International Journal of Contemporary Hospitality Management

Customer loyalty: exploring its antecedents from a green marketing perspective

Patricia Martínez García de Leaniz
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 Customer loyalty: Exploring its antecedents from a green marketing perspective

Patricia Martínez

Submitted: 10 March 2014

1st Revision: 10 July 2014

2nd Revision: 18 September 2014

Accepted: 28 September 2014

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DOI 10.1108/IJCHM-03-2014-0115

Introduction

Given the environmental problems that plague the world (e.g., global warming, environmental
degradation, habitat destruction, air and water pollution, resources depletion…) customers are
considering green options to integrate in their behavior that can do good to the planet (Hsieh,
2012; Jones et al., 2014). The consequence of this attitude is that an increasing number of
organizations are admitting their environmental responsibility (Chan, 2013a). In order to
respond to these environmental demands, companies should develop new corporate strategies
then can guarantee fulfillment with these green alternatives, such as green marketing (Chen,
2010; Kang and Hur, 2012). According to Chan (2013a), green marketing has become one of
the most relevant concepts. By developing green marketing strategies companies can develop
and make possible any exchange to please environmental requirements of customers (Polonsky,
1994). As Bonilla-Priego et al. (2011, p. 361) state: “this change in environmental behavior is
of particular interest because it could lead to potentially major changes throughout the hotel
industry”.

In the hospitality industry, more and more hotels are developing green marketing strategies to
satisfy the requests environmentally conscious consumers (Hsieh, 2012; Chan, 2013a). Given
that this sector consumes considerable quantities of natural resources, water and energy
(Bohdanowicz, 2005; Chan and Ho, 2006) many hotels make use of the label “green hotel” as a
strategy to catch the attention of customers and attract them (Brown, 1996; Pizam, 2009). The
website of the Association of Green Hotels (2013) states that: “green hotels are
environmentally-friendly properties whose managers are eager to institute programs that save
water, save energy and reduce solid waste, while saving money, to help protect our one and
only earth”. About 75% of the environmental impacts of hospitality companies are related to
water, energy, perishable products as well as soil, water and air contamination (APAT, 2002).
The Green Seal (2012) indicates that (on average) a hotel purchases more products in seven
days than a hundred households in one year. Consequently, hotel managers have implemented
corporate programs aimed at saving natural resources such as water, decreasing energy
consumption, reducing water and air pollution, solid waste and using resources efficiently
(Bohdanowicz, 2005; Hsieh, 2012) to keep at the minimum the expenditure and to maximize
 profit since it has been accepted that these activities result in cost savings (Bohdanowicz, 2005).
For instance, NH Hotels have developed an interesting initiative named “Ecomeeting”. This
initiative consists of organizing meetings and events taking into account environmental issues
guaranteeing a responsible consumption of resources and materials. Apart from that, NH Hotels
give the possibility of compensating the CO2 emissions generated during the event. Previous
research shows that a number of hospitality companies are interested in green initiatives only if
they reduce costs (Akis, 2001) which signifies that some hotel managers “go green” in order to
save money, rather than to protect the environment. However, not only hoteliers ought to be
responsible for the environmental impacts of hotel firms. Actually, the efficient implementation
of green initiatives within the hotel industry requires guests´ commitment and support (Tsai and
Tsai, 2008). Liu et al. (2012) state that customers´ decisions regarding buy (or not) green
products have a great influence on green practices.

With regard to this, previous studies show customers´ biases towards green accommodation
because of price and who should fund green policies (Manaktola and Jauhari, 2007; Ogbeide,
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2012). In this sense, extant research indicate that customers are not eager to pay a higher price
to finance green activities (Millar and Baloglu, 2011) while other studies suggest otherwise
(Laroche et al., 2001; Pizam, 2009). In this vein, some scholars identify customers´ barriers to
participation in green hotels such as perceptions of cost cutting (Baker et al., 2014) while others
propose that customers increasingly demand green services in the hospitality industry
(Manaktola and Jauhuri, 2007). Overall, despite these potential inconsistencies in academic
research, the number of customers willing to seek and stay in green hotels has grown (Deloitte,
2014). Moreover, the green hotel sector is a market segment on the rise not only because these
properties differentiate themselves from its competitors but also because they satisfy a need in
the market for more environmentally-friendly hotels (Manaktola and Jauhuri, 2007).

The relationships among green initiatives, hotels´ overall image and consumer behavior have a
great impact on hotel business because of the intangible characteristics of hospitality services.
Extant research supports that overall corporate image exerts great influence on customers´
behavior and their purchasing decisions within the hospitality setting (Chen and Tsai, 2007; Han
et al., 2009; Kandampully and Suhartanto, 2000; Lin et al., 2007; Ryu et al., 2012). Despite the
many benefits of a favorable image by hotel companies, only a few studies have explored the
influence of green practices and green overall image on customers´ behavioral intentions in the
context of hotel management. As far as the author knows, no previous studies have explored the
consequences of the image of a green hotel and its role in developing green loyalty. At the same
time, the growing interest of marketing academics and practitioners in relationship marketing
suggests that customer trust and satisfaction are vital to develop lasting relationships with
consumers (Delgado and Munuera, 2005; Kim et al., 2001Lee et al., 2009). Connecting these
ideas with a green approach to customer loyalty, the author suggests the following research
question: What should hotel companies do to enhance customer loyalty? Although extant
research has investigated relevant aspects of customer trust, satisfaction, overall image and
loyalty, these issues have not been discussed from a green marketing perspective. Based on the
framework developed by Lavidge and Steiner (1961) –the hierarchy of effects model− the
author proposes that two affective variables, (1) green trust and (2) green satisfaction, mediate
the relationship between green overall image and green loyalty. This research contributes to
previous studies exploring the influence of green overall image, satisfaction and trust on green
loyalty in a hospitality setting. Moreover, if the statistical tests carried out in this research
validate the hypotheses that are proposed, an additional contribution of this research will be the
 validation of the hierarchy of effects model in a green marketing context. By expanding
previous studies on customer loyalty in a green context and exploring the relationships among
these constructs, this study offers an assessment of green marketing strategies within the hotel
context to increase green loyalty on the part of customers.

Literature review and hypotheses

Green marketing

The origin of the “green marketing” concept is situated in the decade of the eighties (Chen,
2010). Customers often relate this notion to other terms such as “recyclable” or
“environmentally friendly” (Polonsky, 1994). However, green marketing represents a more
inclusive concept that comprise “all activities designed to generate and facilitate any exchanges
intended to satisfy human needs or wants, such that the satisfaction of these needs and wants
occur, with minimal detrimental impact on the natural environment” (Polonsky, 1994, p. 2).
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The academic literature on this approach has mainly focused on theoretical approaches (Peattie
and Crane, 2005; Polonksy, 1994), the assessment of diverse green marketing strategies
(Brown, 1996; Cronin et al., 2011) and the relevance of these policies (Chan, 2013b; Hsieh,
2012; Kasim, 2009). Other academics have also explored the motivations to implement green
initiatives (Bonilla-Priego et al., 2011; Tzschentke et al., 2004). For instance, one reason to
develop green marketing strategies is to accomplish corporate goals (Shearer, 1990). Other
motives include moral obligations to be more ethical (McIntosh, 1990), pressure from
competitors or government (Delmas and Toffel, 2008), costs associated with reductions in waste
disposal (Tzschentke et al., 2004), the opportunity to develop a favorable corporate image and
reputation (Lee et al., 2010) or the opportunity to seek new markets and enhance product value
(Chen, 2010). Similarly, previous studies have analyzed the effect of green marketing on
consumers (Chan, 2013a; Chen, 2010; Di Pietro et al., 2013; Hur et al., 2013; Kang and Hur,
2012; Laroche et al., 2001; Lee et al., 2010; Slevitch et al., 2013). For instance, Han et al.
(2009) explore the role of attitudes toward green behaviors in consumers´ eco-friendly decision
making process. Their research shows that overall image is a positive function of attitudes
toward green behaviors and that it affects specific behavioral intentions such as visit intention
and readiness to pay a premium price. On the other hand, Hur et al. (2013) explore how
consumer value relates to loyalty and price consciousness through customer satisfaction
following a green perspective in the automobile industry. Similarly, Kang and Hur (2012)
investigate the antecedents of green brand equity within the electronic sector in South Korea.

It must be highlighted that extant studies on green marketing issues have focused on electronic
products and firms producing manufactures products such as cosmetics, toiletries or hybrid cars
(Chen, 2010; Hur et al., 2013; Ng et al., 2014). However, scant research has based its proposal
on the hierarchy of effects theory to explore how the overall image of a green hotel and its
consequences (e.g., green trust and green satisfaction) can affect green loyalty. As Chan (2013b,
p. 444) states “studies on green marketing in the hotel industry are seen as less sensitive”.
Consequently, this study bridges this gap by investigating how to develop green hotel loyalty
using the concepts of green overall image, green trust and green satisfaction.

Conceptual background

The hierarchy of effects model

 The author builds the conceptual framework of this research on the principles of the hierarchy
of effects theory. This approach considers that customers normally do not switch from
disinterested individuals to convinced purchases in one instantaneous step (Lavidge and Steiner,
1961). Instead, customers approach purchases through a multi-stage process, of which the
purchase itself is the final step. Lavidge and Steiner (1961) divide the stages of customer
behavior into three components: (1) the cognitive (or rational) dimension, which refers to
customer thoughts and beliefs, (2) the affective (or emotional) dimension, referring to the realm
of emotions and (3) the conative (or motivational) dimension, referring to customer behavioral
intentions and actions.

Companies communicate their green programmes and activities primarily through what Lavidge
and Steiner (1961) call “image advertising”, which focus on the steps of generating attitudes and
feelings rather than directly accessing the stage of conative behavior (loyalty). In this cognitive
– affective – conative sequence, green overall image is a set of beliefs that determine corporate
image. Consecutively, these beliefs determine affective responses from customers (e.g., green
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trust and green satisfaction) because of the cognitive effort to evaluate the company in relation
to the cost of being its customer. Finally, these affective responses affect customer conative or
behavioral outcomes, such as recommendation and repurchase behaviors (e.g., green loyalty).

Along this line, previous studies analyzing the direct effect of green and environmental issues
on green customer behavior have obtained mixed findings. However, it has been observed than
when scholars introduce mediating affective variables in the study (e.g., green perceived value,
green affect, green trust) green marketing variables always have an impact on behavioral
consumer responses (Chen and Chang, 2013; Ng et al., 2014). Therefore, it seems that the
hierarchy of effects model is more appropriate to understand the effects of green overall image
on customer responses that the study of direct connections between the cognitive and behavioral
phases of the hierarchy of effects model. An explanation could be that given the relatively high
degree of perceived risk associated with services, the competitive advantages resulting from
pursuing green products may not be as direct as the positive reactions of customers to other
corporate associations such as service quality or functional benefits (Ng et al., 2014).

INSERT FIGURE 1 HERE

Green loyalty and its antecedents

Several studies explore the antecedents of loyalty in the hospitality context (Martínez and
Rodríguez del Bosque, 2013; Osman et al., 2013; Tandford et al., 2012), but further research is
needed to investigate the determinants of hotel customer loyalty from the perspective of green
marketing. Extant research in the hospitality sector does not expand previous empirical studies
on green loyalty by incorporating the consequences of the overall image of green hotels and its
role in enhancing green loyalty. Furthermore, no previous studies apply the hierarchy of effects
model in a green marketing context.

Customer loyalty has become a strategic objective for companies and is of particular importance
in the service sector, given that customers perceive a greater risk in the choice of services (Polo
et al., 2013). Moreover, customer loyalty represents the final ambition of a number of
companies, since loyal customers buy more, spend a larger share of their income at the supplier
and tend to be less price-sensitive than other customers (Williams and Naumann, 2011). It is
recognized that the visit frequency of loyal customers is higher, and that they buy more than
non-loyal consumers. Additionally, loyal customers are unlikely to consider competitor hotel
 brands in their accommodation decisions only due to an economic reason (Yoo and Bai, 2013).
Previous studies show that a minimal variation in the percentage of loyal customers can have a
great impact on the profitability of companies (Reichheld, 1993). For instance, in their research
in the service context Reichheld and Sasser (1990) demonstrate that an increase of 5% in the
retention of customers implies an increase of 125% in profits. Furthermore, Petrick (2004)
demonstrated that is six times cheaper to retain existing consumers than to attract new ones.
Based on Dick and Bassu (1994) “green loyalty” is defined in this study as “a consumer
commitment to repurchase or otherwise continue using a green brand”. Finally, the antecedents
of green loyalty in the proposed model are explained in the next section.

Green overall image and its influence on green satisfaction and green trust

Green overall image

Many scholars and practitioners have shown great interest in the concept of a company´s image
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due to its effects on customers´ behavioral decisions (Chen and Tsai, 2007; Han et al., 2009;
Kandampully and Suhartanto, 2000; Lin et al., 2007; Ryu et al., 2012). Overall image is defined
by Keller (1993, p. 3) as “a set of perceptions about a brand as reflected by brand associations
in consumer´s memory”. Park et al. (1986) argue that customers can benefit from overall image
of companies since it provides them with functional, experiential and symbolic benefits.
According to these authors, functional and experiential benefits correspond to product-related
attributes while symbolic benefits are related to underlying psychological needs of customers
such as personal expression and correspond to attributes that are not related to the product or
service. Based on the previous definition by Keller (1993) and Chen (2010) the present study
suggests a new variable “green overall image” defined as “a set of perceptions of a firm in a
consumer´s mind that is linked to environmental commitments and concerns”.

Previous studies support the influence of overall image on customers´ behavior (Han et al.,
2009; Kandampully and Suhartanto, 2000; Lin et al., 2007; Ryu et al., 2008; Ryu et al., 2012).
For instance, Lin and colleagues (2007) demonstrated that tourists are highly likely to choose a
tourist destination with a favorable image. In the hospitality setting, Han et al. (2009) support
the relationship between overall image and green behavioral intentions in terms of worth of
mouth, visit intention and readiness to pay a higher price. Relating the concept of green
marketing to overall image and customer loyalty, the next hypothesis is proposed:

H1: Green overall image positively influence green customer loyalty.

According to the hierarchy of effects theory, the affective stage of customer behavior begins
with the evocation of feelings based on the perception of the company (Lavidge and Steiner,
1961). Following this approach, green overall image is a set of beliefs that determine corporate
image. Consecutively, these cognitive beliefs determine affective responses from customers
(e.g., green trust and green satisfaction) because of the cognitive effort to evaluate the company
in relation to the cost of being its customer. Finally, these affective responses influence
customer conative or behavioral outcomes, such as recommendation and repurchase behaviors
(e.g., green loyalty).

Green satisfaction

Enhancing customer satisfaction is widely recognized as an important element leading to the

success of hospitality companies (Bowen and Chen, 2001).Within the highly competitive hotel
 industry, which offers homogeneous products and services, hotel managers must find ways to
make their offer to stand out among their competitors. As Choi and Chu state (2001, p. 278)
“hoteliers need to understand their customer´s needs and meet or exceed these needs”. Overall,
the term of customer satisfaction is defined based on May and Ness´s definition (1999, p. 863)
as “a general feeling of pleasure or gratification experienced by a consumer arising from the
ability of a product or service to satisfy the customers´ expectations, desires and needs”.
Following this characterization, the present study proposes “green satisfaction” as an affective
variable defined as “a pleasure level of consumption-related fulfillment to satisfy customers´
environmental desires, sustainable expectations and green needs”.

As previous studies suggest overall image and customer satisfaction are positively related
(Chang and Tu, 2005; Kandampully and Suhartanto, 2000; Martenson, 2007). In this line of
thought several academics consider that overall image is one of the most reliable cues which
signal the ability of hotels to satisfy consumers´ desires and needs (Kandampully and Hu,
2007). As Andreassen and Lindestad (1998) explain (1998, p. 10) “overall image is believed to
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create a halo effect on customers´ satisfaction judgment […] when customers are satisfied with
the services rendered, their attitude toward the company is improved. This attitude will then
affect the consumers´ satisfaction with the company”. Additionally, Nguyen and Leblanc (2002,
p. 244) state that “a favorable image is a powerful tool […] for improving […] levels of
satisfaction toward the company”. Therefore, the author proposed the next hypothesis:

H2: Green overall image positively influences green customer satisfaction.

Green trust

This study conceptualizes trust as an emotional construct defined as the “willingness to rely on
an exchange partner in whom one has confidence” (Moorman et al., 1992, p. 315). The present
research is based on deep-rooted theoretical approaches from the social psychology literature
employing not only cognitive aspects but also affective elements to conceptualize trust.
Emotional aspects of trust are considered to be significant in the hospitality industry due to the
fact that customers trust in affective signals from companies as a point of reference to evaluate
quality (Johnson and Grayson, 2005). Following the previous definition by Moorman et al.
(1992), this research defines “green trust” as the “willingness to rely on an exchange partner in
whom one has confidence because of its environmental performance”.

As previous studies demonstrate customer trust is positively influenced by image of companies

because corporate associations (e.g., overall image) are able to diminish the risk perceived by
customers while increasing purchase probability (Flavián et al., 2005). Overall image influence
customer behavioral intentions and extant research has provided evidence that overall image
positively impact customer trust (Mukherjee and Nath, 2003). Based on the previous ideas, the
more favorable the green overall image, the higher the confidence customers place in the
company due to the feeling generated by the level of care the company shows about its
environmental commitment. Therefore, the author proposed the following research hypothesis:

H3: Green overall positively influences green customer trust.

The influence of green trust and satisfaction on green loyalty

Extant research recognizes that trust is a must-have condition to develop and preserve durable
relations with customers (Delgado and Munuera, 2005; Morgan and Hunt, 1994). Some
 academics have even postulated that trust is the “cornerstone” of long-term relationships
(Spekman, 1988, p.79). Within the hospitality industry this construct have been identified as an
essential element to encourage strong customer-company relationships. In this sense, recent
studies have demonstrated the role of trust at the time of enhancing loyalty to hotels (Martínez
and Rodríguez del Bosque, 2013; So et al., 2013; Wilkins et al., 2009). Therefore, this study
proposes the next research hypothesis:

H4: Green customer trust positively influences green customer loyalty.

The concept of customer satisfaction has been identified by a number of scholars as a

prerequisite to develop customer loyalty (Oliver, 1996). It is generally accepted that customers
tend to develop greater levels of loyalty toward a specific company (e.g., repurchasing and
recommending its products and services) when they are satisfied with its performance (Martínez
and Rodríguez del Bosque, 2013). In a similar way, previous studies have proven that customer
satisfaction has a great influence not only on the retention of customers but also on their
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purchase intention (Ranaweera and Prabhu, 2003). The academic literature in the hospitality
industry context has empirically supported that customer loyalty is positively influenced by
satisfaction on the part of customers (Bowen and Chen, 2001; Caruana, 2002; Kandampully and
Suhartanto, 2000; Kim et al., 2001; Ryu et al., 2012). However, no previous studies have
explored this relationship for green environmental issues. Therefore, this study proposes the
following hypothesis:

H5: Green customer satisfaction positively influences green customer loyalty.

Extant research in the tourism and hotel setting confirms the direct and positive link between
customer satisfaction and trust (Kim et al., 2009). Previous studies support that customer trust
serves as a predictor of customer satisfaction (Chiou and Pan, 2009; Martínez and Rodríguez del
Bosque, 2013). These studies base their proposals on the idea that there are different strategies
to increase the level of trust among customers (e.g., corporate communications or positive word
of mouth) and that each of these tactics will positively affect customer satisfaction. By favorable
influencing customer satisfaction judgment companies will positively impact behavioral
intentions of customers towards firms (Chiao and Pan, 2009). Therefore, it is proposed that:

H6: Green customer trust positively influences green customer satisfaction.

FIGURE 2 ABOUT HERE

Methodology

Sample and data collection

A sample of hotel customers was surveyed with a questionnaire in the Spanish context to
validate the research hypotheses. The author used a structured questionnaire to collect data. The
potential respondents were required to answer a screening question to confirm that they had
actually been customers of a hotel company over the last year. University students collaborated
in collecting and gathering data1. Each student had to conduct surveys to several persons (no
more than 6 per student) following specific patterns of gender and age (see next paragraph).
Students could choose relatives, friends or acquaintances as respondents as long as they met
these criteria. The length of each interview averaged 15 minutes. After eliminating erroneous
questionnaires 382 surveys were obtained. Before conducting the fieldwork the author provided
 students with specific instructions to carry out data collection (included the final questionnaire
developed by the author).

A convenience sample was employed (non-probabilistic sampling procedure) to design the

research sample. With the purpose of ensuring greater representativeness of the data, the author
used a multistage sampling by quotas based on customers´ gender and age. Table 1 displays the
profile of respondents. 49.8% of the sample corresponded to male respondents whereas female
respondents accounted for 50.2% (which was comparable to the population in the country). 10
% of the respondents were under the age of 24, with 38.7% aged between 25 and 44, and 51.3%
being over the age of 45. As far as the educational level is concerned, 18.9 % had a postgraduate
degree, 20.3% a graduate degree and 52.7% had an undergraduate degree.

Measures

This study employs seven-point Likert scales from 1 to 7 (rating from strongly disagreement to
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strongly agreement) to measure the items of the constructs. Green satisfaction was measured
following Oliver (1996). Five items based on Chen (2010) was employed to measure green
trust. To asses green overall image five items based on Cretu and Brodie (2007) were used.
Finally, four items based on Sirdeshmuhk et al. (2002) and Zeithaml et al. (1996) were used to
measure green loyalty. The Appendix shows the scales used for each factor. In a pre-fieldwork
stage the questionnaire was scrutinized by several academics experts in hospitality and tourism
to ensure content validity of the measurement instruments. These scholars revised several
aspects of the questionnaire such as the item understandability, legibility, vagueness and other
inconsistencies in the survey (Hair et al., 2010). As a result, the wording of several items was
modified to improve the comprehension of potential respondents.

Findings

To assess the psychometric properties of the measurement instruments and test the proposed
hypothesis several statistical analyses were conducted. Specifically, the present study follows
the structural equation modeling (SEM) procedure developed by Anderdon and Gerbing (1988).
Thus, reliability and validity of the measurement scales were evaluated through a confirmatory
factor analysis (CFA) before testing the conceptual model.

TABLE 1 ABOUT HERE

Measurement model results

To assess convergent validity and discriminant validity a CFA was conducted. Results show a
good model fit (Hair et al., 2010): χ2= 292.27; df=113; p=0.00; NFI=0.927; NNFI (or
TLI)=0.944; IFI=0.954; CFI=0.953. Convergent validity was tested by analyzing the
standardized lambda coefficient of each item, the average variance extracted (AVE) and the
coefficient of Cronbach´s alpha (Table 2). The individual reliability shows a value superior to
0.5 (Hair et al., 2010). Furthermore, the Cronbach´s coefficient and AVE were above to the
reference value, at 0.70 and 0.50, respectively. These results led the author to conclude that the
dimensions proposed to measure the set of constructs were valid. To conclude, to verify
discriminant validity the author focused on the procedure developed by Fornell and Larcker
(1981) (Table 3).

TABLE 2 ABOUT HERE

 TABLE 3 ABOUT HERE

Structural model results

SEM fit measures indicate that the fit of the model is very good (χ2 = 292.28; df=113; p=0.000;
NFI=0.927; NNFI (or TLI)=0.944; IFI=0.954; CFI=0.953) (Table 4). Regarding the structural
equations, the findings show that green overall image have positive effects on green trust
(β=0.671*) and green satisfaction (β=0.212*) in support of H3 and H2. In addition, green trust
(β=0.593*), green satisfaction (β=0.251*) and green overall image (β=0.227*) have a positive
effect on green loyalty. Thus, H4, H5 and H1 are supported. Finally, green trust is positively
related to green satisfaction (β=0.862*) supporting H6.

TABLE 4 ABOUT HERE

FIGURE 3 ABOUT HERE

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Discussion and implications

Theoretical and managerial implications

Gaining and sustaining customer loyalty constitutes the ultimate aspiration of many firms,
including hospitality companies, since loyal customers buy more, spend a larger share of their
incomes at the supplier and tend to be less price-sensitive than other customers (Williams and
Nauman, 2011). Additionally, green marketing has become an accessible marketing technique
for customers and customers (Polonksky and Rosenberger, 2001). Therefore, the academic
literature on green marketing has to incorporate the concept of customer loyalty.

Even though extant research in the hospitality industry broadly explores loyalty issues, there is
no study investigating the concept of green marketing in the literature on hotel customer loyalty.
Scholars have not provided hospitality practitioners with comprehensive models to understand
the links among green image, its affective consequences and behavioral customer reactions.
Based on a green marketing approach and following the principles of the hierarchy of effects
model, this study integrates the overall image of a green hotel into a model of customer loyalty,
showing its relevance to develop not only green loyalty but also green trust and green
satisfaction on the parts of customers. By considering the overall image of a green hotel with the
notion that customer trust and satisfaction are important constructs for understanding consumer
behavior (Delgado and Munuera, 2005; Kim et al., 2001; Lee et al., 2009), this research
suggests a research framework to delve into customers´ green loyalty.

Additionally, the results presented here confirm the validity of the hierarchy of effects theory to
understand the mechanism through which green overall image influence green customer loyalty.
Specifically, the cognitive associations concerning green image directly influence affective
responses of customers such as their green trust and green satisfaction. In turn, this positive
affect determines green loyalty of customers. Therefore, this study shows two different ways for
hospitality companies to generate green customer loyalty. The first path is composed of the
beliefs and thoughts generated by green issues, while the second route is composed of the
emotions and feelings generated by these aspects.

This study presents four additional theoretical contributions to academic literature in the
hospitality industry. First, this research follows a holistic approach by combining two
perspectives, (1) relationship marketing and (2) green marketing, to develop a research
 framework for understanding green customer loyalty. These results are in agreement with past
studies using both approaches to explore consumers´ reactions towards green products or
services (Chen, 2010; Kang and Hur, 2012; Hur et al., 2013). Nevertheless, this study expands
previous studies on green marketing and customer loyalty by including relationship constructs
as mediating variables.

Secondly, no prior research investigates the relation between green overall image and green
customer loyalty in the hotel sector. This study demonstrates that green overall image positively
influence not only green customer loyalty but also green trust and green satisfaction. Moreover,
this study provides empirical evidence that green satisfaction and green trust mediate the
relationship between green image and green loyalty which is consistent with previous research
such as the paper by Lee et al. (2010) which points to green overall image as a strategic concept
that is suitable for generating not only an overall evaluation of companies but for arousing
affective positive perceptions of service performances. Fourth, increasing consumer perceptions
about green overall image, trust and satisfaction can help to raise customer loyalty for green
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services in the hospitality industry. These results reveal the relevance of environmental issues in
today´s business context and the need for hospitality companies to include them into their
management strategies and policies. The findings demonstrate that green issues are a key
strategic tool, given its essential role in building not only customer loyalty but also customer
trust and satisfaction.

Hotel managers ought to design strategies to raise perception of green image and to help guests
to develop greater levels of green satisfaction and trust to build enduring relationships with
companies. To obtain these outcomes hoteliers could implement visible environmental practices
such as energy and water conservation initiatives, waste management systems, recycling
programs, using environmentally-friendly products, obtaining environmental certifications (e.g.,
Green Globe Certification, Energy Star, Green Seal,…), implementing sustainable building
practices or developing environmental protection initiatives, among others. Moreover, since
customers´ perceptions of green overall image, trust and satisfaction might be largely affected
by corporate communications related to green issues, the hotel accommodation industry should
effectively communicate these initiatives to explain the goals of green strategies. Consequently,
hotel managers should emphasize the importance of environmental issues by promoting green
campaigns so as to build up the green overall image of hotels. For example, NH Hotels´ actively
promotes its “Green Rooms” that consist of key drivers aimed at reducing the environmental
impact of its bathrooms. For instance, new dispensers of paper towels have been installed to
achieve a significant reduction in the amount used. Similarly, traditional taps have been
replaced with aerators in 77 % of hotels while its “Agua de la Tierra” amenities are packaged in
containers made of biodegradable plastic. Finally, the toilets operate with a flushing system fed
from collected rain water requiring 25% less water than traditional models (Green Hotelier,
2013). In order to effectively promote green initiatives, it is highly recommended that hoteliers
develop an integrated communication strategy with multiple information channels to show the
characteristics of a green hotel. For instance, green hotels should use social media, direct mail,
public relations and advertising in order to communicate their green practices to customers.
Specifically, by actively participating in ecological forums and events, sponsoring
environmental programs, increasing their presence in social networks (e.g., Facebook, Twitter,
Youtube, LinkedIn…) and using in-house advertising (e.g., in-house magazines and television
channels aimed at customers) hotels can develop a favourable overall image based on
environmental aspects.
 In addition, hospitality companies should develop specific programs in order to educate
employees and customers to increase green trust and satisfaction. In a hotel context, employees
are essential mediators who transmit information from guests to managers (and vice versa)
showing that employees´ knowledge about environmental issues is vital to enhance green
customer satisfaction and trust. Therefore, hoteliers are encouraged to provide training related
to green and environmental issues (e.g., conferences, site visits, competitions…) to encourage
employees to become involved in a hotel´s environment program. Similarly, since hotel guests
often are unaware of the impacts they have on the natural environment it is highly
recommended that hotel managers help customers to understand how they can minimize these
negative impacts, for example, by providing information about environmental issues on public
areas of the hotel, hotel rooms, the corporate website or annual reports. Hotel managers should
also employ other tools to influence customers´ perceptions of the green overall image of hotels
such as the visual symbolism of the company (e.g., corporate brand name, corporate graphic
symbols, logo, claim, colors scheme…). Therefore, hotel managers should relate some elements
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of hotels´ visual identity with environmental aspects to promote the development of a green
overall image.

However, and even though hotels successfully perform and implement green initiatives, guests
may under-perceived the green overall image of the hotel (thereby preventing the development
of appropriate levels of green trust and satisfaction). Thus, it would be advisable for hotel
managers to show that they are “doing green” through advertising and other communication
tools to build green associations (e.g., green image) in customers´ minds. However, hotel
managers should perform green communication campaigns carefully because guests´ reactions
to “green washing” could be unfavorable (Chan, 2013a). In this sense, companies have to ensure
that they present and promote their green attributes though sincere and truthful messages,
reducing ambiguity, to avoid green skepticism.

Furthermore, as experience is necessary to develop green customer trust and satisfaction,

customer will tend to become more trusting and satisfied through recurrent positive encounters
with the service provider. As a result, green hotel managers should devote financial resources to
inform customers about green behaviors of the hotel (e.g., communication strategies, loyalty
programs...). This could be a powerful incentive to integrate a green orientation in hotels´
business strategy, considering that green trust and satisfaction are important determinants of
green loyalty. Moreover, given that green marketing can be a useful instrument to differentiate
and position firms, hospitality companies ought to take advantage of the environmental
concerns of customers to benefit from new green niche markets. Nevertheless, the real challenge
for these firms is to integrate their environmental commitment into their corporate identity
instead of promoting their green products and services (Martínez et al., 2014).

To conclude, the present research stands out the relevance of green marketing initiatives to
achieve sustainable competitive advantages. In the author´s opinion, green marketing should be
an integral part of hospitality firms. The author considers that this integration will be improved
when hospitality managers realize that the implementation of green marketing policies may help
firms to reach a situation in which both the company´s financial performance and the
environment will benefit. By implementing green marketing policies into their corporate
strategies hospitality companies can build sustainable competitive advantages such as higher
levels of differentiation, reduction of operating costs, appeal to investors, the attraction of
highly motivated employees and higher levels of guest loyalty (Lee et al., 2010; Tzschentke et
al., 2004). Similarly, green marketing may also result in increased demand from
 environmentally sensitive customers, because the ecological characteristics of services are likely
to be appreciated by these green customers (Polonsky and Rosenberger, 2001). Moreover,
companies that adopt environmental strategies may benefit from premium pricing and increased
sales because of enhanced market legitimacy and greater social approval (Chen, 2010). As
observed, academic literature has proved that a better environmental performance can provide
competitive advantages, which will subsequently improve financial performance. In the case of
customers, the main implication for them has not a financial nature. The author considers that
the most important consequence for guests of green accommodations is the satisfaction of their
green wants and needs. According to the Hospitality 2015 Report by Deloitte, one of the most
significant benefits of environmentally friendly hotels is the satisfaction of guests since “they
respect the idea of conserving the environment”. In this sense, consumers express a great
interest in environmental and green practices, but this interest does not necessarily translate into
a readiness to pay more but it may be seen in a reluctance to stay in a hotel that is considered to
be environmentally irresponsible (Chan, 2013a). According to this report, as this expectation
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becomes the norm, it will be a defining factor in suppressing those brands that are seen as less
environmentally responsible.

This study had several limitations. The present study was performed in the Spanish hotel
context, so that future lines of research could concentrate on other industries or other countries
(e.g., with a longer tradition in green issues) to generalize the findings presented here. Second,
the framework of this research is restricted to its objectives. This research has dealt with the
relationship between the variables of interest, without considering other antecedents and
consequences. Thus, the need still exits to explore other mediating variables (e.g., commitment
regarding environmental issues). Thirdly, bearing in mind the role of green trust and satisfaction
as mediators between green overall image and green loyalty, this research highlights the
necessity to keep deepening into the development of green trust and green satisfaction. In fourth
place, the author did not incorporate consumers´ general attitude towards the environment that
may be able to test for differences between consumers with strong environmental concerns with
those who were less concerned about environmental issues. Thus, considering subgroups of
hotel customers in the green marketing context could be another important line for future
research.

Notes
1
Undergraduate students at the University of Cantabria (Spain) collaborated in the process of collecting
data. These students were coursing a compulsory subject in the Business Administration degree in which
they had to develop a real market research. Since the author teaches this course, it was decided that the
surveys were conducted by the students themselves. Therefore, the author could supervise the fieldwork
and guide students in conducting the surveys.

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Figure 1. The hierarchy of effects model applied to the context of green loyalty

Green overall image Green trust and Green loyalty

Cognitive dimension: green satisfaction Conative
The realm of Affective dimension: dimension:The realm
thoughts The realm of feelings of motives
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Source: Based on Lavidge and Steiner (1961)

Figure 2. Conceptual model

Green
Trust
H4
H3
Green H1 Green
Image Loyalty
H6
H2
H5
Green
Satisfaction

Table 1. Profile of respondents

N % N %
Gender: Age:

Male 190 49.8 From 18 to 24 years 38 10

Female 192 50.2 From 25 to 34 years 76 19.9

From 35 to 44 years 72 18.8

From 45 to 54 years 72 18.9

From 55 to 64 years 53 13.8

Over 65 Years 71 18.6

 Occupation: Education:

Student 54 14.1 No education 31 8.1

Self-employed 52 13.7 Basic/Elementary/Secondary 87 22.9

Worker 151 39.4 Baccalaureate/FP/COU/BUP 114 29.8

Retired/Pensioner 67 17.5 Associate degree 78 20.3

Unemployed 21 5.6 Higher university 72 18.9

Housework 37 9.7

Source: National Statistics Institute - INE (data from January 2011).

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Table 2. Confirmatory factor analysis of the final model

Factor Item Std. lambda Cronbach´s α AVE

GI1 0.800 χ2 = 292.27

GI2 0.790 df =113
GI3 0.562 0.846 0.526
Green Image (p=0.000)
GI4 0.748
GI5 0.701
GT1 0.776 NFI=0.927
GT2 0.854 TLI=0.944
Green Trust 0.897 0.636
GT3 0.850 CFI=0.953
GT4 0.791 IFI=0.954
GT5 0.707
GS1 0.894 RMSEA=0.063
Green 0.915 0.782
GS2 0.870
Satisfaction
GS3 0.889
GL1 0.752
GL2 0.653 0.836 0.592
Green Loyalty
GL3 0.902
GL4 0.899

Table 3. Discriminant validity analysis

Green Image Green Trust Green Satisfaction Green Loyalty

Green Image 0.725
Green Trust 0.706 0.797
Green 0.705 0.635 0.884
Satisfaction
Green Loyalty 0.685 0.650 0.813 0.769
The bold diagonal elements are the square root of the variance shared between the constructs and their measures. Off
diagonal elements are the correlations among constructs.

Table 4. Structural equation model results

 Std. coefficient
Hypotheses Structural relationship Contrast
(Robust t-value)

H1 Green image Green loyalty 0.227 (2.876)* Accepted

H2 Green image Green satisfaction 0.212 (2.979)* Accepted
H3 Green image Green trust 0.671 (13.956)* Accepted
H4 Green trust Green loyalty 0.593 (5.162)* Accepted
H5 Green satisfaction Green loyalty 0.251 (2.855)* Accepted
H6 Green trust Green satisfaction 0.862 (10.294)* Accepted
NFI=0.927 TLI=0.944 CFI=0.953 IFI=0.954 RMSEA=0.063
χ2 = 427.763 df = 113 (p=0.000)
* p<0.005

Figure 3. Structural model estimation

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GT1 GT2 GT3 GT4 GT5

.78 .85 .85 .79

.71
GI1 GI2 GI3 GI4 GI5
Green
.80 .79 .56 .75 .70 Trust
0.593*
0.671*
Green Green
0.227*
Image Loyalty
0.893*
0.212* 0.251*
.75 .65 .90 .90
Green
Satisfaction
GL1 GL2 GL3 GL4
.89 .87 .89

GS1 GS2 GS3

Appendix

Ident. Item

Green image
This hotel company is regarded as the point of reference of environmental
GI1
commitments
GI2 This hotel company has a strong environmental reputation
GI3 This hotel company is successful about its environmental protection
GI4 This hotel company is well-established about its environmental concerns
GI5 This hotel company is trustworthy about its environmental promises
Green Trust
GT1 The environmental commitments of this hotel company are generally reliable
GT2 The environmental performance of this hotel company is generally dependable
GT3 The environmental argument of this hotel company is generally trustworthy
GT4 The environmental concerns of this hotel company meet my expectations
GT5 This hotel company is sincere and honest about its environmental protection
 Green Satisfaction
The choice of this hotel company due to its environmental commitment makes me
GS1
happy
I consider it is correct to stay in this hotel company because of its environmental
GS2
commitment
GS3 I am satisfied with this hotel company because of its environmental performance
Green Loyalty
GS1 I generally choose this hotel company as my first option
I would stay in this hotel company although other competitors had the same
GS2
environmental attributes
GS3 I will choose this hotel company as my first option in the future
GS4 I would make positive comments about this hotel company to family and friends
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Acknowledgments (if applicable):

This research was funded by the FPU Scholarship Program provided by the Spanish Ministry of Education,
Culture and Sports.

Biographical Details (if applicable):

Patricia Martinez is a PhD candidate at the University of Cantabria (Spain). She has a doctoral scholarship
financed by the Spanish Ministry of Education, Culture and Sports, and has a Master’s degree in
Marketing from the University of Cantabria. Her current research interests include corporate social
responsibility, consumer behavior and corporate marketing. Her research focuses on theoretical and
empirical studies in the tourism sector. Her works have been published in journals of international impact
such as International Journal of Hospitality Management, Journal of Business Ethics, Journal of Travel and
Tourism Marketing and Service Business. She regularly participates in several international conferences,
such as European Marketing Academy Conference and International Marketing Trends Conference.