Customer Perceived Ethicality as a Mediating Mechanism Linking Green Packaging Green Advertising and Eco Labels to Customer Legitimacy in Artificial Food Manufacturing in the Philippines

This research investigates the effects of green initiative practices such as green packaging, green advertising, and eco-labels on customer legitimacy in the artificial food manufacturing sector where customer perceived ethicality is the intervening variable. Data were gathered from 334 artificial food manufacturers’ customers and a 458 sample from the Philippines and were subjected to quantitative analysis via SEM-PLS. The results showed customer perceived ethicality to considerably mediate all direct effects which means that ethical perceptions determine how customers perceive a brand and its associated goodwill. Firms that practice sustainable initiatives are more apt to increase trust, credibility, and advocacy from customers who appreciate eco-initiatives. The research contributes to the practical side of the business by directing firms to focus on sustainable practices in green packaging, green advertising, and eco-labeling in order to provide clear and robust evidence of eco-commitment. By doing this, firms stand to gain improved customer business relationships and have the potential to reshape market dynamics along with regulation to promote a more sustainable environment. The research also contributes to the theory by providing empirical evidence on the unexplored purpose of green marketing tools in customer legitimacy. Based on the signaling theory, eco-labeling, green packaging, and advertising are all examples of practices that reflect corporate values and morality. These practices are seen by consumers as signs of worth and trust. The research, in addition, indicates the perception of ethics is key to translating green efforts into customer legitimacy.