Mandalawatta S.D. and Fazeela Ahsan
The environment plays a significant role in the lives of humanity. With rapid increase in consumers getting environmental conscious, numerous organizations worldwide have changed their whole business activities to be eco-productive going past ecological consistence and to increase the competitive edge over its rivals. „Green�?? has been utilized to portray a great deal of brand activation methodologies namely energy efficient, organic and ecologically inviting. However, understanding the consumer behavior towards the green concept is one of the least considered areas of research in Asian countries thus far. Hence, this study is carried out with the purpose of identifying how the green branding influences the customers�?? brand preference in purchasing eco-friendly fast moving consumer goods (FMCGs). Four (04) main variables related to green branding were considered for the study, namely, Green brand image, trust, satisfaction and awareness, while a sample of 385 FMCG consumers from the Colombo District was surveyed for the purpose of data collection. Descriptive statistics, hypotheses testing as well as hierarchical multiple regression were used in combination with various statistical tools, such as correlations, independent sample t-test and one way ANOVA, in order to analyze and interpret the results. The study has empirically proven that there are positive relationships between brand preference and each independent variable, while customer perceived value significantly moderating the relationship between green branding and consumers�?? brand preference. Moreover, demographic factors, such as gender, age and income have both significant and insignificant relationships with the influencing variables. In this regard, creating more awareness, introducing green improvements, developing emotional links with consumers, and focusing on a layered strategy in branding are some of the recommendations made in the research. Based on the results, the study provides important insights to the FMCG players, thereby contributing to improve and encourage green concept in Sri Lanka. Further, customers who are attracted to buy green products are also benefited by the derived results, through which they are able to make more informed purchasing decisions. Equally, FMCG Companies can draw on the findings of the study in formulating more effective green branding, marketing and development strategies, and thereby enhance their performance in future.