In summary, the comments can be interpreted in

a way that they criticize the sustainability branding strategy as not credible and as

green-washing.

This interpretation is supported by various studies. Carrete, Castaño, Centeno, and

González (2012), for instance, report in their study that their respondents perceive

sustainability claims as deceptive and that companies only use them out of self-interest to be

able to ask for higher prices. Crane (2000) explored the “green backlash” with case studies

and interviews with managers and he confirmed the assumptions regarding credibility. Due to

the widespread use of (often unproven) green claims consumers have become very suspicious

towards it. This would explain why brand attitude is lower in the sustainability condition.

People do not believe the sustainability branding strategy.

This is also in line with the way how Hartmann et al. (2005) explain attitude

formation towards sustainability branding under the Elaboration Likelihood Model (ELM). It

could be assumed that participants processed the information more deeply because of how the

information, i.e., the stimuli, was presented in the study. After the instructions to carefully

read the information because questions are going to be asked later about it the participants

only saw the information on their screen. This is not like in a real life setting when an

advertisement has to compete with other stimuli for attention, thus it seems likely that the

participants processed the given information more deeply than they usually would. On this

route of deeper processing, however, sustainability branding can only lead to a positive

(31)

Cacioppo, 1986). Apparently, as the comments indicate, this was not the case, thus brand

attitude was lower in the sustainability condition.

This is of course a problem for established brands who want to change their image.

They have their image often for years and are thus known for certain things, in H&M’s case

this could be cheap fashion. Information that differs from this perception, like the given

information about H&M’s sustainable production processes, might therefore be regarded as

not credible. This assumption is further supported by the negative direct effect of

sustainability self-identity on brand attitude and also by the negative interaction effect of

sustainability and prior brand attitude on brand attitude, both in the three-way interaction

model. The higher the sustainability self-identity of the participants the less positive was the

influence of prior brand attitude, meaning that people who are concerned with sustainability

had a significantly lower attitude towards H&M. In sum, it seems problematic for an

established brand like H&M to rebrand itself as sustainable because it might be too far from

its brand core, i.e., cheap fashion.

The negative effect on brand attitude and the positive effect on brand equity of

condition might seem contradicting at a first glance. However brand equity is measured in

comparison with any other brand (e.g. “It makes sense to buy H&M instead of any other

brand, even if they are the same”). Of course H&M invites comparison with other fashion

giants like Zara for instance. Participants in the sustainability condition might not have been

totally convinced by H&M’s sustainable actions, however, in comparison with other brands

like Zara, H&M could be perceived as a brand which is at least doing something. These are,

of course, just assumptions.

For future research it would be interesting to look for one thing at the credibility of

big established companies, and for another thing to measure brand equity not in comparison

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could be also interesting to use a big brand for which sustainability branding would seem

more believable. A brand, for example, which does not produce in third-world countries but

in Europe.

Sustainability self-identity and prior brand attitude as moderators

Sustainability self-identity moderates the relationship between condition and green

brand equity. People with a high sustainability self-identity did rate the green brand equity of

H&M higher when they were exposed to the sustainability branding strategy than when

exposed to the regular branding strategy. This was in line with the expectations. It was

measured similarly to brand equity in comparison with any other brand. Nevertheless, it is

surprising that sustainability self-identity did not moderate the relationship of condition and

any of the other consumer response measures. However, green brand equity is the only

response measure that is really concerned about the “green factor”. Therefore, it seems

logical that people who are concerned with the environment (high sustainability self-identity)

value a brand higher (in comparison with any other brand) that is concerned with the

environment (sustainability vs. regular condition).

Brand attitude, brand equity, and willingness to pay a price premium are all not

moderated by sustainability self-identity. For these three there is only a significant main

effect of condition, i.e., the branding strategy has an effect (positive (and indirect via brand

attitude) for brand equity and willingness to pay a price premium, negative for brand

attitude), however this effect occurs regardless of the sustainability self-identity levels of the

consumer. Generally speaking, consumers are willing to pay a significantly higher price for a

sustainably branded product, consumers value a brand higher in comparison to any other

brand if it engages in sustainability branding and consumers report a slightly more negative

(33)

sustainability self-identity of a consumer does not play a role for variables that are not

directly related to sustainability.

When the three-way interaction was tested a not-proposed two-way interaction of

prior brand attitude and sustainability self-identity was found. Thus, prior brand attitude does

not moderate the relationship of condition on brand attitude (the three-way interaction and the

interaction between condition and prior brand attitude were non-significant). The direct effect

of prior brand attitude on brand attitude, however, is moderated by sustainability self-identity.

In contrast to the moderating role sustainability self-identity plays on green brand equity, the

interaction with prior brand attitude is negative, i.e., sustainability self-identity makes the

positive effect of prior brand attitude on brand attitude less positive. As already explained

above, this could be due to credibility issues of already established brands. In other words,

when the (high) sustainability self-identity of a person is taken into account his attitude

towards H&M is reduced. Sustainability and H&M seem not to go well with each other.

Practical implications

This study was conducted to shed light on the workings of sustainability branding for

established brands. The sustainability branding strategy led to a higher willingness to pay a

price premium, a higher brand equity and (for people with high sustainability self-identity) to

a higher green brand equity, however, antithetical to the expectations the sustainability

branding strategy led to a lessened brand attitude compared to a regular branding strategy. As

indicated above, this could be due to credibility issues. An established brand has not a blank

slate like a new brand, and might be therefore less credible. Compared with other brands, the

sustainability branding increases the value of the brand; but when focusing on a sustainability

strategy the information given should be credible and also be perceived as credible in order to

(34)

2000). Additionally, the strategy and consumer response should be monitored closely to be

able to make changes during the campaign.

The higher willingness to pay a price premium for a sustainably branded product is

good news for the industry. People are willing to pay more for sustainably produced

products, and this demand could in turn magnify sustainable production processes and

increase working conditions.

Limitations

One limitation of the study is the made assumptions based on some comments of

participants, namely that sustainability branding has a negative effect on brand attitude due to

credibility issues of the established brand. It of course makes sense, but the credibility of the

brand was never measured in this study and thus, this is just an assumption that requires

investigation in further studies.

Another limitation is the way brand equity and green brand equity were measured.

They were measured in comparison with other brands. The consideration of “any other

brand” might have been the reason for the diverging results of brand equity and brand

attitude. This also should be investigated in future studies.

A major limitation is the way prior brand attitude was measured. Due to the time

constraints of this study is was not possible to actually measure it prior to the main study. It

was only possible to measure it prior to the exposure of the stimulus. Of course it was mixed

with demographics and other attitude filler questions but it cannot be completely excluded

that the participants’ answers were distorted because they were primed with what to expect.

One last limitation is due to the experimental design of the study. No long term

effects could be measured. All measured effects are based on one exposure. Therefore it

cannot be concluded that after multiple exposures to a sustainability branding strategy all

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Conclusion

This study investigated how sustainability branding influences the consumer response

towards an established brand and also took the personality trait of sustainability self-identity

into account. While research in this field was thus far driven by studies using fictional brands

or just industries without focus on specific brands (e.g., Lee et al., 2010; Kalafatis et al.,

1999; Lee, 2008) this study focused on a well-established brand. This changes the focal point

completely because in this scenario did not only the sustainability branding have an effect but

also the attitudes the consumers already held towards the brand. This study furthermore

confirmed that a sustainability branding strategy should be used carefully because if the

brand and the strategy together are not seen as believable image damage in form of lowered

attitudes towards the brand can result. Lastly, this study showed that the personality trait of

sustainability self-identity is a factor that should not be neglected. Even if it only moderated

the relationship between branding strategy and green brand equity it had, however, also an

effect on brand attitude and is therefore an important factor for the success or failure of a

(36)

Literature

Akerlof, G. A., & Dickens, W. T. (1982). The economic consequences of cognitive

dissonance. The American Economic Review, 72(3), 307-319.

Anderson, J. R. (1983). A spreading activation theory of memory. Journal of verbal learning

and verbal behavior, 22(3), 261-295.

Arvola, A., Vassallo, M., Dean, M., Lampila, P., Saba, A., Lähteenmäki, L., & Shepherd, R.

(2008). Predicting intentions to purchase organic food: The role of affective and

moral attitudes in the Theory of Planned Behaviour. Appetite,50(2), 443-454.

Carrete, L., Castaño, R., Felix, R., Centeno, E., & González, E. (2012). Green consumer

behavior in an emerging economy: confusion, credibility, and compatibility. Journal

of Consumer Marketing, 29(7), 470-481.

Chen, Y. S. (2010). The drivers of green brand equity: green brand image, green satisfaction,

and green trust. Journal of Business Ethics, 93(2), 307-319.

Crane, A. (2000). Facing the backlash: green marketing and strategic reorientation in the

1990s. Journal of Strategic Marketing, 8(3), 277-296.

De Pelsmacker, P., Driesen, L., & Rayp, G. (2005). Do consumers care about ethics?

Willingness to pay for fair‐trade coffee. Journal of consumer affairs, 39(2), 363-385. Franzen, G. (2009). Brand portfolio and brand architecture strategies, SWOCC book series

49. Amsterdam: SWOCC.

Gardner, M. P. (1985). Does attitude toward the ad affect brand attitude under a brand

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Gilg, A., Barr, S., & Ford, N. (2005). Green consumption or sustainable lifestyles?

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