Ijchm 03 2014 0115
Ijchm 03 2014 0115
Ijchm 03 2014 0115
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IJCHM
27,5
Customer loyalty: exploring its
antecedents from a green
marketing perspective
896 Patricia Martínez
Business Administration Department, University of Cantabria, Santander, Spain
Received 10 March 2014
Revised 10 July 2014
18 September 2014
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developing green marketing strategies, companies can develop and make possible any
exchange to please environmental requirements of customers (Polonsky, 1994). As
Bonilla-Priego et al. (2011, p. 361) state: “this change in environmental behavior is of
particular interest because it could lead to potentially major changes throughout the
hotel industry”.
In the hospitality industry, more and more hotels are developing green marketing
strategies to satisfy the requests environmentally conscious consumers (Hsieh, 2012;
Chan, 2013a). Given that this sector consumes considerable quantities of natural
resources, water and energy (Bohdanowicz, 2005; Chan and Ho, 2006), many hotels make
use of the label “green hotel” as a strategy to catch the attention of customers and attract
them (Brown, 1996; Pizam, 2009). The Web site of the Green Hotels Association (2013)
states that:
[…] green hotels are environmentally-friendly properties whose managers are eager to
institute programs that save water, save energy and reduce solid waste, while saving money,
to help protect our one and only earth.
About 75 per cent of the environmental impacts of hospitality companies are related to
water, energy, perishable products as well as soil, water and air contamination (APAT,
2002). The Green Seal (2012) indicates that (on average) a hotel purchases more products
in seven days than a hundred households in one year. Consequently, hotel managers
have implemented corporate programs aimed at saving natural resources such as water,
decreasing energy consumption, reducing water and air pollution, solid waste and using
resources efficiently (Bohdanowicz, 2005; Hsieh, 2012) to keep at the minimum the
expenditure and to maximize profit, as it has been accepted that these activities result in
cost savings (Bohdanowicz, 2005). For instance, NH Hotels have developed an
interesting initiative named “Ecomeeting”. This initiative consists of organizing
meetings and events taking into account environmental issues guaranteeing a
responsible consumption of resources and materials. Apart from that, NH Hotels give
the possibility of compensating the CO2 emissions generated during the event. Previous
research shows that a number of hospitality companies are interested in green
initiatives only if they reduce costs (Akis, 2001), which signifies that some hotel
managers “go green” to save money rather than to protect the environment. However,
not only hoteliers ought to be responsible for the environmental impacts of hotel firms.
Actually, the efficient implementation of green initiatives within the hotel industry
requires guests’ commitment and support (Tsai and Tsai, 2008). Liu et al. (2012) state
that customers’ decisions regarding buy (or not) green products have a great influence
on green practices.
IJCHM With regard to this, previous studies show customers’ biases toward green
27,5 accommodation because of price and who should fund green policies (Manaktola and
Jauhari, 2007; Ogbeide, 2012). In this sense, extant research indicates that customers are
not eager to pay a higher price to finance green activities (Millar and Baloglu, 2011),
while other studies suggest otherwise (Laroche et al., 2001; Pizam, 2009). In this vein,
some scholars identify customers’ barriers to participation in green hotels such as
898 perceptions of cost cutting (Baker et al., 2014), while others propose that customers
increasingly demand green services in the hospitality industry (Manaktola and Jauhari,
2007). Overall, despite these potential inconsistencies in academic research, the number of
customers willing to seek and stay in green hotels has grown (Deloitte, 2014). Moreover, the
green hotel sector is a market segment on the rise not only because these properties
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differentiate themselves from its competitors but also because they satisfy a need in the
market for more environmentally friendly hotels (Manaktola and Jauhari, 2007).
The relationships among green initiatives, hotels’ overall image and consumer
behavior have a great impact on hotel business because of the intangible characteristics
of hospitality services. Extant research supports that overall corporate image exerts
great influence on customers’ behavior and their purchasing decisions within the
hospitality setting (Chen and Tsai, 2007; Han et al., 2009; Kandampully and Suhartanto,
2000; Lin et al., 2007; Ryu et al., 2012). Despite the many benefits of a favorable image by
hotel companies, only a few studies have explored the influence of green practices and
green overall image on customers’ behavioral intentions in the context of hotel
management. As far as the author knows, no previous studies have explored the
consequences of the image of a green hotel and its role in developing green loyalty. At
the same time, the growing interest of marketing academics and practitioners in
relationship marketing suggests that customer trust and satisfaction are vital to develop
lasting relationships with consumers (Delgado and Munuera, 2005; Kim et al., 2001; Lee
et al., 2009). Connecting these ideas with a green approach to customer loyalty, the
author suggests the following research question: What should hotel companies do to
enhance customer loyalty? Although extant research has investigated relevant aspects of
customer trust, satisfaction, overall image and loyalty, these issues have not been
discussed from a green marketing perspective. Based on the framework developed by
Lavidge and Steiner (1961) – the hierarchy of effects model – the author proposes that
two affective variables, green trust and green satisfaction, mediate the relationship
between green overall image and green loyalty. This research contributes to previous
studies exploring the influence of green overall image, satisfaction and trust on green
loyalty in a hospitality setting. Moreover, if the statistical tests carried out in this
research validate the hypotheses that are proposed, an additional contribution of this
research will be the validation of the hierarchy of effects model in a green marketing
context. By expanding previous studies on customer loyalty in a green context and
exploring the relationships among these constructs, this study offers an assessment of
green marketing strategies within the hotel context to increase green loyalty on the part
of customers.
Conceptual background
The hierarchy of effects model
The author builds the conceptual framework of this research on the principles of the
hierarchy of effects theory. This approach considers that customers normally do not
switch from disinterested individuals to convinced purchases in one instantaneous step
(Lavidge and Steiner, 1961). Instead, customers approach purchases through a
multi-stage process, of which the purchase itself is the final step. Lavidge and Steiner
(1961) divide the stages of customer behavior into three components:
IJCHM (1) the cognitive (or rational) dimension, which refers to customer thoughts and
27,5 beliefs;
(2) the affective (or emotional) dimension, referring to the realm of emotions; and
(3) the conative (or motivational) dimension, referring to customer behavioral
intentions and actions.
900 Companies communicate their green programs and activities primarily through what
Lavidge and Steiner (1961) call “image advertising”, which focus on the steps of
generating attitudes and feelings rather than directly accessing the stage of conative
behavior (loyalty). In this cognitive – affective – conative sequence, green overall image
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is a set of beliefs that determine corporate image. Consecutively, these beliefs determine
affective responses from customers (e.g. green trust and green satisfaction) because of
the cognitive effort to evaluate the company in relation to the cost of being its customer.
Finally, these affective responses affect customer conative or behavioral outcomes, such
as recommendation and repurchase behaviors (e.g. green loyalty).
Along this line, previous studies analyzing the direct effect of green and
environmental issues on green customer behavior have obtained mixed findings.
However, it has been observed than when scholars introduce mediating affective
variables in the study (e.g. green perceived value, green affect and green trust), green
marketing variables always have an impact on behavioral consumer responses (Chen
and Chang, 2013; Ng et al., 2014). Therefore, it seems that the hierarchy of effects model
is more appropriate to understand the effects of green overall image on customer
responses than the study of direct connections between the cognitive and behavioral
phases of the hierarchy of effects model. An explanation could be that given the
relatively high degree of perceived risk associated with services, the competitive
advantages resulting from pursuing green products may not be as direct as the positive
reactions of customers to other corporate associations such as service quality or
functional benefits (Ng et al., 2014) (Figure 1).
existing consumers than to attract new ones. Based on Dick and Basu’s (1994) study,
“green loyalty” is defined in this study as “a consumer commitment to repurchase or
otherwise continue using a green brand”. Finally, the antecedents of green loyalty in the
proposed model are explained in the next section.
Green overall image and its influence on green satisfaction and green
trust
Green overall image
Many scholars and practitioners have shown great interest in the concept of a
company’s image due to its effects on customers’ behavioral decisions (Chen and Tsai,
2007; Han et al., 2009; Kandampully and Suhartanto, 2000; Lin et al., 2007; Ryu et al.,
2012). Overall image is defined by Keller (1993, p. 3) as “a set of perceptions about a
brand as reflected by brand associations in consumer’s memory”. Park et al. (1986) argue
that customers can benefit from overall image of companies as it provides them with
functional, experiential and symbolic benefits. According to these authors, functional
and experiential benefits correspond to product-related attributes, while symbolic
benefits are related to underlying psychological needs of customers such as personal
expression and correspond to attributes that are not related to the product or service.
Based on the previous definition by Keller (1993) and Chen (2010), the present study
suggests a new variable “green overall image” defined as “a set of perceptions of a firm
in a consumer’s mind that is linked to environmental commitments and concerns”.
Previous studies support the influence of overall image on customers’ behavior (Han
et al., 2009; Kandampully and Suhartanto, 2000; Lin et al., 2007; Ryu et al., 2008; Ryu
et al., 2012). For instance, Lin et al. (2007) demonstrated that tourists are highly likely to
choose a tourist destination with a favorable image. In the hospitality setting, Han et al.
(2009) support the relationship between overall image and green behavioral intentions
in terms of word – mouth, visit intention and readiness to pay a higher price. Relating the
concept of green marketing to overall image and customer loyalty, the next hypothesis
is proposed:
H1. Green overall image positively influence green customer loyalty.
According to the hierarchy of effects theory, the affective stage of customer behavior
begins with the evocation of feelings based on the perception of the company (Lavidge
and Steiner, 1961). Following this approach, green overall image is a set of beliefs that
determine corporate image. Consecutively, these cognitive beliefs determine affective
responses from customers (e.g. green trust and green satisfaction) because of the
IJCHM cognitive effort to evaluate the company in relation to the cost of being its customer.
27,5 Finally, these affective responses influence customer conative or behavioral outcomes,
such as recommendation and repurchase behaviors (e.g. green loyalty).
Green satisfaction
Enhancing customer satisfaction is widely recognized as an important element leading
902 to the success of hospitality companies (Bowen and Chen, 2001).Within the highly
competitive hotel industry, which offers homogeneous products and services, hotel
managers must find ways to make their offer to stand out among their competitors. As
Choi and Chu (2001, p. 278) state “hoteliers need to understand their customer’s needs
and meet or exceed these needs”. Overall, the term of customer satisfaction is defined
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based on Mai and Ness’s (1999, p. 863) definition as “a general feeling of pleasure or
gratification experienced by a consumer arising from the ability of a product or service
to satisfy the customers’ expectations, desires and needs”. Following this
characterization, the present study proposes “green satisfaction” as an affective variable
defined as “a pleasure level of consumption-related fulfillment to satisfy customers’
environmental desires, sustainable expectations and green needs”.
As previous studies suggest, overall image and customer satisfaction are positively
related (Chang and Tu, 2005; Kandampully and Suhartanto, 2000; Martenson, 2007). In
this line of thought, several academics consider that overall image is one of the most
reliable cues which signal the ability of hotels to satisfy consumers’ desires and needs
(Kandampully and Hu, 2007). As Andreassen and Lindestad (1998) explain (1998, p. 10):
[…] overall image is believed to create a halo effect on customers’ satisfaction judgment […]
when customers are satisfied with the services rendered, their attitude toward the company is
improved. This attitude will then affect the consumers= satisfaction with the company.
Additionally, Nguyen and Leblanc (2002, p. 244) state that “a favorable image is a
powerful tool […] for improving […] levels of satisfaction toward the company”.
Therefore, the author proposed the next hypothesis:
H2. Green overall image positively influences green customer satisfaction (Figure 2).
Green trust
This study conceptualizes trust as an emotional construct defined as the “willingness to
rely on an exchange partner in whom one has confidence” (Moorman et al., 1992, p. 315).
The present research is based on deep-rooted theoretical approaches from the social
psychology literature using not only cognitive aspects but also affective elements to
Green
Trust
H4
H3
Green H1 Green
Image Loyalty
H6
H2 H5
Green
Figure 2.
Sasfacon
Conceptual model
conceptualize trust. Emotional aspects of trust are considered to be significant in the Customer
hospitality industry due to the fact that customers trust in affective signals from loyalty
companies as a point of reference to evaluate quality (Johnson and Grayson, 2005).
Following the previous definition by Moorman et al. (1992), this research defines “green
trust” as the “willingness to rely on an exchange partner in whom one has confidence
because of its environmental performance”.
As previous studies demonstrate, customer trust is positively influenced by image of 903
companies because corporate associations (e.g. overall image) are able to diminish the
risk perceived by customers while increasing purchase probability (Flavián et al., 2005).
Overall image influence customer behavioral intentions, and extant research has
provided evidence that overall image positively impact customer trust (Mukherjee and
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Nath, 2003). Based on the previous ideas, the more favorable the green overall image, the
higher the confidence customers place in the company due to the feeling generated by
the level of care the company shows about its environmental commitment. Therefore,
the author proposed the following research hypothesis:
H3. Green overall positively influences green customer trust.
Measures
This study uses seven-point Likert scales from 1 to 7 (rating from strongly disagreement
to strongly agreement) to measure the items of the constructs. Green satisfaction was
measured following the methods described by Oliver (1996). Five items based on Chen
(2010) were used to measure green trust. To asses green overall image, five items based
on the study by Cretu and Brodey (2007) were used. Finally, four items based on studies
by Sirdeshmukh et al. (2002) and Zeithaml et al. (1996) were used to measure green
loyalty. The Appendix shows the scales used for each factor. In a pre-fieldwork stage the
questionnaire was scrutinized by several academics experts in hospitality and tourism
to ensure content validity of the measurement instruments. These scholars revised
several aspects of the questionnaire such as the item understandability, legibility,
vagueness and other inconsistencies in the survey (Hair et al., 2010). As a result, the
wording of several items was modified to improve the comprehension of potential
respondents.
Feature N (%)
Customer
loyalty
Gender
Male 190 49.8
Female 192 50.2
Occupation
Student 54 14.1 905
Self-employed 52 13.7
Worker 151 39.4
Retired/pensioner 67 17.5
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Unemployed 21 5.6
Housework 37 9.7
Age
From 18 to 24 years 38 10
From 25 to 34 years 76 19.9
From 35 to 44 years 72 18.8
From 45 to 54 years 72 18.9
From 55 to 64 years 53 13.8
Over 65 years 71 18.6
Education
No education 31 8.1
Basic/elementary/secondary 87 22.9
Baccalaureate/FP/COU/BUP 114 29.8
Associate degree 78 20.3
Higher university 72 18.9 Table I.
Profile of
Source: National Statistics Institute – INE (data from January 2011) respondents
Findings
To assess the psychometric properties of the measurement instruments and test the
proposed hypothesis, several statistical analyses were conducted. Specifically, the
present study follows the structural equation modeling (SEM) procedure developed by
Anderson and Gerbing (1988). Thus, reliability and validity of the measurement scales
were evaluated through a confirmatory factor analysis (CFA) before testing the
conceptual model.
Structural equation
Note: * p ⬍ 0.005 model results
0.212*
Green
0.75 0.65 0.90 0.90
Sasfacon
GL1 GL2 GL3 GL4
Figure 3.
0.89 0.87 0.89 Structural model
GS1 GS2 GS3 estimation
framework for understanding green customer loyalty. These results are in agreement
with past studies using both approaches to explore consumers’ reactions toward green
products or services (Chen, 2010; Kang and Hur, 2012; Hur et al., 2013). Nevertheless, this
study expands previous studies on green marketing and customer loyalty by including
relationship constructs as mediating variables.
Secondly, no prior research investigates the relation between green overall image and
green customer loyalty in the hotel sector. This study demonstrates that green overall
image positively influences not only green customer loyalty but also green trust and
green satisfaction. Moreover, this study provides empirical evidence that green
satisfaction and green trust mediates the relationship between green image and green
loyalty, which is consistent with previous research such as the paper by Lee et al. (2010),
which points to green overall image as a strategic concept that is suitable for generating
not only an overall evaluation of companies but also for arousing affective positive
perceptions of service performances. Fourth, increasing consumer perceptions about
green overall image, trust and satisfaction can help to raise customer loyalty for green
services in the hospitality industry. These results reveal the relevance of environmental
issues in today’s business context and the need for hospitality companies to include
them into their management strategies and policies. The findings demonstrate that
green issues are a key strategic tool, given its essential role in building not only customer
loyalty but also customer trust and satisfaction.
Hotel managers ought to design strategies to raise perception of green image and to
help guests to develop greater levels of green satisfaction and trust to build enduring
relationships with companies. To obtain these outcomes, hoteliers could implement
visible environmental practices such as energy and water conservation initiatives,
waste management systems, recycling programs, using environmentally friendly
products, obtaining environmental certifications (e.g. Green Globe Certification, Energy
Star, Green Seal […]), implementing sustainable building practices or developing
environmental protection initiatives, among others. Moreover, as customers’
perceptions of green overall image, trust and satisfaction might be largely affected by
corporate communications related to green issues, the hotel accommodation industry
should effectively communicate these initiatives to explain the goals of green strategies.
Consequently, hotel managers should emphasize the importance of environmental
issues by promoting green campaigns so as to build up the green overall image of hotels.
For example, NH Hotels’ actively promotes its “Green Rooms” that consist of key drivers
aimed at reducing the environmental impact of its bathrooms. For instance, new
dispensers of paper towels have been installed to achieve a significant reduction in the
amount used. Similarly, traditional taps have been replaced with aerators in 77 per cent
of hotels, while its “Agua de la Tierra” amenities are packaged in containers made of Customer
biodegradable plastic. Finally, the toilets operate with a flushing system fed from loyalty
collected rain water requiring 25 per cent less water than traditional models (Green
Hotelier, 2013). To effectively promote green initiatives, it is highly recommended that
hoteliers develop an integrated communication strategy with multiple information
channels to show the characteristics of a green hotel. For instance, green hotels should
use social media, direct mail, public relations and advertising to communicate their 909
green practices to customers. Specifically, by actively participating in ecological forums
and events, sponsoring environmental programs, increasing their presence in social
networks (e.g. Facebook, Twitter, Youtube, LinkedIn […]) and using in-house
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advertising (e.g. in-house magazines and television channels aimed at customers), hotels
can develop a favorable overall image based on environmental aspects.
In addition, hospitality companies should develop specific programs to educate
employees and customers to increase green trust and satisfaction. In a hotel context,
employees are essential mediators who transmit information from guests to managers
(and vice versa) showing that employees’ knowledge about environmental issues is vital
to enhance green customer satisfaction and trust. Therefore, hoteliers are encouraged to
provide training related to green and environmental issues (e.g. conferences, site visits,
competitions […]) to encourage employees to become involved in a hotel’s environment
program. Similarly, as hotel guests often are unaware of the impacts they have on the natural
environment, it is highly recommended that hotel managers help customers to understand
how they can minimize these negative impacts, for example, by providing information about
environmental issues on public areas of the hotel, hotel rooms, the corporate Web site or
annual reports. Hotel managers should also use other tools to influence customers’
perceptions of the green overall image of hotels such as the visual symbolism of the company
(e.g. corporate brand name, corporate graphic symbols, logo, claim, colors scheme […]).
Therefore, hotel managers should relate some elements of hotels’ visual identity with
environmental aspects to promote the development of a green overall image.
However, and even though hotels successfully perform and implement green
initiatives, guests may under-perceive the green overall image of the hotel (thereby
preventing the development of appropriate levels of green trust and satisfaction). Thus,
it would be advisable for hotel managers to show that they are “doing green” through
advertising and other communication tools to build green associations (e.g. green image)
in customers’ minds. However, hotel managers should perform green communication
campaigns carefully because guests’ reactions to “green washing” could be unfavorable
(Chan, 2013a). In this sense, companies have to ensure that they present and promote
their green attributes through sincere and truthful messages, reducing ambiguity, to
avoid green skepticism.
Furthermore, as experience is necessary to develop green customer trust and
satisfaction, customer will tend to become more trusting and satisfied through recurrent
positive encounters with the service provider. As a result, green hotel managers should
devote financial resources to inform customers about green behaviors of the hotel (e.g.
communication strategies, loyalty programs […]). This could be a powerful incentive to
integrate a green orientation in hotels’ business strategy, considering that green trust
and satisfaction are important determinants of green loyalty. Moreover, given that
green marketing can be a useful instrument to differentiate and position firms,
hospitality companies ought to take advantage of the environmental concerns of
IJCHM customers to benefit from new green niche markets. Nevertheless, the real challenge for
27,5 these firms is to integrate their environmental commitment into their corporate identity
instead of promoting their green products and services (Martínez et al., 2014).
To conclude, the present research stands out the relevance of green marketing
initiatives to achieve sustainable competitive advantages. In the author’s opinion, green
marketing should be an integral part of hospitality firms. The author considers that this
910 integration will be improved when hospitality managers realize that the implementation
of green marketing policies may help firms to reach a situation in which both the
company’s financial performance and the environment will benefit. By implementing
green marketing policies into their corporate strategies hospitality, companies can build
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Appendix
Identification Item
Green image
GI1 This hotel company is regarded as the point of reference of environmental
commitments
GI2 This hotel company has a strong environmental reputation
GI3 This hotel company is successful about its environmental protection
GI4 This hotel company is well-established about its environmental concerns
GI5 This hotel company is trustworthy about its environmental promises
Green trust
GT1 The environmental commitments of this hotel company are generally reliable
GT2 The environmental performance of this hotel company is generally dependable
GT3 The environmental argument of this hotel company is generally trustworthy
GT4 The environmental concerns of this hotel company meet my expectations
GT5 This hotel company is sincere and honest about its environmental protection
Green satisfaction
GS1 The choice of this hotel company due to its environmental commitment makes
me happy
GS2 I consider it is correct to stay in this hotel company because of its
environmental commitment
GS3 I am satisfied with this hotel company because of its environmental
performance
Green loyalty
GS1 I generally choose this hotel company as my first option
GS2 I would stay in this hotel company although other competitors had the same
environmental attributes
GS3 I will choose this hotel company as my first option in the future
Table AI. GS4 I would make positive comments about this hotel company to family and
Measurement scales friends
About the author Customer
Patricia Martínez is a PhD candidate at the University of Cantabria (Spain). She has a doctoral
scholarship financed by the Spanish Ministry of Education, Culture and Sports, and has a loyalty
Master’s degree in Marketing from the University of Cantabria. Her current research interests
include corporate social responsibility, consumer behavior and corporate marketing. Her research
focuses on theoretical and empirical studies in the tourism sector. Her works have been published
in journals of international impact such as International Journal of Hospitality Management,
Journal of Business Ethics, Journal of Travel and Tourism Marketing and Service Business. She 917
regularly participates in several international conferences, such as European Marketing Academy
Conference and International Marketing Trends Conference. Patricia Martínez can be contacted
at: martinezrp@unican.es
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