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Giving green a second thought: Modeling the value retention of green products in the secondary market

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  • Majid, Kashef Abdul
  • Russell, Cristel Antonia

Abstract

Demand for green products continues to grow. This research examines green products’ retention of value and whether new green brands differ from green brand extensions in their ability to retain value amidst technological innovations. Modeling of data from the used car market between 2004 and 2011 shows that hybrid (i.e., green) vehicles lose value faster than their non-hybrid counterparts. However, pure green brands (such as the Prius), whose ability to express greenness is more salient, lose value at a slower rate than green brand extensions. Compared with brand extensions, pure green brands are also less vulnerable to the threat of obsolescence from technological innovations (introduction of fully electric vehicles). Implications for the management and marketing of green product offerings to extract maximum value for firms and consumers are discussed and suggestions for future research are proposed.

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  • Majid, Kashef Abdul & Russell, Cristel Antonia, 2015. "Giving green a second thought: Modeling the value retention of green products in the secondary market," Journal of Business Research, Elsevier, vol. 68(5), pages 994-1002.
    • Handle: RePEc:eee:jbrese:v:68:y:2015:i:5:p:994-1002
    DOI: 10.1016/j.jbusres.2014.10.001
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    2. Xu, Aiting & Zhu, Yuhan & Wang, Wenpu, 2023. "Micro green technology innovation effects of green finance pilot policy—From the perspectives of action points and green value," Journal of Business Research, Elsevier, vol. 159(C).
    3. Turrentine, Thomas & Tal, Gil & Rapson, David, 2018. "The Dynamics of Plug-in Electric Vehicles in the Secondary Market and Their Implications for Vehicle Demand, Durability, and Emissions," Institute of Transportation Studies, Working Paper Series qt8wj5b0hn, Institute of Transportation Studies, UC Davis.
    4. Majid, Kashef Abdul & Russell, Cristel Antonia, 2019. "Value dynamics in the secondary market: How pricing and product lines in the primary market affect value retention," Journal of Business Research, Elsevier, vol. 103(C), pages 89-99.
    5. Secinaro, Silvana & Calandra, Davide & Lanzalonga, Federico & Ferraris, Alberto, 2022. "Electric vehicles’ consumer behaviours: Mapping the field and providing a research agenda," Journal of Business Research, Elsevier, vol. 150(C), pages 399-416.
    6. Tal, Gil & Nicholas, Michael A. & Turrentine, Thomas S., 2017. "First Look at the Plug-in Vehicle Secondary Market," Institute of Transportation Studies, Working Paper Series qt22p191zs, Institute of Transportation Studies, UC Davis.
    7. Rodney Duffett & Tudor Edu & Norbert Haydam & Iliuta-Costel Negricea & Rodica Zaharia, 2018. "A Multi-Dimensional Approach of Green Marketing Competitive Advantage: A Perspective of Small Medium and Micro Enterprises from Western Cape, South Africa," Sustainability, MDPI, vol. 10(10), pages 1-27, October.
    8. Ganesh Pillai, Rajani & Bindroo, Vishal, 2020. "Supplier cluster characteristics and innovation outcomes," Journal of Business Research, Elsevier, vol. 112(C), pages 576-583.
    9. Yu, Ellen Pei-yi & Luu, Bac Van & Chen, Catherine Huirong, 2020. "Greenwashing in environmental, social and governance disclosures," Research in International Business and Finance, Elsevier, vol. 52(C).

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