Modelling green customer loyalty and positive word of mouth: Can environmental knowledge make the difference in an emerging market?

Purpose: The purpose of this paper is to examine the influence of consumption values, green customer satisfaction and customer trust in energy-efficient labels on green customer loyalty and positive word of mouth (PWOM) towards energy-efficient products, and how environmental knowledge moderates these relationships. Design/methodology/approach: A quantitative research approach was followed using a cross-sectional design. Data were collected from 440 consumers in South Africa, who used electronic home appliances that have energy efficiency labels. A structural equation model and a multigroup analysis were used to test the hypothesised relationships. Findings: The results revealed that consumption values partially influence green customer satisfaction, which, in turn, affect green customer trust and loyalty, and PWOM. Environmental knowledge only marginally moderates the relationships in the model. Practical implications: Green marketing practitioners should work on improving green customer satisfaction, which is central to a sustainable green consumption lifestyle. Originality/value: The theoretical contribution of this study is through the application of a multidimensional approach to testing the impact of consumption values on green customer satisfaction. Moreover, this paper provides greater clarity on the specific determinants of PWOM and examines the interplay between green customer loyalty and positive word of mouth towards green products. Furthermore, the moderating effect of environmental knowledge on the relationships in the proposed model is explained.