Determinants of customer loyalty of green products – The case of Gogoro in Taiwan

Abstract

Nowadays, it has been well known that economic growth should be accompanied by the minimization of ecological degradation, as well as attention to social problems. Consequently, an increasing number of companies are working on the development of environmentally friendly products and concepts such as design for green product development, green product design, and green product innovation have come to the forefront. Prior research has extensively explored consumer motivation for acquiring green products, the profiles of a "typical" green consumer, and how to orchestrate marketing programs that influence the purchase of green products but there is still little research exploring the customer loyalty of green product, though the realization of sustainable development of the environment needs the customers to continue buying the green products. Gogoro is one of the green products which intended to fix the dilemma between the convenience of transportation and ecological degradation in Taiwan. The purpose of this study is to take Gogoro as a case to examine the factors that will affect the customer satisfaction and customer loyalty of a green product. A sample of 208 respondents was collected. The SPSS and PLS-SEM were applied to conduct the statistical analysis. The results show that function, usability, price, and brand image will affect customer satisfaction significantly. Brand image will affect customer satisfaction most, followed by function. The managerial implication will be discussed based on the results.