Green Marketing Practices, Consumer Buying Behaviour, and Corporate Financial Performance in India: A Moderated Mediation Analysis

The growing importance of environmental sustainability has revolutionised the operation of various businesses and consumer behaviour and the decision making process of purchasing. The study investigates the impact which green marketing practices introduced by Indian companies have on corporate financial performance and the mediating effect of consumer behaviour in green marketing practices on corporate financial performance and purchasing behaviour of Indians. Additionally, the model introduces the possibility of environmental consciousness as a moderator, where environmental consciousness plays a role of influence to examine whether, how and on how consumer degree of ecological awareness affects the indirect pipeline between the path of green marketing to firm-level financial performance. Utilising both primary survey data from 320 respondents across large cities in India and secondary data collected from published corporate sustainability reports, industry databases, as well peer-reviewed academic literature, the study uses Structural Equation Modelling (SEM) framework and PROCESS macro (Model 14) for moderated mediation analysis. Thus, the impact of green marketing practices on consumer buying behaviour is substantial, which is then linked to better corporate financial performance. The indirect effect of green marketing on financial performance through consumer behaviour is greater when consumers demonstrate increased environmental consciousness. The findings highlight awareness-building as a key strategic lever for companies interested in scaling the effectiveness of green investments through tangible business outcomes. This study adds to the growing sustainability marketing literature, especially in the context of India, an emerging market where green consumerism is still maturing. These are discussed in terms of what is to be implemented for marketers, corporate strategists and policymakers involved with sustainable economic development. Green Marketing, Consumer Buying Behaviour, Corporate Financial Performance, Moderated Mediation, Environmental Awareness, India, Sustainability, SEM.

Green Marketing Practices, Corporate Financial Performance, Sustainability, Mediation Effect, Moderation Effect.

1. Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179–211. [Google Scholar] [Crossref]

2. Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. [Google Scholar] [Crossref]

3. Carrington, M. J., Neville, B. A., & Whitwell, G. J. (2010). Why ethical consumers don't walk their talk: Towards a framework for understanding the gap between the ethical purchase intentions and actual buying behaviour of ethically minded consumers. Journal of Business Ethics, 97(1), 139–158. [Google Scholar] [Crossref]

4. Chan, R. Y. K. (2001). Determinants of Chinese consumers' green purchase behavior. Psychology & Marketing, 18(4), 389–413. [Google Scholar] [Crossref]

5. Chen, Y. S. (2008). The driver of green innovation and green image: Green core competence. Journal of Business Ethics, 81(3), 531–543. [Google Scholar] [Crossref]

6. Climate Bonds Initiative. (2024). India Green Finance: State of the Market 2023. London: CBI. [Google Scholar] [Crossref]

7. CRISIL. (2023). India ESG Yearbook 2023: Trends, Ratings and Corporate Performance. Mumbai: CRISIL Limited. [Google Scholar] [Crossref]

8. Delmas, M. A., & Burbano, V. C. (2011). The drivers of greenwashing. California Management Review, 54(1), 64–87. [Google Scholar] [Crossref]

9. Dunlap, R. E., & Jones, R. E. (2002). Environmental concern: Conceptual and measurement issues. In R. E. Dunlap & W. Michelson (Eds.), Handbook of Environmental Sociology (pp. 482–524). Westport, CT: Greenwood Press. [Google Scholar] [Crossref]

10. Eccles, R. G., Ioannou, I., & Serafeim, G. (2014). The impact of corporate sustainability on organizational processes and performance. Management Science, 60(11), 2835–2857. [Google Scholar] [Crossref]

11. FICCI. (2023). Sustainable Business Report: Green Marketing and Consumer Trends in India. New Delhi: Federation of Indian Chambers of Commerce and Industry. [Google Scholar] [Crossref]

12. Fishbein, M., & Ajzen, I. (1975). Belief, Attitude, Intention and Behavior: An Introduction to Theory and Research. Reading, MA: Addison-Wesley. [Google Scholar] [Crossref]

13. Follows, S. B., & Jobber, D. (2000). Environmentally responsible purchase behaviour: A test of a consumer model. European Journal of Marketing, 34(5/6), 723–746. [Google Scholar] [Crossref]

14. Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50. [Google Scholar] [Crossref]

15. Friede, G., Busch, T., & Bassen, A. (2015). ESG and financial performance: Aggregated evidence from more than 2000 empirical studies. Journal of Sustainable Finance & Investment, 5(4), 210–233. [Google Scholar] [Crossref]

16. Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate Data Analysis (7th ed.). Upper Saddle River, NJ: Pearson. [Google Scholar] [Crossref]

17. Hayes, A. F. (2018). Introduction to Mediation, Moderation and Conditional Process Analysis: A Regression-Based Approach (2nd ed.). New York: Guilford Press. [Google Scholar] [Crossref]

18. Jog, D., & Singhal, D. (2020). Green marketing strategies in Indian FMCG sector: A review and research agenda. Asia-Pacific Journal of Management Research and Innovation, 16(1), 7–17. [Google Scholar] [Crossref]

19. Joshi, Y., & Rahman, Z. (2015). Factors affecting green purchase behaviour and future research directions. International Strategic Management Review, 3(1–2), 128–143. [Google Scholar] [Crossref]

20. Kumar, P., & Ghodeswar, B. M. (2015). Factors affecting consumers' green product purchase decisions. Marketing Intelligence & Planning, 33(3), 330–347. [Google Scholar] [Crossref]

21. Mishra, P., & Sharma, P. (2014). Green marketing in India: Emerging opportunities and challenges. Journal of Engineering, Science and Management Education, 3, 9–14. [Google Scholar] [Crossref]

• A Case Study on the Development and Simulation of a High-Efficiency Flyback Converter for Portable Solar LED Lighting
• Greening the Campus: Stakeholders’ Insights on Sustainability Practices in a Chinese Higher Education Institution
• Malaysia’s Renewable Energy and CO₂ Emissions: ARDL–ECM Evidence with Policy and Managerial Implications
• Waqf within Business Model Framework: A Review and Research Agenda
• Sustainability-Driven Green City Framework and its Impact on Malaysia’s Tourism Industry Development