Assessing the Effects of Perceived Value and Satisfaction on Customer Loyalty: A ‘Green’ Perspective

ABSTRACT To promote an understanding of green consumption behavior, this paper investigates how consumer value relates to loyalty and price consciousness through consumer satisfaction. The proposed model of the variables underwent empirical validation through data collected from a cross‐sectional survey of 517 consumers in the USA who had bought and possessed a hybrid car – a representative green product. The results indicate that perceived social, emotional, and functional values have a significant positive effect on customer satisfaction with respect to green innovation. Further, customer satisfaction leads to customer loyalty, while lowering price consciousness. This study demonstrates the importance of consumer value and satisfaction in facilitating the diffusion of green innovation, with resulting implications for marketing strategy and public policy. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.