IMPACT OF GREEN TRUST ON GREEN BRAND EQUITY: THE ROLE OF GREEN PRICING, GREEN WORD OF MOUTH AND GREEN PERCEIVED QUALITY IN THE HOSPITALITY INDUSTRY OF PAKISTAN

Abstract

The increasing global concern for environmental sustainability has placed significant emphasis on green branding in the hospitality sector. This study explores the impact of Green Trust on Green Brand Equity, with a specific focus on the Pakistani hospitality industry. The research examines how factors such as Green Pricing, Green Perceived Quality, and Green Word of Mouth influence Green Trust and, in turn, enhance Green Brand Equity. A quantitative research approach was adopted, using a structured questionnaire distributed to restaurant customers in major Pakistani cities, including Lahore, Karachi, and Islamabad. A sample of 513 valid responses was analyzed through Partial Least Squares Structural Equation Modeling (PLS-SEM) to test the proposed hypotheses. The study establishes that Green Trust acts as a mediator between independent variables (Green Pricing, Green Perceived Quality, and Green Word of Mouth) and the dependent variable (Green Brand Equity). The findings reveal a significant positive relationship between Green Trust and Green Brand Equity, highlighting that customers are more likely to engage with and remain loyal to brands that demonstrate genuine environmental commitment. The study further confirms that Green Perceived Quality has the strongest impact on Green Trust, indicating that consumers prioritize the authenticity and effectiveness of eco-friendly initiatives when forming perceptions about a brand’s trustworthiness. Additionally, Green Word of Mouth plays a crucial role in shaping consumer attitudes, as positive recommendations from others reinforce the credibility of a brand’s sustainability claims. While Green Pricing also affects Green Trust, its impact is relatively moderate, as many consumers remain price-sensitive despite their environmental concerns. The research contributes to the theoretical framework by integrating Signaling Theory and Social Identity Theory to explain how brands can leverage sustainability efforts to enhance consumer trust and loyalty. Practical implications suggest that businesses in the hospitality sector should focus on transparent and credible green marketing strategies, ensuring that sustainability claims align with actual practices to build lasting consumer trust. Overall, this study provides valuable insights into the evolving consumer mindset regarding environmental sustainability in hospitality. It highlights the importance of trust as a key driver of brand equity, urging hospitality businesses to adopt genuine and verifiable green initiatives to gain a competitive advantage in a sustainability-conscious market.