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Company environmental performance and consumer purchase intentions


Grimmer, MR and Bingham, TW, Company environmental performance and consumer purchase intentions, Journal of Business Research, 66, (10) pp. 1945-1953. ISSN 0148-2963 (2013) [Refereed Article]

Copyright Statement

Copyright 2013 Elsevier Inc.

DOI: doi:10.1016/j.jbusres.2013.02.017


Evidence for the impact of CSR, and more specifically environmental, initiatives on consumer behavior is both contradictory and equivocal. This quasi-experimental study examines the relationship between the perceived environmental performance of a company (PEP) and consumers' purchase intentions, and then determines whether this relationship is moderated by the degree of consumers' environmental involvement (El) and by the relative price of company products. Surveys were posted to a random sample of residents in Hobart, the capital of Tasmania, Australia. Responses (n = 698) show that participants report higher purchase intention for products from high versus low PEP companies, and that participants' El and product price moderate this relationship. Those with high El report greater purchase intention for high PEP companies and the reverse for low PEP companies, indicating that participants with high El are more positively influenced by their perceptions of a company's environmental performance. However, participants are more likely to favor a high PEP company when the relative price of a product is low versus high, irrespective of their level of El. The strong relationship between companies' PEP and consumers' purchase intentions affirms that developing and managing an environmental brand image may deliver significant benefits, as long as it is appropriately communicated to consumers, and as long as consumers see the added value of making such purchases.

Item Details

Item Type:Refereed Article
Keywords:consumer attitudes, consumer behavior, corporate social responsibility, green marketing, pricing
Research Division:Commerce, Management, Tourism and Services
Research Group:Marketing
Research Field:Marketing management (incl. strategy and customer relations)
Objective Division:Economic Framework
Objective Group:Management and productivity
Objective Field:Marketing
UTAS Author:Grimmer, MR (Professor Martin Grimmer)
UTAS Author:Bingham, TW (Mr Timothy Bingham)
ID Code:84890
Year Published:2013
Web of Science® Times Cited:137
Deposited By:Management
Deposited On:2013-06-05
Last Modified:2017-11-28

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