Building brand loyalty through green marketing the influence of green knowledge and brand image in cosmetics Building brand loyalty through green marketing the influence of green knowledge and brand image in cosmetics
Introduction
The Vietnamese cosmetics industry has experienced rapid growth, becoming one of the most vibrant sectors in the country's retail market Driven by a rising middle class and increasing disposable income, Vietnamese consumers are increasingly interested in beauty products that reflect their changing values and preferences In 2022, Vietnam’s retail cosmetics market generated $2.2 billion USD in revenue, with forecasts estimating it will reach $2.69 billion USD by 2027 This sector has seen an impressive annual growth rate of 30% in recent years, highlighting substantial opportunities for businesses to capitalize on the growing demand for beauty products.
Figure 1: Revenue of the cosmetics retail market in Vietnam in the period 2018 - 2027 (expected)
The increasing demand for natural cosmetics in Vietnam reflects a global shift toward sustainability and eco-friendly beauty products Growing environmental awareness and concerns for personal wellness are driving consumers to support local and eco-conscious brands This trend creates a significant opportunity for cosmetics companies to adopt green marketing strategies to attract the expanding eco-conscious customer base Worldwide, the beauty industry is experiencing a paradigm shift, with consumers prioritizing sustainability and environmental responsibility As consumers become more conscious of environmental protection, they are more willing to invest in eco-friendly products, influencing purchasing decisions across markets, including Vietnam.
Green marketing has become a key strategic approach for cosmetics brands to meet evolving consumer expectations for sustainability It goes beyond traditional promotion by showcasing commitments to social responsibility and environmental protection through eco-friendly practices such as sustainable packaging, natural ingredients, and ethical sourcing By adopting these practices, cosmetics brands can position themselves as sustainability leaders, attracting the growing segment of environmentally conscious consumers Vietnamese consumers, similar to their global counterparts, are increasingly willing to pay a premium for sustainable products, presenting opportunities for brands to effectively use green marketing strategies to engage and expand their customer base.
Green marketing plays a crucial role in shaping the brand image of cosmetics companies by emphasizing environmental responsibility and sustainability, which can enhance brand loyalty through alignment with consumer values (Chen et al., 2015) Research by Peattie (2010) shows that sustainability-focused marketing campaigns attract a larger market share and positively influence consumers' green consumption attitudes Jeong et al (2014) found that positive consumer perceptions of green marketing improve both brand image and brand loyalty, highlighting their interconnected nature A strong brand image is vital for creating a competitive advantage by fostering favorable perceptions of products, leading to increased customer loyalty Additionally, Sun and Kim (2013) emphasize that customer loyalty is essential to business success, especially in highly competitive industries like cosmetics, by significantly impacting overall company performance.
Green marketing's effectiveness in enhancing brand image and fostering customer loyalty is significantly influenced by consumers’ green knowledge, which refers to their understanding of environmental issues and sustainable practices (Lin & Chen, 2017) Consumers with higher green knowledge are more adept at assessing the authenticity of green marketing efforts, leading to stronger perceptions of brand credibility (Jalu et al., 2023) A robust brand image resulting from authentic green marketing encourages brand loyalty, as consumers trust and develop emotional bonds with brands that share their environmental values—especially important in the cosmetics industry where concerns about greenwashing and misleading environmental claims are common, making authenticity vital for consumer trust (Chen & Chang, 2012).
Consumers with greater green knowledge are more likely to trust brands that demonstrate genuine sustainability, which encourages brands to adopt effective green marketing strategies and enhances their image as socially responsible entities This green knowledge acts as a crucial driver, triggering a chain of effects that shape green marketing practices, strengthen brand reputation, and foster loyalty among eco-conscious consumers In the cosmetics industry, consumer environmental awareness is vital for the success of sustainability-driven branding efforts, emphasizing the importance of educating consumers about green practices.
This study explores how green marketing influences brand loyalty in the cosmetics industry by shaping a positive brand image It emphasizes the role of green knowledge as a crucial driver of sustainable marketing practices, enabling brands to engage environmentally conscious consumers effectively By analyzing these relationships, the research provides insights into the effectiveness of sustainability-focused marketing strategies and how a strong brand image enhances customer loyalty Additionally, it highlights the importance of green knowledge in motivating companies to commit to sustainability The findings aim to guide cosmetics brands in Vietnam’s dynamic market, helping them meet the rising consumer demand for ethical and eco-friendly products through strategic green marketing.
Literature Review
Green Knowledge
Green knowledge encompasses understanding environmental issues, sustainability practices, and ecological impacts, shaping consumer awareness of topics such as climate change and pollution along with practical skills for sustainable consumption (Fryxell & Lo, 2003; Zsóka et al., 2012) It originates from diverse sources including formal education, media exposure, and personal experiences, which collectively influence environmental consciousness (Nguyen et al., 2018) In the cosmetics industry, green knowledge significantly impacts consumer attitudes and behaviors toward sustainable products (Chen & Chang, 2012) Consumers acquire green knowledge through educational initiatives, social media platforms like TikTok and Instagram featuring influencers and viral campaigns, as well as personal experiences such as participating in environmental campaigns or using eco-friendly products (Ummar et al., 2023; Kumar et al., 2022) Higher levels of green knowledge enable consumers to critically evaluate brands’ environmental claims and prefer those aligned with their values (Nguyen et al., 2018) This awareness encourages brands to innovate sustainably, avoid greenwashing, and build trust through genuine green marketing efforts (Dangelico & Vocalelli, 2017; Testa et al., 2013) In the cosmetics sector, digitally empowered consumers and eco-certifications drive demand for accountability, leading them to favor brands committed to sustainability, which enhances brand image and fosters loyalty (Smith & Brower, 2012).
In Vietnam, rising green knowledge among young consumers is driven by increased access to digital media and heightened environmental awareness According to Vietdata (2023), 70% of Vietnamese Gen Z consumers are influenced by social media campaigns that promote sustainability, making them more likely to choose eco-friendly cosmetic products Consumers with higher green knowledge tend to recognize and appreciate the efforts of local brands like Cocoon, which uses natural ingredients such as pomelo essential oil, turmeric, coconut oil, and recycled packaging As a result, green knowledge plays a crucial role in activating the Vietnamese cosmetics market, enhancing the effectiveness of green marketing strategies in building brand image and fostering brand loyalty among young consumers.
Chen & Chang (2012) highlight that green knowledge significantly influences consumers' perceptions and responses to green marketing strategies Consumers with higher environmental awareness are more capable of recognizing credible sustainability claims and distinguishing genuine efforts from greenwashing This study emphasizes that green knowledge is a crucial factor that moderates the effectiveness of green marketing efforts, especially among Vietnamese consumers, underscoring the importance of strategic green knowledge initiatives in fostering trust and engagement.
Green Marketing
Green Marketing involves promoting products or services based on their environmental benefits to meet the rising consumer demand for sustainable goods (Dangelico & Vocalelli, 2017) In the cosmetics industry, adopting green marketing strategies has become essential as consumers increasingly prioritize eco-friendly products Key dimensions of green marketing include green advertising, eco-conscious product development, and sustainable branding practices, all of which help strengthen a brand’s environmental reputation (Chen).
Green advertising emphasizes a brand’s commitment to sustainability through marketing messages that highlight eco-friendly practices, such as cruelty-free and vegan products Brands like The Body Shop have successfully used green advertising to appeal to environmentally conscious consumers Additionally, green product development focuses on creating products with natural ingredients, sustainable packaging, and a reduced carbon footprint In the cosmetics industry, companies like Lush demonstrate this approach by using minimal packaging and ethically sourced ingredients, aligning with consumer demands for transparency and sustainability.
The cosmetics industry is experiencing a surge in Green Marketing driven by increasing consumer awareness of environmental issues, with 60% of young Asian consumers willing to pay more for sustainable products, highlighting its potential in markets like Vietnam (Statista, 2023) Recent studies by Ummar et al (2023) demonstrate that Green Marketing campaigns on social media platforms such as TikTok and Instagram significantly influence Gen Z consumers' attitudes and behaviors These campaigns effectively utilize influencer marketing and user-generated content to enhance their reach and shape positive consumer perceptions (Chen & Chang).
Brands like Cocoon have effectively implemented Green Marketing strategies by utilizing recycled packaging and natural ingredients like pomelo essential oil, appealing to Vietnamese consumers This approach aligns with Vietnam’s rising focus on sustainability, as the cosmetics market is projected to reach $2.69 billion by 2027 Green marketing strategies that emphasize transparency, authenticity, and social responsibility are highly effective in enhancing brand image and fostering customer loyalty in Vietnam.
Brand Image
Brand image encompasses the collective perceptions, beliefs, and associations that consumers hold about a brand, shaped by their experiences, marketing communications, and interactions with the company (Keller, 1993) It is essential for differentiating a brand in competitive markets and significantly influences consumer trust, purchase intentions, and overall brand loyalty (Aaker) A strong and positive brand image can enhance brand recognition and foster long-term customer relationships, making it a vital component of effective brand management and marketing strategies.
A positive brand image is crucial for building consumer confidence and encouraging repeat purchases It also promotes positive word-of-mouth (WOM), which is vital in reputation-driven industries like cosmetics According to Keller (1993), strong brand perception enhances customer loyalty and attracts new customers through effective brand advocacy.
In green marketing, brand image is closely tied to perceptions of environmental responsibility and sustainability commitment Strategies like green advertising and eco-friendly product development act as signals that influence consumer perceptions of a brand’s environmental values Today’s consumers expect brands to embed sustainability into their core principles, and a strong green brand image offers a competitive edge Sustainability initiatives such as reducing carbon footprints, sourcing ethical ingredients, and transparent reporting enhance brand trustworthiness and social responsibility For example, brands like Lush have built a strong green brand image through minimal packaging and ethical sourcing, setting themselves apart in the competitive cosmetics industry.
Building a strong brand image through Green Marketing is increasingly vital for Vietnamese brands, as sustainability resonates with local consumers’ values of transparency and authenticity For example, brands like Cocoon have enhanced their reputation by using natural ingredients and recycled packaging, demonstrating their commitment to eco-friendly practices Social media platforms such as TikTok and Instagram play a crucial role in amplifying these efforts, enabling brands to showcase their sustainability initiatives through influencer campaigns and engaging content creators A well-established green brand image not only attracts new customers but also fosters brand loyalty among existing consumers by aligning with their environmental values, thereby strengthening the brand's position in the Vietnamese market.
Brand Loyalty
Brand loyalty represents the degree to which consumers consistently prefer and commit to a specific brand, demonstrating repeat purchase behavior and advocacy over time (Oliver, 1999)
Brand loyalty is a critical factor for long-term business success, as loyal customers drive higher lifetime value, reduce marketing expenses, and enhance brand equity (Keller, 1993) In the context of green marketing, consumers’ perceptions of a brand’s environmental performance and sustainability efforts significantly influence their loyalty (Lin et al., 2019).
Empirical research indicates that green marketing efforts build a positive brand image, which significantly enhances brand loyalty by fostering consumer trust and emotional connection (Chen et al., 2018) Consumers are more loyal to eco-friendly brands when they recognize tangible environmental benefits such as waste reduction and ethical sourcing (Panda et al., 2019) Additionally, consumers' green knowledge is crucial in strengthening this loyalty, especially within the cosmetics industry where environmentally conscious buyers prioritize sustainability and values-aligned brands (Román-Augusto et al., 2022) For example, Vietnamese Gen Z consumers who learn about green practices through social media platforms like TikTok and Instagram tend to favor brands like Cocoon that emphasize natural ingredients and recycled packaging, demonstrating a strong commitment to environmental sustainability (Vietdata, 2023).
In the Vietnamese cosmetics market, brand loyalty among Gen Z consumers is significantly influenced by the interaction of Green Knowledge, Green Marketing, and Brand Image Local brands like Cocoon have effectively built loyalty by implementing green marketing strategies that align with Gen Z’s values, particularly through social media campaigns on TikTok with hashtags such as #GreenBeauty and #Sustainability These campaigns foster emotional connections with consumers who prioritize sustainability, thereby strengthening brand loyalty Additionally, a robust green brand image further reinforces consumer trust and commitment toward these eco-conscious brands (Ummar et al., 2023).
Current Status of the Research Problem
Growing environmental awareness has significantly shifted consumer expectations in the cosmetics industry, with a strong demand for genuine sustainability claims (Chen et al., 2018) Research highlights that authentic green marketing enhances brand image and fosters customer loyalty, emphasizing the importance of credible eco-friendly practices (Jeong et al., 20XX).
Despite existing research highlighting that green knowledge influences eco-friendly behaviors (Kaiser & Fuhrer, 2003), significant gaps remain in understanding its role as a precursor to sustainable decision-making Specifically, the impact of green knowledge on consumers’ interpretation of cosmetic brands’ sustainability claims warrants further investigation to better comprehend how awareness shapes perceptions and behaviors in the beauty industry.
The cosmetics sector presents unique challenges for green marketing, including complex verification of eco-claims and varying consumer awareness levels (Dangelico & Vocalelli,
This study explores how green knowledge influences brand loyalty in the cosmetics industry by examining the mediating roles of marketing communications and brand perception It addresses existing research gaps, particularly the unclear pathways linking green knowledge to brand loyalty and the impact of greenwashing concerns By investigating how green knowledge interacts with marketing strategies, the findings offer valuable insights for building sustainable consumer relationships and enhancing brand trust in environmentally conscious markets.
Research Gap
Despite widespread recognition of green marketing’s influence on consumer behavior (Peattie, 2010; Jeong et al., 2014), significant research gaps remain in emerging markets such as Vietnam (Chen et al., 2018) While green knowledge encourages pro-environmental actions (Kaiser & Fuhrer, 2003), its specific role in shaping Vietnamese consumers’ understanding of sustainability claims by cosmetic brands has yet to be explored Limited studies have investigated how different levels of green knowledge among consumers impact their interpretation of eco-labels and sustainable packaging within the competitive cosmetics industry Furthermore, there is a lack of research on how Vietnamese consumers, who increasingly prioritize sustainability but face resource and knowledge constraints, engage with green marketing strategies and develop brand loyalty This study aims to fill these critical gaps by examining the effectiveness of green marketing in Vietnam’s unique cultural and economic context.
Developing Hypotheses
7.1 Green Knowledge and Green Marketing
Green knowledge involves awareness and understanding of environmental issues and sustainable practices, encompassing both theoretical insights, such as climate change impacts, and practical applications like eco-friendly technologies, which empower informed sustainability decisions In green marketing, this foundational knowledge is essential for developing environmentally responsible strategies that effectively promote sustainable products and practices.
Green knowledge is essential for businesses to implement effective sustainability initiatives and enhance marketing communication, as it helps align practices with consumer expectations and regulatory standards (Dangelico & Vocalelli, 2017) Companies with a deeper understanding of environmental issues are more likely to invest in sustainable innovation and authentic eco-branding, such as ethical sourcing and biodegradable packaging in the cosmetics industry (Bang et al., 2000; Román et al., 2022) Environmentally aware consumers demand transparency, driving brands to improve their green marketing efforts and strengthen brand trust through effective communication of their environmental commitments, supported by Signaling Theory (Drobot et al., 2020; Jalu et al., 2023) Overall, green knowledge is a crucial factor enabling businesses to develop and respond to emerging sustainable market trends.
Hypothesis 1: Green Knowledge has a positive and significant effect on Green Marketing in the cosmetics industry
7.2 Green Marketing and Brand Image
Green marketing, focusing on sustainability and ethical responsibility, has become vital in environmentally conscious industries like cosmetics Brands that incorporate natural ingredients, cruelty-free policies, and recyclable packaging can boost their reputation and attract eco-minded consumers (Chen & Chang, 2012) Certifications such as ECOCERT and Fair Trade further reinforce a brand’s commitment to ethical practices, enhancing its credibility and appeal (Dangelico & Vocalelli, 2017) Companies like The Body Shop and Lush have successfully leveraged sustainability in their branding strategies, drawing in environmentally conscious customers.
Research confirms that green marketing positively influences brand image Dangelico and Pujari (2010) found that eco-friendly innovations reinforce consumer trust, while Kumar et al
In 2022, research emphasized that transparent sustainability communication through social media and certifications significantly enhances brand perception According to Signaling Theory, these initiatives serve as credible commitments to environmental responsibility, strengthening consumer trust (Jalu et al., 2023) However, inauthentic claims, known as greenwashing, pose a risk of consumer backlash, which can undermine overall brand credibility and trust.
2013) Thus, genuine sustainability efforts, effectively communicated, are essential for maintaining a strong, trusted brand image in competitive markets
Hypothesis 2: Green Marketing has a positive and significant effect on Brand Image in the cosmetics industry
7.3 Brand Image and Brand Loyalty
Brand image is shaped by consumers' perceptions and attitudes, influenced by personal experiences and marketing efforts, and plays a crucial role in fostering brand loyalty through trust and emotional connection (Keller, 2013; Oliver, 1999; Aaker, 1996) In the cosmetics industry, a positive brand image, especially one that emphasizes sustainability, is highly impactful, as personal values often align with eco-friendly practices (Román et al., 2022) A green brand image boosts trust and perceived value, leading to stronger brand loyalty (Chen et al., 2020) For instance, Lush’s commitment to ethical practices justifies its premium pricing and cultivates loyalty among environmentally conscious consumers (Panda et al., 2020).
Brand Equity Theory highlights that a strong, positive brand image enhances customer retention and decreases price sensitivity (Keller, 2013) The Theory of Planned Behavior (Ajzen, 1991) indicates that sustainability-focused attitudes significantly strengthen consumers' purchase intentions Transparent communication about green initiatives fosters trust and credibility, whereas misleading claims can lead to consumer backlash and damage brand reputation (Kumar et al., 2022; Testa et al., 2022).
2013) Thus, authentic sustainability efforts are vital for sustaining loyalty in competitive markets
Hypothesis 3: Brand Image has a positive and significant effect on Brand Loyalty in the cosmetics industry
7.4 Green Marketing and Brand Loyalty
Green marketing has emerged as a powerful driver of brand loyalty in the cosmetics industry by aligning with consumers' growing environmental values This relationship is rooted in the
Theory of Planned Behavior, where sustainable practices shape purchasing intentions (Ajzen,
Empirical research demonstrates that eco-friendly packaging, cruelty-free certifications, and transparent sustainability communication enhance emotional bonds with conscious consumers This is especially true among young, socially-active demographics, such as those in the study sample, where 65.5% are aged 18-25 and 80% show a strong interest in sustainability.
Green marketing independently influences consumer loyalty, even when considering the mediating role of brand image Consumers tend to stay committed to brands that demonstrate genuine environmental responsibility, such as initiatives focused on microplastic reduction and carbon neutrality The widespread digital engagement among consumers, with over 50% using social media daily, enhances green marketing's ability to build loyalty through targeted campaigns and eco-labeling strategies.
Hypothesis 4: Green Marketing has a direct and positive impact on Brand Loyalty in the cosmetics industry.
Theoretical Framework
Figure 2: Basic Framework of Signalling Theory (Adapted from general representations of Signalling Theory (Connelly et al., 2010))
This study is based on Signalling Theory, which explains how information is communicated under conditions of asymmetry, initially developed by Spence (1973) to demonstrate how education signals productivity in labor markets The theory has been extended to marketing and sustainability, suggesting that brands (signalers) use observable signals such as eco-labels and sustainable packaging to convey unobservable qualities like environmental responsibility to consumers (receivers) These signals help reduce uncertainty and influence consumer decision-making (Connelly et al., 2010; Erdem & Swait, 1998; Kirmani & Rao, 2000).
In the cosmetics industry, information asymmetry often leaves consumers unaware of the true environmental impact of products Green marketing functions as a crucial signal from brands, showcasing their commitment to sustainability and positively influencing brand image and loyalty (Jalu et al., 2023) Consumers with extensive green knowledge encourage brands to adopt authentic eco-friendly strategies, exemplified by The Body Shop’s fair-trade practices and Burt’s Bees’ minimal packaging (Smith & Brower, 2012; Zhou et al., 2021) These green signals help shape perceptions of environmental responsibility, build trust, and differentiate brands in a competitive market (Keller, 1993), ultimately fostering brand loyalty through repeat purchases and advocacy (Román et al., 2022) Additionally, consumer responses—whether in sales or criticism—create a feedback loop that refines sustainability efforts, emphasizing the dynamic role of green knowledge as a key factor influencing green marketing, brand image, and loyalty within Vietnam’s cosmetics industry (Connelly et al., 2010; Dangelico & Vocalelli, 2017; Kaiser & Fuhrer, 2003).
Within this framework, Green Marketing acts as a signal that influences Brand Image by communicating a brand’s environmental values A strong green Brand Image fosters Brand
Loyalty by creating an emotional connection with consumers who prioritize sustainability Brand Loyalty is the behavioral outcome resulting from a positive brand image
8.2 Theory of Planned Behavior (TPB)
The Theory of Planned Behavior (TPB), introduced by Ajzen in 1991, explains that human behavior is primarily influenced by three key factors: attitudes toward the behavior, subjective norms, and perceived behavioral control These elements work together to shape individuals' behavioral intentions, which ultimately determine their actions Understanding TPB is essential for predicting and influencing behaviors across various contexts.
Figure 3: Framework of Theory of Planned Behavior (TPB)
Attitudes represent an individual's favorable or unfavorable evaluation of a specific behavior, influencing their likelihood to engage in it Subjective norms involve perceived social pressure from significant others—such as friends, family, and community members—that can either encourage or discourage the behavior Perceived behavioral control refers to how much control an individual believes they have over performing the behavior, which is shaped by available resources, opportunities, and self-confidence Understanding these three factors is essential for predicting and influencing behavioral intentions.
This study highlights that Green Knowledge significantly influences consumers' attitudes toward green brands, fostering positive perceptions Green Marketing plays a crucial role in shaping both consumers' attitudes and subjective norms related to green consumption, encouraging environmentally conscious behaviors Brand Image (BI) reinforces positive attitudes towards green brands, serving as a key factor in consumer perception Ultimately, Brand Loyalty reflects the behavioral commitment driven by these positive attitudes and social influences, emphasizing the importance of a strong brand reputation in fostering long-term customer engagement in green products.
By integrating Signalling Theory and TPB, this study provides a comprehensive framework explaining how green marketing signals are transmitted and interpreted, and how these perceptions translate into consumer loyalty behavior.
Conceptual Framework
This study's conceptual framework highlights the sequential influence of green knowledge, green marketing, brand image, and brand loyalty within the cosmetics industry Green knowledge acts as a key driver, prompting the adoption of green marketing strategies as environmentally conscious consumers demand transparency and sustainability Green marketing serves as a strategic signal of a brand’s ecological responsibility, shaping a positive brand image that fosters consumer trust and emotional connection A strong, credible green brand image significantly enhances brand loyalty by encouraging repeat purchases and advocacy Moreover, brand image mediates the relationship between green marketing and brand loyalty, indicating that sustainability efforts impact consumer commitment through perception and cognition Utilizing TPB and Signaling Theory, this framework emphasizes how consumer knowledge influences brand sustainability practices and how these practices, in turn, boost brand perception and loyalty in the cosmetics sector.
Figure 4:The proposed conceptual framework
Research Methodology
Research Design
This study explores the sequential impact of green knowledge on green marketing strategies within Vietnam's cosmetics industry, highlighting how these strategies shape brand image and foster brand loyalty Utilizing a survey with a 5-point Likert scale, data from environmentally conscious consumers was analyzed using Structural Equation Modeling (SEM) SEM effectively captures complex causal relationships and latent variables, making it ideal for testing the proposed model The findings demonstrate that increased green knowledge positively influences green marketing efforts, which in turn enhance brand image and ultimately strengthen brand loyalty among consumers.
Data Collection Method
This study utilized an online survey to collect primary data on Green Marketing (GM), Brand Image (BI), Brand Loyalty (BL), and Green Knowledge (GK) using a 5-point Likert scale, ensuring accurate measurement aligned with best research practices (Hair et al., 2019) The digital methodology allowed for efficient and timely data collection from Vietnam's young, socially active cosmetics consumers, providing real-time insights into their perceptions of green marketing By employing standardized questions, the survey minimized bias, enhancing the reliability and validity of the findings on green marketing strategies and consumer behavior.
This study incorporated secondary data from academic journals, books, industry reports, and market research studies to establish a solid theoretical foundation and contextual understanding These sources were essential for defining key concepts such as green marketing, brand perception, consumer loyalty, and sustainability within the cosmetics industry They supported the development of the theoretical framework and validated the findings derived from primary data analysis, ensuring a comprehensive and credible research approach.
This study focused on Vietnamese consumers aged 18 to 35 who purchase cosmetics and follow green brands on social media Using purposive sampling, 200 valid responses were collected to ensure data relevance and reliability To maintain data integrity, 20 incomplete or inconsistent responses were removed during data cleaning, ensuring the accuracy of the analysis.
Sampling method
This study used purposive sampling to select 200 Vietnamese cosmetics consumers aged 18-35 who purchased cosmetics within the past six months and followed green beauty brands on social media platforms such as Instagram, Facebook, and TikTok This sampling method ensured participants had recent and relevant exposure to green marketing strategies, which is critical for examining the impact of green knowledge, green marketing, brand image, and brand loyalty The approach provided valuable insights into how green marketing influences consumer perceptions and loyalty among young Vietnamese cosmetic buyers (Saunders et al., 2022).
The sample size met SEM requirements, ensuring data adequacy for robust analysis (Hair et al., 2019), and aligns with comparable marketing research standards (Malhotra et al., 2017) Digital recruitment strategically targeted Vietnam's tech-savvy youth demographic, recognized for their active engagement in sustainability issues (Ghazali et al., 2017) To enhance data quality, platform-specific outreach was employed to minimize non-response bias, ensuring more accurate and representative results.
Pilot testing
A pilot test involving 15 respondents aged 18-35 who had recently purchased cosmetics was conducted in November 2024 to evaluate the questionnaire's clarity, flow, and technical functionality Participants identified minor formatting issues for mobile users, which were promptly corrected, leading to improved question comprehension and reduced response bias Additionally, adjustments to the survey length minimized participant fatigue, ensuring higher data quality for the main study This process aligns with best practices for survey design and enhances overall research reliability (Bryman, 2016).
Scale Development
GK1 I use eco-friendly products and packaging
GK2 I choose products and packing that minimize landfill waste Jalu et al (2023)
GK3 I understand product container environmental symbols
GK4 I have strong knowledge of environmental issues related to consumer products
GK5 I am aware of the environmental impact of cosmetics production processes
GM1 I love products with eco-friendly packaging materials
GM2 I think the ingredients used in these products are qualified Fatmawati and
GM3 The packaging is easy to recycle Fatmawati and
GM4 The promotion is paperless Fatmawati and
GM5 This brand’s environmental messages in its cosmetics
GM6 This brand’s environmental promotions for its cosmetics products are honest
BI1 This brand is perceived as prestigious in the cosmetics industry
BI2 This brand is trusted for its commitment to sustainability
BI3 This brand is known for its quality products
BI4 This brand is known for its environmental friendliness
BI5 This brand offers products that are worth the price
BL1 Their environmental benefits make me want to use it again
BL2 Because they are eco-friendly, I’ll keep using these products
BL3 This brand’s eco-consciousness keeps me loyal Jalu et al (2023)
BL4 Their environmental performance makes me prefer this brand Jalu et al (2023)
Data Analysis
This study employed a comprehensive analytical approach, combining SmartPLS 4 for PLS-SEM analysis and SPSS for initial data screening to ensure data quality Data preparation involved checking for missing values, outliers, and normality, with skewness and kurtosis within acceptable ranges The measurement model demonstrated high reliability, with Cronbach's Alpha and Composite Reliability scores above 0.70, and validity was confirmed through Average Variance Extracted values exceeding 0.50 and the Fornell-Larcker criterion The PLS-SEM analysis, using 5,000 bootstrap samples, effectively examined the relationships between green marketing, brand image, and brand loyalty, while also assessing green knowledge's role within the model This approach was ideal for handling complex path models with smaller sample sizes while maintaining strong statistical power, adhering to methodological guidelines for structural equation modeling.
Ethical Considerations
This study adhered to strict ethical standards by providing participants with comprehensive information about the research, ensuring voluntary participation, and guaranteeing confidentiality and data security in compliance with institutional and Vietnamese data protection regulations Participants, including minors with parental consent, completed an online survey offered in both Vietnamese and English to promote inclusivity while maintaining anonymity through the collection of no personally identifiable information and the use of aggregated data for academic purposes All procedures followed ethical protocols, emphasizing participant rights to withdraw at any time and secure data storage on password-protected systems, in alignment with ethical guidelines (Saunders et al., 2022; Resnik, 2018).
Data Analysis and Results
Characteristic of Respondents
The gender distribution of respondents reveals a significant predominance of female participants, with 75% (150 out of 200) identifying as female, compared to 25% (50 out of 200) identifying as male The data, presented through a frequency table and pie chart, confirms that all responses were accurately recorded without missing data, ensuring the dataset's reliability and validity.
The gender imbalance in the study reflects the cosmetics industry's focus on female consumers, who are more engaged with beauty-related content and green social media campaigns Women are generally more influenced by sustainability and ethical branding, making them a crucial demographic for research on green marketing and brand image in the cosmetics industry.
The higher proportion of female respondents aligns with industry trends, but it’s important to acknowledge this demographic skew when interpreting the findings, as insights may primarily reflect female consumer behavior Although male perspectives are less represented, they remain valuable, especially as the cosmetics industry increasingly targets male consumers Future research should consider more gender-balanced samples to offer a comprehensive understanding of customer loyalty in the sustainable cosmetics sector.
The age distribution of respondents reveals that the majority of participants are in the 18-25 years old age group, as shown by the frequency table and pie chart This indicates that young adults constitute the largest segment of the study population.
Analysis of the respondent demographics shows that 131 individuals, representing 65.5%, fall within a specific age category, followed by 39 respondents (19.5%) aged 26-35 years old The under 18 group accounts for 28 respondents (14%), while only 2 participants (1%) are in the 36-55 years age bracket The total percentages confirm that all responses were valid and accurately recorded, ensuring the dataset's reliability for meaningful insights.
The predominance of respondents aged 18-25 reflects the cosmetics industry's focus on young consumers, who are highly active on social media and receptive to green marketing strategies The interest of respondents under 18 indicates that sustainable beauty trends are appealing to even younger audiences, while the lower participation of middle-aged and older consumers suggests they are less engaged with green social media campaigns within the cosmetics sector.
When analyzing customer loyalty and brand image in the cosmetics industry, it is essential to consider age distribution, as younger consumers often have different purchasing behaviors, brand perceptions, and environmental concerns compared to older demographics The study's findings mainly reflect the attitudes and preferences of young adults, which should be acknowledged to develop effective marketing strategies and target the right audience Recognizing these demographic differences ensures more accurate insights and enhances the overall effectiveness of brand positioning and engagement efforts.
The occupational distribution of respondents reveals key insights into consumer behavior and purchasing patterns in the cosmetics industry, especially regarding green marketing and brand loyalty Students, making up 52% of respondents, primarily belong to the 18-25 age group, a demographic highly engaged with social media and environmentally conscious purchasing This group tends to favor affordable yet sustainable brands that reflect their ethical values Full-time workers, representing 32.5%, have higher disposable incomes, enabling frequent and premium cosmetic purchases driven by loyalty, product quality, and ethical considerations—making them ideal for premium green brands focused on sustainability Part-time workers, constituting 15.5%, demonstrate more flexible yet budget-conscious spending habits, often choosing mid-range sustainable cosmetic brands over luxury options These occupational segments are crucial for understanding targeted marketing strategies in the green cosmetics sector.
The study highlights a significant absence of retired individuals, indicating that insights are primarily drawn from younger, working-age consumers This underscores the importance of digital marketing strategies, as younger demographics are more engaged with online advertising, influencer marketing, and sustainability-focused branding Brands should prioritize social media campaigns on platforms like Instagram, TikTok, and YouTube, which are highly influential among Gen Z and millennials To boost customer engagement, companies can implement subscription services, student discounts, and loyalty programs that appeal to both price-sensitive and loyal consumers.
Figure 8: Social Media Usage Frequency
Social media usage has a significant impact on cosmetic purchasing behaviors, with 42% of users engaging a few times daily and over 50% accessing platforms multiple times a day This high engagement highlights the crucial role digital platforms play in shaping consumer preferences and decision-making processes As a primary source of information, social media heavily influences consumer attitudes toward brands, product choices, and purchasing decisions, underscoring its importance in the cosmetics industry.
Cosmetic purchasing habits reveal a consistent pattern, with 34% of consumers buying products every 2-3 months and 19.5% making monthly purchases, highlighting cosmetics as a routine and essential expense Younger demographics often explore new products, follow beauty trends, and respond to digital advertising, emphasizing the influence of social media platforms like Instagram, TikTok, YouTube, and Facebook These platforms significantly shape consumer perceptions through influencer marketing, user-generated content, brand collaborations, and targeted ads, making social media a powerful tool for boosting brand awareness and driving sales in the beauty industry.
Consumers increasingly rely on recommendations and reviews from online beauty communities and influencers before making purchase decisions Social media plays a crucial role in shaping customer trust and brand loyalty by showcasing user-generated content, influencer endorsements, and sustainability claims For brands implementing green marketing strategies, social media is an effective platform to communicate eco-friendly values, ethical sourcing practices, and sustainable production methods, thereby attracting environmentally conscious consumers.
Social media-driven promotional strategies significantly influence cosmetic purchase behavior by creating urgency through seasonal discounts, limited edition launches, and influencer collaborations Highly active social media users are more exposed to these marketing tactics, which encourage repeat purchases and increased spending To capitalize on this, beauty brands should leverage engaging content such as tutorials, live demonstrations, customer testimonials, and exclusive online discounts to boost customer engagement and improve conversion rates.
1.5 Consumer Interest in Green Cosmetics
Figure 10: Consumer Interest in Green Cosmetics
Consumer interest in green cosmetics is growing, with over 80% of respondents showing enthusiasm for sustainable beauty products Specifically, 37.5% are very interested, while 44.5% consider eco-friendliness important, though not a top priority This demonstrates that a significant number of consumers value sustainability, including eco-friendly ingredients, ethical sourcing, and sustainable packaging However, there is a segment of consumers less engaged with green cosmetics, with 14% showing little interest and 4% expressing no interest at all.
While sustainability is increasingly important to consumers, it is just one of many factors influencing purchasing decisions, alongside product quality, price, brand reputation, and performance Many consumers show interest in eco-friendly cosmetics but remain hesitant due to higher costs or doubts about effectiveness compared to conventional products This highlights the need for brands to balance sustainability with affordability and innovative product development to reach a broader market The growing consumer interest in green cosmetics offers brands a strategic opportunity to enhance their sustainability efforts through transparent communication about ethical sourcing, cruelty-free certifications, and biodegradable packaging, thereby building trust and credibility Collaborating with green beauty influencers and sustainability advocates on social media can also effectively raise awareness and positively influence purchasing behavior, helping brands differentiate themselves in an increasingly eco-conscious marketplace.
Preliminary Analysis
The study evaluated the normality of data distribution from 200 respondents using both the Kolmogorov-Smirnov and Shapiro-Wilk tests, which provide different interpretations—values closer to 0 indicate normality in the Kolmogorov-Smirnov test, while values nearer to 1 suggest normality in the Shapiro-Wilk test Both tests consistently used a degrees of freedom (df) of 200, reflecting the sample size, which is essential for determining the statistical significance of the results.
The significance level (Sig.) of 0.000 in both tests indicates that all variables are statistically significant and that the null hypothesis of normality is rejected The Kolmogorov-Smirnov statistic values ranging from 0.202 to 0.279 and the Shapiro-Wilk statistic values between 0.780 and 0.862 confirm a significant deviation from normality across all observed variables (GK1 to BL4) Normality is essential for many statistical methods, such as t-tests and regression analysis, and deviations from this assumption can compromise the validity of these tests, potentially leading to errors in inference and interpretation.
2.2 Harman’s Single Factor / Common Method Variance
The analysis of Table 5 offers valuable insights into the potential impact of common method variance (CMV) on the dataset collected in Vietnam The Principal Component Analysis (PCA) results indicate that the first component explains only 38.569% of the total variance, which is below the 50% threshold, suggesting that CMV is unlikely to be a substantial concern However, further validation is necessary to confirm the absence of CMV and ensure the robustness of the study’s findings.
Employing a rigorous approach, such as the CFA-based unmeasured latent method construct test, can effectively account for shared variance among items and assess the significance of a latent method factor, thereby providing a more comprehensive evaluation of common method variance (CMV) Addressing CMV is essential for maintaining research validity, as it can otherwise result in biased estimates and inaccurate conclusions Although initial PCA results indicate that CMV may not be a significant concern, conducting additional analyses—including examining the correlation matrix and applying advanced statistical techniques—is recommended to ensure the reliability and robustness of the study’s findings.
Exploratory Factor Analysis (EFA)
Table 6: KMO and Barlett’s Test
The dataset comprising 19 items across constructs such as green knowledge, green marketing, brand image, and brand loyalty was evaluated for suitability in Exploratory Factor Analysis (EFA) using the Kaiser-Meyer-Olkin (KMO) Measure of Sampling Adequacy and Bartlett’s Test of Sphericity The KMO value of 0.832 exceeds the recommended threshold of 0.6 and falls into the "good" range, indicating that the sample size of 200 respondents and the correlations among items are highly appropriate for factor analysis (Kaiser, 1974) This high KMO score suggests that the data exhibits strong partial correlations, making it suitable for uncovering underlying factor structures within the model, where green knowledge influences green marketing, which in turn shapes brand image and fosters brand loyalty among young Vietnamese consumers in the cosmetics industry.
Bartlett’s Test of Sphericity produced a chi-square value of 2145.67 with 171 degrees of freedom and a p-value of 0.000, indicating significant correlations among items (Hair et al., 2019) Since the p-value is below the 0.05 threshold, the null hypothesis that the correlation matrix is an identity matrix is rejected, confirming the suitability of the dataset for exploratory factor analysis (EFA) These findings validate the appropriateness of conducting EFA to examine the underlying factor structure of measurement scales within the Vietnamese cosmetics market context.
The communalities of the 20 items were examined during the Exploratory Factor Analysis (EFA) to evaluate each item's contribution to the underlying constructs of green knowledge, green marketing, brand image, and brand loyalty among young Vietnamese consumers in the cosmetics industry The EFA, conducted using Principal Component Analysis with Varimax rotation, revealed communalities ranging from 0.385 to 0.722, with all values exceeding the acceptable threshold of 0.3, indicating a good fit with the factor solution Specifically, green knowledge items (GK1–GK5) had communalities between 0.498 and 0.643, green marketing items (GM1–GM6) ranged from 0.385 to 0.584, brand image items (BI1–BI5) fell between 0.540 and 0.700, and brand loyalty items (BL1–BL4) from 0.643 to 0.722, demonstrating that the factors explained a substantial proportion of variance in each item.
The GM2 item, "I think the ingredients used in these products are qualified," had the lowest communality of 0.385, indicating that only 38.5% of its variance was explained by the green marketing factor This suggests a focus on ingredient quality rather than explicit green marketing attributes like eco-friendly packaging or paperless promotions Despite this, it met the minimum threshold for retention, supporting the validity of the initial factor structure in the Vietnamese cosmetics market context These communality results confirm the measurement scales' appropriateness, providing a solid foundation for further CFA and structural model assessment.
The factor structure of the measurement scales was evaluated using the Rotated Component Matrix from Exploratory Factor Analysis (EFA) on 20 items (GK1–GK5, GM1–GM6, BI1–BI5, BL1–BL4) Principal Component Analysis with Varimax rotation and Kaiser Normalization identified four distinct components aligned with the four constructs Most items demonstrated strong loadings (above 0.5) on their respective factors, with low cross-loadings (below 0.3), confirming a clear and reliable factor structure for the measurement scales.
The analysis revealed that brand image items (BI1–BI5) strongly loaded on Component 1, with loadings ranging from 0.681 to 0.806, indicating their coherent association; green knowledge items (GK1–GK5) primarily loaded on Component 2 (0.500–0.748), confirming their distinct construct; and brand loyalty items (BL1–BL3) strongly loaded on Component 3 (0.813–0.835), supporting their separate identity Green marketing items (GM1–GM6) mainly loaded on Component 4, with GM4–GM6 showing loadings of 0.411 to 0.337, while GM1–GM3 also exhibited significant loadings on Component 1 (0.585–0.720), highlighting the overlap between green marketing efforts and brand image perceptions This overlap aligns with the understanding that green marketing strategies can influence brand image in the cosmetics industry (Jalu et al., 2023).
However, the brand loyalty item BL4: "Their environmental performance makes me prefer this brand" exhibited a negative and very low loading of -0.037 on its intended factor (Component
The analysis revealed that the item intended to measure Brand Loyalty did not align with its expected construct, as indicated by its high cross-loading of 0.792 on Component 4 (Green Marketing) This suggests that the item was more strongly associated with perceptions of green marketing rather than actual brand loyalty behaviors These findings highlight the importance of clear construct differentiation in marketing research to ensure accurate measurement of brand loyalty and green marketing perceptions.
A negative loading below 0.4 and a cross-loading above 0.3 suggest that BL4 does not clearly measure brand loyalty and could distort the factor structure Consequently, BL4 should be removed during this stage of exploratory factor analysis to ensure the integrity of the results.
This finding was consistent with the subsequent Confirmatory Factor Analysis (CFA) in SmartPLS 4, where BL4 had a negative factor loading of -0.036 and reduced the Cronbach’s alpha for brand loyalty to 0.554, below the acceptable threshold of 0.7, further justifying its exclusion (Hair et al., 2019) After removing BL4, the remaining 19 items (GK1–GK5, GM1–GM6, BI1–BI5, BL1–BL3) maintained a clear factor structure, with strong primary loadings and minimal cross-loadings, validating the measurement scales for the subsequent CFA and structural model assessment in the Vietnamese cosmetics market context.
Reliability and Validity Analysis
Cronbach's alpha Composite reliability (rho_a)
Table 9: Reliability and Validity Analysis
The analysis of construct reliability and validity is crucial in ensuring that the measurement model is robust and accurately reflects the underlying constructs The table presents key indicators, including Cronbach’s alpha, composite reliability (rho_a and rho_c), and average variance extracted (AVE) for the constructs Brand Image (BI), Brand Loyalty (BL), Green Knowledge (GK), and Green Marketing (GM)
The reliability assessment, as measured by Cronbach’s alpha, indicates that all constructs exceed the commonly accepted threshold of 0.7 (Hair et al., 2019) Specifically, the values range from 0.764 to 0.822, confirming that the constructs demonstrate high internal consistency This means that the individual items within each construct are strongly correlated and reliably measure the intended concept In addition to Cronbach’s alpha, composite reliability (rho_c) was also examined, as it is often considered a more accurate indicator of reliability since it accounts for differential loadings of measurement items The composite reliability values, ranging from 0.862 to 0.876, further support the conclusion that the constructs possess strong internal reliability, meaning that the measurement scales are stable and consistent over time
To evaluate the validity of the measurement model, convergent validity was assessed using Average Variance Extracted (AVE) AVE indicates the proportion of variance in measurement items explained by the underlying construct, with a recommended threshold of 0.5 or higher to confirm adequate convergent validity.
The study's findings indicate that Brand Image (AVE = 0.587), Brand Loyalty (AVE = 0.679), and Green Knowledge (AVE = 0.572) all demonstrate adequate convergent validity, effectively capturing the variance of their respective measurement items In contrast, Green Marketing (AVE = 0.510) shows marginally acceptable validity, suggesting that although it meets the minimum threshold, further refinement in item selection or measurement methods could enhance its construct validity.
The measurement model demonstrates strong reliability and validity, establishing a solid foundation for subsequent structural equation modeling (SEM) analysis High reliability scores confirm internal consistency of the constructs, ensuring statistically sound relationships within the structural model Additionally, satisfactory AVE scores indicate that the constructs are well-defined conceptually, reinforcing the study’s theoretical framework However, it is worth noting that the AVE for Green Marketing is slightly lower, suggesting possible areas for further refinement.
General Motors recommends a thorough review of its indicators, including rewording ambiguous items, refining measurement scales, and reassessing the theoretical foundations of the construct to enhance its explanatory power Ensuring that the constructs are both reliable and valid strengthens the credibility of the research findings This rigorous validation process confirms the integrity of the relationships examined between Brand Image and Brand Loyalty, ultimately supporting more accurate and meaningful insights.
Green knowledge and green marketing play a crucial role in shaping consumer perceptions and purchasing behaviors in the green cosmetics industry Understanding these factors through a well-developed measurement model enables accurate hypothesis testing and offers valuable strategic insights for effective green marketing initiatives These insights highlight the significance of integrating green knowledge and marketing strategies to enhance consumer trust and drive sustainable purchasing decisions.
Discriminant Validity (HTMT)
Discriminant validity is essential for confirming that each construct in a model is conceptually distinct and measures separate theoretical concepts According to Henseler et al (2016), an HTMT value below 0.85 (strict criterion) or 0.90 (more lenient threshold) indicates acceptable discriminant validity If the HTMT value exceeds 0.90, it suggests that the constructs are too closely related, potentially undermining the validity of the model.
The HTMT matrix results indicate potential discriminant validity issues among certain constructs, particularly between Brand Image (BI) and Brand Loyalty (BL), which have an HTMT value of 0.965—exceeding the recommended threshold and suggesting these constructs may not be sufficiently distinct due to perceived conceptual overlap This high correlation implies that consumers may see brand image and loyalty as nearly identical, challenging the conceptual differentiation between brand perception and consumer behavior Additionally, the HTMT value between Brand Image (BI) and Green Marketing (GM) is 0.946, also surpassing the 0.90 threshold, indicating that green marketing initiatives are perceived as closely tied to brand image This overlap suggests that consumers may not clearly differentiate between a brand’s overall image and its green marketing efforts, complicating efforts to isolate the individual effects of green marketing on brand perception.
The HTMT values for Green Knowledge (GK) with Brand Image (BI) at 0.766, GK with Brand Loyalty (BL) at 0.771, and GK with Green Marketing (GM) at 0.826 indicate acceptable discriminant validity, confirming that Green Knowledge is a distinct and independent construct within the model However, higher HTMT values between Brand Image and Brand Loyalty, as well as Brand Image and Green Marketing, suggest a need for further validation through cross-loading assessments and bootstrapping techniques Ensuring that each measurement item loads more strongly on its intended construct and examining confidence intervals can help confirm the discriminant validity and clarify the distinctiveness of these related variables.
To enhance the study’s validity, it is essential to revisit and refine the measurement items for Brand Image, Brand Loyalty, and Green Marketing, ensuring clear conceptual distinctions and avoiding overlap Incorporating green marketing initiatives into brand image indicators may require rephrasing or elimination of redundant items to maintain theoretical clarity Brand Loyalty should be measured through dimensions like repeat purchase behavior and emotional attachment, avoiding conflation with brand perception attributes Proper discriminant validity is critical to prevent multicollinearity issues that could distort path coefficients and compromise the study’s results Strengthening these measurement strategies will improve the structural model’s robustness, enabling more accurate insights into how green marketing strategies impact brand image and customer loyalty within the cosmetics industry, and highlighting the role of sustainability in shaping consumer perceptions and purchasing decisions.
Common Method Bias (CMB)
Table 11: Variance Inflation Factor (VIF)
Collinearity arises when predictor variables in a regression model are highly correlated, causing redundancy and instability in estimated coefficients To detect multicollinearity, the Variance Inflation Factor (VIF) is commonly used, with a threshold of 5.0 indicating severe multicollinearity However, to ensure more reliable results and reduce potential issues, it is recommended that VIF values ideally remain below 3.0, as suggested by Hair et al (2017).
The VIF analysis indicates that all indicators have values below the critical threshold of 3.0, with the highest being 2.269 for BI3 (Brand Image 3), demonstrating that multicollinearity is not a significant concern in the measurement model Most VIF values range from 1.4 to 1.8, which are considered optimal, highlighting that each indicator provides unique variance and effectively contributes to its respective construct.
The Brand Image (BI) indicators have VIF values ranging from 1.551 to 2.269, with BI3 showing the highest VIF, indicating it shares more variance with other BI indicators but without exceeding problematic levels Brand Loyalty (BL) items range from 1.474 to 1.656, confirming a well-structured construct with minimal redundancy The Green Knowledge (GK) construct exhibits VIF values between 1.475 and 1.778, demonstrating a strong yet non-redundant relationship among its indicators Similarly, Green Marketing (GM) indicators maintain VIF values between 1.396 and 1.646, supporting the absence of collinearity issues within this construct.
The findings have important implications for the structural equation modeling process by emphasizing the need to address multicollinearity issues Low VIF values indicate that multicollinearity is minimal, which strengthens the credibility of the model by preventing distortion of path coefficients and inflation of standard errors Since all VIF values are within acceptable limits, the indicators uniquely contribute to their respective latent variables, allowing for more confident interpretation of the structural relationships To further validate these results, future studies could explore additional diagnostics such as tolerance levels, the inverse of VIF, or condition index assessments Overall, the current measurement model exhibits strong statistical validity, confirming its appropriateness for hypothesis testing and subsequent structural analyses.
Structural Model Assessment: Hypotheses Testing
This study utilized Structural Equation Modeling (SEM) with SmartPLS 4 to analyze complex relationships among green knowledge (GK), green marketing (GM), brand image (BI), and brand loyalty (BL) within the Vietnamese cosmetics industry The inner model assessment identified the strength, direction, and significance of the predictive relationships, demonstrating that green knowledge influences green marketing, which then shapes brand image and ultimately enhances brand loyalty.
This study employed the bootstrapping procedure in SmartPLS 4 with 5,000 subsamples to accurately assess the path coefficients, T-statistics, and p-values, ensuring reliable evaluation of relationships between constructs (Henseler et al., 2016) A hypothesis was considered supported if the p-value was below 0.05, indicating statistical significance at the 5% confidence level, and if the T-statistic exceeded 1.645 in a one-tailed test, confirming path significance at 95% confidence (Hair et al., 2019) The results of the hypothesis testing are summarized in the accompanying table.
H1 GK -> GM 0.670 0.675 0.056 11.973 0.000 Supported H2 GM -> BI 0.773 0.775 0.035 22.320 0.000 Supported H3 BI -> BL 0.560 0.560 0.079 7.062 0.000 Supported
Table 12: Summary of Hypothesis Testing
Green knowledge has a significant and strong impact on green marketing, with a path coefficient of 0.670, a T-statistic of 11.973, and a p-value of 0.000, indicating high statistical significance Consumers with greater environmental awareness are more likely to demand and support brands that engage in authentic green marketing practices, such as eco-friendly packaging, ethical sourcing, and transparent sustainability initiatives This aligns with existing research showing that informed consumers expect brands to demonstrate genuine commitment to sustainability, prompting companies to adopt more credible green marketing strategies to build trust and attract eco-conscious audiences.
The analysis of hypothesis 2 confirms a strong, statistically significant link between green marketing and brand image, with a path coefficient of 0.773, T-statistic of 22.320, and a p-value of 0.000 Effective green marketing strategies, such as promoting biodegradable packaging, reducing carbon emissions, and practicing cruelty-free methods, significantly boost consumer perceptions of a brand’s environmental responsibility This enhanced brand image fosters greater consumer trust and perceived ethicality, strengthening the brand’s market position and competitive edge in the cosmetics industry where sustainability and ethics influence purchasing decisions.
Research indicates a strong positive correlation between brand image and brand loyalty, with a path coefficient of 0.560, T-statistic of 7.062, and p-value of 0.000, demonstrating that a compelling brand image significantly boosts consumer commitment When consumers perceive a brand as environmentally responsible, they tend to develop trust, emotional attachment, and long-term engagement—especially in the cosmetics industry, where ethical values and brand authenticity heavily influence purchasing decisions A positive brand image not only drives repeat purchases but also encourages word-of-mouth recommendations, thereby strengthening overall brand loyalty and consumer retention.
Green marketing has a direct positive impact on brand loyalty, evidenced by a path coefficient of 0.272, a T-statistic of 3.177, and a p-value of 0.001, indicating statistical significance However, its influence on brand loyalty is weaker compared to its indirect effect through enhancing brand image This highlights that sustainability-focused marketing efforts are more effective in fostering consumer loyalty when they strengthen the perception of a credible and authentic brand image Ultimately, consumers tend to remain loyal not solely because of green marketing messages but because they perceive the brand as genuinely committed to sustainability, emphasizing the mediating role of brand image in this relationship.
The study confirms that green marketing plays a crucial role in shaping consumer perceptions and enhancing brand loyalty Green knowledge acts as a vital driver, encouraging brands to implement sustainability initiatives that improve brand image and foster loyalty While green marketing directly impacts brand loyalty, its effectiveness is amplified when it strengthens the brand's image, emphasizing the importance of maintaining credibility and authenticity in sustainability efforts These findings highlight the significance of integrating authentic green practices into marketing strategies to build consumer trust and long-term loyalty.
Coefficient of Determination (R² Value)
The R-square (R²) values, as shown in Table 13, measure the explanatory power of the structural model by indicating how much variance in Green Marketing (GM), Brand Image (BI), and Brand Loyalty (BL) is explained by their respective predictors The model demonstrates that green knowledge influences green marketing, which then shapes brand image and ultimately fosters brand loyalty among young Vietnamese consumers in the cosmetics industry According to Hair et al (2017), R² values of 0.75, 0.50, and 0.25 are considered substantial, moderate, and weak in PLS-SEM, serving as benchmarks for assessing the model’s explanatory capacity.
Green Knowledge (GK) explains approximately 44.9% of the variance in Green Marketing (GM), indicating a moderate but not strong influence, as reflected by an R² value of 0.449 This suggests that while consumer green knowledge significantly impacts perceptions of eco-friendly initiatives like sustainable packaging and transparent environmental messaging, other factors such as marketing strategies and trust in green claims also play important roles The adjusted R² of 0.447 confirms the stability of this relationship, accounting for the study’s predictors and sample size (Nguyen et al., 2018).
Green Marketing (GM) significantly influences Brand Image (BI), with an R² value of 0.597 indicating that approximately 59.7% of the variance in BI is explained by GM This positions the explanatory power between moderate (0.50) and substantial (0.75), demonstrating that green marketing has a strong impact on shaping consumers’ perceptions of a brand’s prestige and reputation.
The R² value of 0.624 indicates that 62.4% of the variance in Brand Loyalty (BL) is explained by its key predictors, Brand Image (BI) and the direct effect of Green Marketing (GM), demonstrating substantial explanatory power An adjusted R² of 0.620 reinforces the model’s robustness, highlighting its effectiveness in capturing the main drivers of Brand Loyalty Notably, the mediating role of Brand Image fosters consumer trust, satisfaction, and emotional attachment, which are essential for building strong brand loyalty (Román-Augusto et al., 2022).
The R² values indicate that the structural model effectively explains Brand Image and Brand Loyalty within the Vietnamese cosmetics market, demonstrating strong predictive power Green marketing, while showing a reasonable level of explanation, has a comparatively lower R², suggesting that additional factors like consumer trust in green claims and social media influence should be incorporated in future research These insights validate the model's effectiveness in capturing the key relationships among the constructs and highlight potential areas for enhancing understanding of green marketing’s impact.
Effect Size (f² value)
F-square (f²) values are crucial for measuring the effect size of each predictor variable within a structural model, offering insights into the extent to which an independent variable explains a dependent variable According to Cohen (1988), f² values of 0.02, 0.15, and 0.35 indicate small, moderate, and large effects, respectively, helping researchers assess the practical significance of their predictors Understanding these effect sizes enhances the interpretation of model results and supports more accurate data-driven decision-making.
Green Marketing (GM) has a significant impact on Brand Image (BI), demonstrated by an f² value of 1.483, which indicates a strong and substantial influence of eco-friendly marketing strategies on shaping consumer perceptions of a brand This underscores the crucial role that green marketing initiatives play in enhancing and influencing a brand’s overall image in the eyes of consumers.
Brand Image (BI) has a moderate impact on Brand Loyalty (BL), with an f² value of 0.336, indicating that a strong brand image significantly influences customer loyalty However, since the f² value is moderate, other factors also play a vital role in shaping brand loyalty In contrast, Green Knowledge (GK) exerts a substantial effect on Green Marketing (GM), with an f² value of 0.816, emphasizing that consumers' environmental awareness greatly impacts their perception of green marketing efforts This underscores the importance of educating consumers about green initiatives to boost the effectiveness of green marketing strategies.
Green Marketing (GM) has a modest impact on Brand Loyalty (BL), with an f² value of 0.079, indicating that its influence is relatively weak compared to factors like brand image While green marketing contributes to fostering customer loyalty, it alone may not be enough to establish strong brand commitment Therefore, businesses should complement green marketing efforts with other brand-building strategies to enhance customer loyalty effectively.
Green Marketing has the most significant impact on Brand Image, as confirmed by the f² values, emphasizing its crucial role in shaping consumer perceptions Additionally, Green Knowledge significantly enhances the effectiveness of Green Marketing, highlighting the importance of consumer awareness While Brand Image plays a key role in driving Brand Loyalty, Green Marketing's direct effect on loyalty is limited These findings underscore the importance of implementing effective green marketing strategies and increasing consumer green knowledge to strengthen brand perception and loyalty.