The Impact of Green Business Management on
Customer Satisfaction: A Review of Literature

Mukul Bhatnagar

Opinion

The Impact of Green Business Management on Customer Satisfaction: A Review of Literature

Mukul Bhatnagar*

University Business School, Chandigarh University, India

Corresponding Author

Received Date: May 24, 2023; Published Date: June 01, 2023

Abstract

In recent years, the importance of environmental sustainability has increased significantly, leading to an increase in the adoption of green business management practices by firms. One of the key benefits of green business management is its potential to improve customer satisfaction. This paper provides a review of the literature on the impact of green business management on customer satisfaction. The paper identifies the key factors that influence customer satisfaction in green businesses, and the mechanisms through which green business practices influence customer satisfaction. The review finds that there is strong evidence to suggest that green business practices can improve customer satisfaction, and that the benefits of green business practices can be maximized through effective communication and marketing strategies.

Keywords:Green business management; Customer satisfaction; Environmental sustainability; Communication; Marketing

Introduction

The concept of green business management refers to the adoption of environmentally sustainable practices by firms. Green business management has become increasingly important in recent years due to concerns over environmental sustainability and the need to reduce the environmental impact of business activities. One of the key benefits of green business management is its potential to improve customer satisfaction. This paper provides a review of the literature on the impact of green business management on customer satisfaction.

Literature Review

Green business management has been shown to have a positive impact on customer satisfaction. Several studies have found that consumers are willing to pay a premium for products and services that are environmentally sustainable [1-2]. This suggests that green business practices can be used as a competitive advantage to attract and retain customers.

One of the key factors that influence customer satisfaction in green businesses is the perceived environmental performance of the firm. Customers are more likely to be satisfied with a firm that is perceived to be environmentally responsible [3-4]. This suggests that firms need to communicate their environmental performance effectively to their customers in order to improve customer satisfaction. Another factor that influences customer satisfaction in green businesses is the perceived environmental value of the products and services offered by the firm. Customers are more likely to be satisfied with products and services that are perceived to be environmentally sustainable [3-4]. This suggests that firms need to develop environmentally sustainable products and services that meet the needs and preferences of their customers in order to improve customer satisfaction.

The mechanisms through which green business practices influence customer satisfaction include enhanced brand image, improved customer loyalty, and increased customer trust. Green business practices can enhance the brand image of the firm, leading to increased customer loyalty and trust [5-6]. This suggests that green business practices can be used to build longterm relationships with customers. Effective communication and marketing strategies are important for maximizing the benefits of green business practices on customer satisfaction. Firms need to effectively communicate their environmental performance and the environmental value of their products and services to their customers through marketing and advertising campaigns [3,7]. This can help to build customer trust and loyalty, leading to improved customer satisfaction.

Conclusion

In conclusion, this paper provides a review of the literature on the impact of green business management on customer satisfaction. The review finds that there is strong evidence to suggest that green business practices can improve customer satisfaction. The key factors that influence customer satisfaction in green businesses include the perceived environmental performance of the firm and the perceived environmental value of the products and services offered by the firm. The mechanisms through which green business practices influence customer satisfaction include enhanced brand image, improved customer loyalty, and increased customer trust. Effective communication and marketing strategies are important for maximizing the benefits of green business practices on customer satisfaction.

Acknowledgement

None.

Conflict of Interest

No conflict of interest.

References

MG Luchs, S Swan (2011) The role of context in green product purchasing. Journal of Business Research 64(7): 715-723.

S Peattie, I Peattie (2003) Ready to Fly Solo? Reducing Social and Environmental Impacts by Encouraging Independent Ecopreneurs. Journal of Organizational Change Management 16(5): 530-543.

D Sheeran (2011) Marketing eco-friendly services: The case of green energy. Journal of Marketing Management 27(3-4): 305-321.

CY Hsu, YH Chang (2014) Environmental responsibility and green marketing: the influence of cultural values on consumer attitudes. Journal of International Consumer Marketing 26(1): 50-68.

H Han, JH Kim (2013) An investigation of green hotel customers’ decision formation: Developing an extended model of the theory of planned behavior. International Journal of Hospitality Management 32: 147-156.

CH Kim, H Kim, TM Kang (2015) Green brand equity and its influence on purchase intention in the automobile industry. Journal of Business Research 68(4): 883-887.

P Kotler, G Armstrong, W Wong, J Saunders (2008) Principles of Marketing, 2^nd New York: Pearson Education Limited, India.

Article Details

Citation

Mukul Bhatnagar*. The Impact of Green Business Management on Customer Satisfaction: A Review of Literature. Iris J of Eco & Buss Manag. 1(1): 2023. IJEBM.MS.ID.000505.

Keywords