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BULL ET IN OF THE GEORGIAN NATIONAL ACADEM Y OF SCIENCE S, vols. 9, no. 1, 2015
Management
Explain The Relationship Between Green Brand Image,
Green Satisfaction and Green Trust and Factors Affecting
on Green Brand Equity
Elmira Nazari*, Behroz Ghasemi*, Soheil Sarmad Saeidi*
*Department of Management, Central Tehran Branch, Islamic Azad University, Tehran, Iran.
ABSTRACT. Today, environmental sustainability for making goals in favor of the beneficiaries in the
society is highly considered. Since environment conservation is more important in the world, selling
green products has increased. As a result, the customers have a tendency to pay more money for the
green products. Therefore, the present paper applies the structural equations model and the partial
least squares approach in order to study the relation among the variables of the green brand image,
green brand satisfaction, and trusting the green brand in association with the perceived awareness of
the green brand, the perceived quality of the green brand, and the green brand loyalty. The research
results show that there is a direct and positive relation among the “green brand image”, “green brand
trusting and satisfaction”, “ perceived quality of the green brand”, loyalty to the green brand”, and “
awareness of the green brand”. Therefore, it is true to say that the green brand image is positively and
indirectly in relation with the perceived quality of the green brand, the loyalty to the green brand, and
the awareness of the green brand via the green brand satisfaction and trusting. According to the
results, the main hypothesis of the research related to the significant relation among the brand image,
the green trust, the green satisfaction, and the components of the green brand equity.© 2015 Bull.
Georg. Natl.Acad. Sci.
Key words: green marketing, brand equity, structural equations, partial least squares.
INTRODUCTION
Today, environmental sustainability has the priority for making goals for different beneficiaries in the society.
Moreover, it is seriously associated with the humans’ health. The environmental concern about the global warming
is the main issue for the consumers. Therefore, many of the companies consider this condition as an opportunity and
they want to use it (Khandoker & Mahbubul, 2011). For some products such as the electronics and household
appliances, green marketing seems to be more important than it used to be. Majority of the companies attempt to
develop the green technologies and the green products, and to emphasize these concepts in their advertisements.
Ottman (1992) declares that if the companies wish to successfully apply the green marketing, their environmental
ideas and concepts should be in association with all aspects of marketing. As a result, developing the current
concepts of marketing and branding in the form of green forms is necessary. If the companies are able to provide the
products and services that meet customers’ environmental needs, the customers will be more interested in the goods
and services. At the beginning of the environmental age, the companies must find opportunities to improve the
environmental performance of their products so that they could enhance their brand equity. As a result of the
increase of global environment conservation, the selling of green products has increased. As a result, the customers
have a tendency to spend more money on the green products (vhen, 2008). The green marketing or the
environmental marketing is a tool for the development compatible with the environment and the enhancement of the
brand image (Khandoker & Mahbubul, 2011). For the five following reasons, the companies develop green
marketing: following the environmental pressures, competitive advantage, improving the organization image,
reaching new opportunities or markets, and increasing the product equity. As Chen declares, applying the green
marketing could increase the equity and intangible value of the brand. Though the previous studies had paid
© 2015 Bull. Georg. Natl. Acad. Sci.
488
E.Nazari
attention to the discussions related to brand; however, Chen (2010) has been the first person to introduce it regarding
the green and environmental aspects. The present paper follows the previous attempts(Chen, 2012;Papista, &
Krystallis,2013) to understand how much could the green image, green satisfaction, and green trust increase the
customer’s awareness of the green brand, customer’s perceived quality of green brand, and customer’s loyalty to the
green brand. The main purpose of the present paper is to determine the relations among the green brand satisfaction,
green brand image, the green brand trust and the awareness of the green brand, the green perceived quality, and the
loyalty to the green brand.
RESEARCH BACKGROUND
The green economics is a new issue that is changing at a high speed. Generally, green businesses follow four tasks:
 To protect the environment
 To follow the family’s rights
 To provide the training opportunity and to make an obvious career path
 To include an age, sex, racial, and geographical variety( Hadizadeh et al., 2012)
The green business might be associated with the social justice and the environmental motivations such as decreasing
greenhouse gases and other environmental pollutants, using renewable energy resources, acting for more efficiency,
protecting natural resources and energy, minimizing wastes, and making jobs in the societies that confront
deficiencies (Chen, 2010). The green businesses could be small or large and they could be owned by men and
women at any age, from any race, and social-economic situation. Green businesses are usually local and it means
that goods and services are provided in a local area. This feature allows them to reduce carbon pollutants, to make
local jobs, and to support the society (Chen, 2010). Chen (2010) asserts that the better the green brand image, the
more the enjoyment level of happiness related to the consumption would be, as a result, the environmental needs,
constant expectations, and the green needs would be met. In his study, he indicated that there was a positive relation
between the green brand image and the green brand trust in the electronics industry. He showed that the greener the
green brand image, the more dependence on the brand would be. Flavian’s study (2005) indicates that the brand
image might affect the involved individuals’ decision making, moreover, there is a positive relating between the
brand image and the customers’ trust (Flavian et al., 2005). Qasim and Abdolah (2010) worked on a research with
the purpose of experimentally comparing the relations among the perceived quality of services, satisfaction, trust,
and the loyalty in the e-commerce in the Malaysia and Qatar cultures, moreover, they confirmed the effect of
satisfaction on trust. Moreover, Zoya and Wormith (2006) studied the effect of brand satisfaction and the brand
trust. Pappu and Quester (2006) indicated that there was a positive relation between the brand satisfaction and
awareness, and the perceived quality and the loyalty to brand. Moreover, the study done by Kim (2008) emphasized
the positive effect of customer’s satisfaction on awareness, perceived quality, and loyalty to the brand. Jamal and
Goode (2001) indicated that the brand image affected causing satisfaction, while brand satisfaction affected causing
brand preference. Tolba (2011) showed that the brand satisfaction affected the brand loyalty and preference.
Delgado et al. (2005) and also Chen (2010) confirmed that trust was an important factor based on which the relation
was formed. The trust led to the increase of awareness, the perceived quality, and the loyalty to brand. Moradi and
Zarei (2011) worked on the research with the purpose of assessing moderating impact of the country of origin on the
relation between awareness of brand, perceived quality of brand, loyalty to brand, and the brand preference and
brand purchase aim. They explicitly confirmed the relation between the brand awareness, the perceived quality of
brand, the loyalty to brand, and the two mentioned variables. Papista, Krystallis (2013) presented a theoretical
framework of the relations among the customer value, green brands, the quality of relations and the cost in their
study. Moreover, they indicated the effective factors on the relations between the green brands and the customer
value in their green marketing.
Bull. Georg. Natl. Acad. Sci., vols. 9, no. 1, 2015
Explain The Relationship Between Green Brand Image, Green Satisfaction and Green Trust and Factors Affecting on Green Brand Equity
Green trust
489
Awareness of green brand
Perceived quality of green
brand
Green brand image
Loyalty to green brand
Green satisfaction
Figure 1: Research theoretical model (Chen, 2010)
RESEARCH METHODOLOGY
Regarding purpose, it is an applied research, regarding information collecting method, it is a field-survey study, and
regarding descriptive results of the study, it is a study based on correlation. In this research, the library method
(using books, essays, and related materials) is applied for collecting information related to the research background
and literature. Moreover, the field method with the help of five-item Likert scale questionnaire is used to collect
information in order to test the research hypotheses. In this research, the structural equations model is used to
analyze hypotheses and to study the total fitness of the conceptual model. In the structural equations modeling, the
adaptation of research data and the conceptual model is studied to see whether it has the proper fitness, moreover, it
tests the significance of the relations in the fitness model. The statistical population of the research includes the
customers of LG and Samsung household appliances. Since the confidence level of 95 percent in a sample
population of 384 people is enough for studying a society with the members ranging from 100000 to 5000000
people, the sample size is considered equal to 384 people assuming that the customers’ number in the statistical
society is included in the mentioned range (Hadizadeh Moqadam et al., 2012). The sampling method is a simple
random sampling and the questionnaire was delivered to the people. According to the type of the research and the
necessity of determining simultaneous effecting of the independent variables on the dependent variables, the
technique of structural equations is used. The approach of partial least squares is also used for analyzing data, and
the PLS graph is applied to test the hypotheses. In this research, the method of partial least squares is applied to
investigate the validity and reliability of the measuring tools and also to study the relations and hypotheses of the
research. In order to study the reliability of the components, three criteria of reliability of each of the questions, the
composite reliability of each of the components, and the average variance extracted (AVE2) (table 1) have been
applied (Seyed Abbaszadeh et al., 2012).
Bull. Georg. Natl. Acad. Sci., vols. 9, no. 1, 2015
490
E.Nazari
Table 1: Composite reliability, factor load, average variance extracted, and Cronbach’s alpha
Component
Factor
load
Cronbach’s
alpha
Composite
reliability
Green trusting1
Green trusting2
Green trusting3
Green trusting4
Green trusting5
Green trusting6
Green trusting7
Green image1
Green image2
Green image3
Green image4
Green image5
Green image6
Green satisfaction1
Green satisfaction2
Green satisfaction3
Green satisfaction4
Green satisfaction5
Green satisfaction6
Awareness of brand1
Awareness of brand2
Awareness of brand3
Awareness of brand4
Awareness of brand5
Perceived quality1
Perceived quality2
Perceived quality3
Perceived quality4
Perceived quality5
Loyalty to brand1
Loyalty to brand2
Loyalty to brand3
Loyalty to brand4
Loyalty to brand5
Loyalty to brand6
Loyalty to brand7
Loyalty to brand8
Loyalty to brand9
Loyalty to brand10
Loyalty to brand11
Loyalty to brand12
0.7791
0.8059
0.8648
0.8185
0.8186
0.7788
0.7857
0.8062
0.6823
0.8157
0.7736
0.835
0.7296
0.835
0.8242
0.8835
0.8524
0.7956
0.8035
0.6451
0.558
0.7464
0.7706
0.7704
0.7831
0.8356
0.8282
0.8342
0.7731
0.7419
0.7483
0.7995
0.8238
0.8243
0.7162
0.8384
0.856
0.862
0.8293
0.7898
0.7012
0.911
Bull. Georg. Natl. Acad. Sci., vols. 9, no. 1, 2015
Variable
0.929
Average
variance
extracted
0.653
0.863
0.9
0.601
Green image
0.909
0.931
0.694
Green satisfaction
0.74
0.828
0.494
Awareness of brand
0.869
0.906
0.658
Perceived quality
0.945
0.954
0.634
Loyalty to brand
Trust
491
Explain The Relationship Between Green Brand Image, Green Satisfaction and Green Trust and Factors Affecting on Green Brand Equity
In order to study the validity of the components, it is suggested that the square root of AVE of a component must be
more than its correlation with other components (Chin, 1988). It shows that the correlation of a component with its
indicators is more than its correlation with other components. Table 2 shows the results related to investigating the
validity of the tools.
Table 2: Correlation matrix and the square root of the average variance extracted associated with each of the
research variables
Loyalty to
brand
Perceived
quality
0.796
Awareness
of brand
Green
satisfaction
Green image
Green
trusting
0.808
Green trusting
0.775
0.656
Green image
0.833
0.586
0.754
0.703
0.638
0.564
0.379
0.811
0.755
0.56
0.573
0.503
Green
satisfaction
Awareness of
brand
Perceived quality
0.593
0.691
0.745
0.623
0.633
Loyalty to brand
RESEARCH FINDINGS
As it was mentinoed in the methodology of the research, the partial least squares makes it possible to determine the
research hypotheses via investigating the path coefificents and the values of the R2 determined variance (Vinzi et
al., 2010). Therefore, bootstrapping method (including 200 sub-samples) is applied to calculate values of T statistics
in order to determine the significance of the path coeffiicents. The path coefificents are used to determine the portion
of each of the predictor variables in determining the considered variable variance, moreover, the determination
coefficient values indicate the determined variance of the considered variable by the predictor variables.
0.282
Green trust (0.48)
Green brand image
0.239
0.254
0.372
Awareness of green brand (0.453)
0.361
Perceived quality of green brand (0.346)
0.454
0.78
0.403
Green satisfaction (0.618)
0.579
Figure 2: Final theoretical model of the research
Loyalty to green brand (0.593)
(
RESULTS OF THE RESEARCH HYPOTHESES
Regarding the obtained results of the research, the hypotheses are explained as follows:
Hypothesis 1: there is a significant relation between green trust and green satisfaction. The results of testing the
hypothesis indicate that the green satisfaction has a positive and significant effect on the green trust. According to
the obtained results of the research model, it is observed that the path coefficient between the green satisfaction and
the green trust approximately equals 0.36.
Hypothesis2: there is a significant relation between green brand image and green satisfaction. The results of testing
the hypothesis indicate that the green satisfaction has a positive and significant effect on the green brand image.
Bull. Georg. Natl. Acad. Sci., vols. 9, no. 1, 2015
492
E.Nazari
According to the obtained results of the research model, it is observed that the path coefficient between the green
satisfaction and the green brand image approximately equals 0.78.
Hypothesis 3: there is a significant relation between green brand image and green trust. The results of testing the
hypothesis indicate that the green brand image has a positive and significant effect on the green trust. According to
the obtained results of the research model, it is observed that the path coefficient between the green brand image and
the green trust approximately equals 0.37.
Hypothesis 4: there is a significant relation between green trust and awareness of green brand. The results of testing
the hypothesis indicate that the green trust has a positive and significant effect on the awareness of green brand.
According to the obtained results of the research model, it is observed that the path coefficient between the green
trust and the awareness of green brand approximately equals 0.28.
Hypothesis 5: there is a significant relation between green trust and perceived quality of green brand. The results of
testing the hypothesis indicate that the green trust has a positive and significant effect on the perceived quality of the
green brand. According to the obtained results of the research model, it is observed that the path coefficient between
the green trust and the perceived quality of the green brand approximately equals 0.24.
Hypothesis 6: there is a significant relation between green trust and loyalty to green brand. The results of testing the
hypothesis indicate that the green trust has a positive and significant effect on the loyalty to green brand. According
to the obtained results of the research model, it is observed that the path coefficient between the green trust and the
loyalty to green brand approximately equals 0.25.
Hypothesis 7: there is a significant relation between green satisfaction and awareness of green brand. The results of
testing the hypothesis indicate that the green satisfaction has a positive and significant effect on the awareness of
green brand. According to the obtained results of the research model, it is observed that the path coefficient between
the green satisfaction and the awareness of green brand approximately equals 0.45.
Hypothesis 8: there is a significant relation between green satisfaction and perceived quality of green brand. The
results of testing the hypothesis indicate that the green satisfaction has a positive and significant effect on the
perceived quality of green brand. According to the obtained results of the research model, it is observed that the path
coefficient between the green satisfaction and the perceived quality of green brand approximately equals 0.4.
Hypothesis 9: there is a significant relation between green satisfaction and loyalty to green brand. The results of
testing the hypothesis indicate that the green satisfaction has a positive and significant effect on the loyalty to green
brand. According to the obtained results of the research model, it is observed that the path coefficient between the
green satisfaction and the loyalty to green brand approximately equals 0.57.
According to table 3, the determination coefficient for the dependent variables has been determined. The results
show that approximately half of the green trust changes are predicted by the green brand satisfaction and the green
brand image. Approximately, 60 percent of the green satisfaction changes are also predicted by the green image.
About 45 of the changes of the awareness of the green brand is also predicted by the green trust and green
satisfaction. Almost 34 percent of the changes of the perceived quality of the green brand is predicted by the green
trust and green satisfaction. Approximately, 60 percent of the changes related to the loyalty to the green brand is also
predicted by the green trust and green satisfaction. According to the mentioned results, the green image positively
and indirectly affects the three variables of the awareness of the green brand, the perceived quality of the green
brand, and the loyalty to the green brand. According to the obtained results of the test, the final model of the
research has been represented in table 3.
Bull. Georg. Natl. Acad. Sci., vols. 9, no. 1, 2015
Explain The Relationship Between Green Brand Image, Green Satisfaction and Green Trust and Factors Affecting on Green Brand Equity
493
Table 3: Path coefficients of the research conceptual model
Hypothesis
result
confirm
T
Path coefficient
Hypothesis
37873
687.0
confirm
2870
68370
confirm
28..
68300
confirm
7820
680.0
confirm
3802
6803.
confirm
2803
68027
confirm
7870
68727
confirm
0870
68763
confirm
03867
6827.
there is a significant relation between
green trust and green satisfaction
there is a significant relation between
green brand image and green
satisfaction
there is a significant relation between
green brand image and green trust
there is a significant relation between
green trust and awareness of green
brand
there is a significant relation between
green trust and perceived quality of
green brand
there is a significant relation between
green trust and loyalty to green brand
there is a significant relation between
green satisfaction and awareness of
green brand
there is a significant relation between
green satisfaction and perceived
quality of green brand
there is a significant relation between
green satisfaction and loyalty to green
brand
687.
6800.
68723
68370
682.3
green trust
green satisfaction
awareness of green brand
perceived quality of green brand
loyalty to green brand
CONCLUSION
The results of the research shows that the brand image, the green satisfaction, and the green satisfaction influence
the perceived quality of the green brand, the loyalty to the green brand, and the awareness of the green brand. The
results of the previous studies partially confirm the results obtained from the present paper. Qasim and Abdolah
confirmed the relation between satisfaction and trust. Chen (2010) declares that green brand image and green trust
are important factors for increasing awareness, perceived quality, and loyalty to the brand. Hou and Wall (2005)
declare that the green brand image affects the increase of environmental awareness. Shahroudi et al. (2014) assert
that the factors affecting the equity include green satisfaction, green loyalty, green trust, and tendency to the green
brand. Moreover, they declare that green satisfaction has a positive effect on the green loyalty and the tendency to
green brand. Moreover, green trust, tendency to green brand, and green satisfaction have a positive effect on the
loyalty to green brand. Finally, it is declared that green loyalty has a positive effect on the brand equity.
Amari et al. (2012) show that the effect of brand image on the brand equity is not considerable, while the positive
effect of brand personality and mental image on the brand equity is average. The results of studies done by
Hadizadeh et al. (2012) shows that the green brand image has a positive and direct effect on the green brand
satisfaction and green brand trust. Moreover, the green brand satisfaction has a positive and significant effect on the
green brand trust, green brand equity, and brand preference. Furthermore, trusting the green brand has a positive and
significant effect on the green brand equity. Parhizkar et al. (2013) show that there is a relation between the brand
trust, the perceived value of a brand and the total value of it. However, there is not a direct relation between the
brand image, the brand fame and the consumer’s loyalty. In another research study, Bahreinizadeh and Tavasoli
(2013) indicate that the customer’s equity and the customer’s satisfaction directly affect the customers’ loyalty.
Furthermore, the equity and brand mark indirectly affect the customer’s loyalty. According to the confirmation of
the research hypotheses, it could be concluded that the brand image, green trust, and green satisfaction have positive
Bull. Georg. Natl. Acad. Sci., vols. 9, no. 1, 2015
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E.Nazari
and significant effects on the perceived quality of the green brand, loyalty to the green brand, and awareness of the
green brand. In fact, the previous results and the results of the present paper indicate that the three variables of the
brand image, green trust, and green satisfaction lead to the enhancement of the brand equity. According to the results
of investigating the research hypotheses, the suggestions based on the hypotheses testing would be represented as
follows:Since there is a positive and direct relation between the variable of green satisfaction and the variables of
green trust, perceived quality of green brand, loyalty to green brand, and awareness of green brand, the companies
could take actions such as making value for the product considering the customer’s cost, decreasing product price if
possible, and meeting all the customers’ needs regarding their expectations in order to increase the level of green
trust, perceived quality of the green brand, loyalty to the green brand, and awareness of the green brand. Since there
is a positive and direct relation between the variable of green brand image and the variables of green trust and green
satisfaction, the companies could make their products superior regarding environment, put emphasis on the
environmental characteristics of the product in comparison with the competitors, adapt the brand with the
customers’ mentality, make a distinguished character in comparison with other green brands in order to increase the
level of green trust of the company. Since there is a positive and direct relation between the variable of green trust
and the variables of the perceived quality of the green brand, loyalty to green brand, and awareness of green brand,
the companies could make products compatible with the environment not to harm it, be honest with the customers,
pay attention to the customers’ and the society’s environmental concerns, and pay attention to the customers’
complaints in order to increase the level of the perceived quality of the green brand, loyalty to the green brand, and
awareness of the green brand in the companies.
SUGGESTIONS
The following suggestions are presented to the researchers who wish to have relevant research studies:




A study on the effect of green marketing strategies on the brand equity
A study on the effect of green marketing strategy on the green brand image, brand equity, and brand purchase preference
A study on the effect of word of mouth marketing on the green brand image and green brand trust.
A study on the effect of advertisement and research and development investigation on the brand equity
 A study on the effect of production strategies and marketing strategies on the brand equity
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