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Green Packaging as a Branding Strategy: How Eco-Friendly Materials Influence Brand Image and Customer Loyalty

STIE Malangkucecwara, Jl. Terusan Candi Kalasan, Malang 65142, Indonesia Dwi Nita Aryani Ng Wei Chien Universiti Sains Malaysia, Jalan Sg Dua, 11800 Minden, Pulau Pinang, Malaysia Gan Kia Hui +13 lainnya

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Plastic pollution and rising sustainability awareness have shifted consumer expectations toward environmentally responsible packaging. This study examines how green packaging influences brand equity and customer loyalty, focusing on Quaker Oats Malaysia. It specifically investigates the roles of environmental awareness, customer perception, willingness to pay, and brand image, with brand equity serving as a mediating variable. A quantitative survey of 150 Malaysian consumers aged 18–44 was conducted and analyzed using multiple regression in SPSS. The results indicate that willingness to pay (β = 0.323, p < 0.01), brand image (β = 0.745, p < 0.001), and brand equity (β = 0.367, p < 0.01) significantly affect customer loyalty and brand strength. Environmental awareness also positively affects brand equity (β = 0.161, p < 0.05) but has no direct effect on loyalty. Mediation analysis confirms that brand equity fully mediates the effects of environmental awareness and brand image on loyalty, explaining 64.6% of the variance in loyalty and 73.4% in equity. These findings emphasize that sustainability-driven brand equity transforms ethical initiatives into customer trust and long-term loyalty, making green packaging both an environmental and strategic advantage for consumer brands.