The role of industries’ environmental reputation and competitive intensity on sustainability marketing strategy: Customers’ environmental concern approach

Abstract

Purpose: This paper aims to highlight a model of industry drivers (industries’ environmental reputation and competitive intensity) that affect the sustainability marketing strategy segmentation, targeting and positioning based on customers’ environmental concern and explore the circumstances under which such a strategy affects performance. Design/methodology/approach: The authors examined 64 Iranian export companies, which adopted sustainability marketing strategies across seven different industries. Achieved data are analyzed using a structural equation model methodology. Findings: The results indicate that industries’ environmental reputation is positively related to the sustainability marketing strategies based on customers’ environmental concern and leads to superior financial and market performance. They also posit that competitive intensity has no significant effect on sustainability marketing strategies. Research limitations/implications: This study specifically examines the impact of industry drivers on sustainability marketing strategy and performance. Logically, there might be other factors affecting the sustainability or other value dimensions that are not addressed in this study. Practical implications: This paper provides some understanding of how organizations strength their sustainability marketing strategy, and they have to consider what factors to adopt such strategy. This paper also facilitates a better understanding of the customers’ needs and concern as a factor influencing sustainability marketing strategy adoption and implementation. Identifying the customer segmentation and market targeting based on the industry’s environmental can lead to the business will normally tailor the marketing mix (4Ps) with the needs and expectations of the target in mind. Originality/value: This paper strengthens the effect of environmental concern of customer to understand what influences the success of the sustainability marketing adoption and implementation by investigating the most influential factors such as industries’ environmental reputation and competitive intensity.