Graduate School of Business

Permanent URI for this collectionhttps://hdl.handle.net/10679/9880

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    PhD DissertationPublicationMetadata only
    Quantifying the spillover of green products on consumer attitudes and umbrella brand sales
    (2017-06) Özcan, Başar; Pauwels, Koen Hendrik; Pauwels, Koen Hendrik; Özsomer, A.; Soyer, Emre; Harmancıoğlu, N.; Gözübüyük, R.; Department of Business; Özcan, Başar
    Despite growing consumer attention to the environment, it is still unclear how and how much companies benefit from their large investments in 'green' products. This paper quantifies the positive spillover of sustainable green products on the umbrella brand's other ('brown') product sales. The conceptual framework builds on halo effects, signalling and umbrella branding to develop hypotheses on attitude spillover and its conversion to higher brown product sales. The author tests this framework with data on Toyota Prius' first eight years of marketing mix, attitude metrics and sales. The vector autoregressive model shows significant improvement from incorporating green product attitude metrics in the sales forecasts for Toyota's other products. Not all brown products benefit from gains in Prius attitudes, only the less expensive brands do so. These results suggest interesting trade-offs between substitution effects and positive spillover effects of green products in an umbrella brand's portfolio.