Do Green Brand Benefits stimulate Brand Loyalty? Exploring the Mediating Roles of Customer Perceived Value and Brand Trust and the Moderating Effect of Green Behavior

Abstract

The current study endeavored to determine the effect of green brand benefits on brand loyalty in the context of retail customers at Khyber Pakhtunkhwa, Pakistan. The study also discussed the mediating role of perceived customer value and that of green brand trust in the relationship between green brand benefits and brand loyalty. Moreover, the moderating effect of green behaviour has also been examined in the relationship between green brand benefits and brand trust. A sample of 351 retail customers was taken in the target area and a multi path conceptual model was analyzed by applying Partial Less Square Structural Equation Model (PLS-SEM) method using SmartPLS-3 Software. All the hypothesis were supported and it was concluded that not only that green brand benefits significantly affect brand loyalty but also that both customer perceived value and green brand trust significantly mediate in this relationship. Also, the green behaviour was found to significantly moderate in the relationship between green brand benefits and brand loyalty. The paper's findings have important real-world relevance. It offers effective tactics for bolstering the effectiveness of green branding strategies in improving green brand image and brand loyalty by adding insights from the perspectives of consumers' perceived value.