Positive effects of green practices on the consumers' satisfaction, loyalty, word-of-mouth, and willingness to pay

Abstract

Concern about green practices by companies and people has grown exponentially worldwide, considering them as a key element sustaining the development of competitive advantages. Given the present competitive, dynamic, and turbulent supermarket environment, managing environmental practices is essential for their survival. This study has two objectives: First, studying the relationship between green practices and customer satisfaction and, second, analyzing the impact of green practices and satisfaction on loyalty, word-of-mouth, and willingness to pay more via a quantitative study on a convenience sample of 458 customers from different Chilean supermarkets. Partial least square regression was used to analyze data. Results show the importance of green practices for developing satisfaction and different customer behaviors such as loyalty, word-of-mouth, and willingness to pay more. In addition, results prove satisfaction's positive impact on loyalty, word-of-mouth, and willingness to pay more. Those results also provide empirical evidence about the effects of green practices on the supermarket industry and, in this way, their advancement toward more sustainable management.

Keywords

• Green practice
• Satisfaction
• Loyalty
• WOM
• Willingness to pay