Contemporary consumers appear increasingly sustainability-conscious but less concerned about premium brand names. In this context, this study addresses the role of the brand name in forming willingness to pay (WTP) toward sustainable branded products. The purpose is to identify the consumers’ psychological mechanism of sustainable brand evaluation.
This study extends the branded product value model and assesses brand equity with a brand-based comparative approach. Based on 407 samples collected in Japan, the relationships among a brand name, product functionality and sustainability, consumers’ ratings of these attributes, and WTP were assessed through moderated mediation analyses.
The halo effect of a premium brand name was observed in consumers’ ratings of product functionality/sustainability. The indirect contribution of product sustainability specification was positive via consumers’ rating of sustainability, whereas this indirect effect was offset by its direct negative impact. Environmental concern and brand involvement did not moderate this mechanism.
Despite increasing sustainability consciousness and declining brand interest, brand names still influence contemporary consumers’ evaluation of sustainable branded products. Accordingly, companies are encouraged to enhance branding from perspectives of not only product sustainability but also other product/nonproduct attributes. They can leverage the profit as a branding consequence to improve product sustainability, thereby enhancing the compatibility of sustainability and business performance.
In the sustainable marketing context, discussions on the brand-derived halo effect are scarce. Literature on customer-based brand equity mostly employs psychological measures without specifying monetary value. This study addresses these gaps and uniquely identifies the contradictory formation mechanism of brand equity.
