From Greening to Branding: The Impact of Green Economy Approaches on Strengthening Brand Image

Document Type : Original Article

Authors

1 Department of Management, Payame Noor University, Tehran, Iran.

2 Department of Information Technology Management, Payame Noor University, Tehran, Iran.

Abstract

Introduction
In today’s highly competitive marketplace, brands that possess distinctive and difficult‑to‑imitate advantages are more likely to achieve long‑term success. Brand image is widely recognized as one of the most critical determinants of success in the retail industry. Retailers with a strong and favorable brand image are better positioned to attract more customers, expand their market share, strengthen customer loyalty, and enhance overall business performance. A positive brand image shapes customers’ perceptions and attitudes toward the brand and ultimately influences their purchasing decisions. Consumers rely on a variety of cues—including the store’s physical environment, product assortment, service quality, employee interactions, and even the brand’s social and environmental initiatives—to form their overall perception of a brand. In this context, the green economy has emerged as a strategic approach to promoting sustainable development while strengthening brand image. With the acceleration of industrialization and the growing urgency of environmental challenges, organizations are increasingly encouraged to adopt sustainable practices and align their activities with broader environmental and social objectives. Traditional economic models, which primarily emphasize profit maximization, have contributed to social inequalities, environmental degradation, and the marginalization of social and ecological considerations. By contrast, the green economy represents a contemporary paradigm that seeks to harmonize economic growth with environmental protection and social equity, thereby fostering sustainable development. Against this backdrop, the present study examines the impact of key green economy components—namely green policies, green investment, and green marketing—on the brand image of Etka chain stores in Isfahan, Iran. Despite the growing global emphasis on the green economy, empirical research in this area remains relatively limited, particularly in developing countries such as Iran. Accordingly, this study aims to address this gap by investigating how green economy practices can contribute to enhancing brand image within the retail sector.
 
Methodology
This study employs a descriptive–correlational design and was conducted through field research. The statistical population comprised managers and employees of Etka chain stores in Isfahan. Using a simple random sampling method, 119 participants were selected. Data were collected through a researcher-developed questionnaire. The questionnaire consisted of two sections: (1) demographic information and (2) research constructs, measured using a five-point Likert scale. Data were analyzed using Structural Equation Modeling (SEM) based on the Partial Least Squares (PLS-SEM) approach in SmartPLS software. The reliability of the measurement instrument was assessed and confirmed using McDonald’s omega coefficient.
 
Findings
The findings of the study can be summarized as follows:

Green Policies: Green policies have a positive and significant impact on brand image (path coefficient = 0.445, t-value = 6.284). This finding indicates that the implementation of environmentally responsible policies can significantly enhance the brand image of Etka chain stores.
Green Investment: Green investment also exerts a positive and significant effect on brand image (path coefficient = 0.229, t-value = 2.814). Investments in environmentally sustainable initiatives contribute to strengthening the brand’s reputation and increasing customer trust.
Green Marketing: Green marketing has a positive and significant influence on brand image (path coefficient = 0.244, t-value = 3.423). Marketing strategies that highlight environmental responsibility can attract environmentally conscious consumers and reinforce customer loyalty toward the brand.
Overall, the structural model demonstrates satisfactory reliability and validity. The results indicate acceptable levels of composite reliability, average variance extracted (AVE), and discriminant validity, confirming the robustness of the measurement model.

 
Discussion and Conclusion
Consistent with prior research (Gazi et al., 2024; Zhang et al., 2022), this study demonstrates that green economy practices—specifically green policies, investments, and marketing—significantly enhance brand image and foster long-term customer loyalty. For Etka chain stores, these strategies serve as critical differentiators in a competitive retail landscape. Practically, we recommend that Etka implement standardized energy, water, and waste management protocols, coupled with eco-labeling to signal its sustainability commitment. Furthermore, resources should be directed toward renewable energy projects, sustainable supply chain development, and NGO partnerships. Finally, the brand should utilize sustainability-focused advertising and consumer incentives, such as rewards for using reusable bags or purchasing eco-friendly products, to strengthen its market position. While this study offers valuable insights, it is subject to limitations, including the potential for response bias inherent in self-reported data and the limited generalizability of results from a single retail chain in Isfahan. Future research should employ mixed-method approaches and expand the scope to diverse geographic and industrial contexts. Ultimately, by operationalizing green economy practices, Etka can effectively leverage sustainability to attract environmentally conscious consumers and drive sustainable growth.

Keywords

Main Subjects

References

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History

  • Receive Date: 12 March 2025
  • Revise Date: 10 September 2025
  • Accept Date: 21 October 2025

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