When Do Environmental and Ethical Practices Pay Off? The Mediating Roles of Perceived CSR and Green Brand Image and the Moderating Role of Ethical Green Orientation

ABSTRACT In digital marketplaces characterised by information asymmetry and growing scepticism towards environmental claims, understanding how green digital marketing strategies translate into economic value remains an important research challenge. Despite growing interest of sustainable branding on digital platforms, scarce research focuses on how green digital marketing strategy influences customer's willingness to pay price premium for sustainable products. Drawing on signalling theory and attribution theory, this study examines how three dimensions of green digital marketing strategy, green and ethical offerings, transparency and disclosure, and social and environmental impact, shape consumers' willingness to pay a price premium through brand's perceived corporate social responsibility (CSR) and green brand image. Using a three‐wave time‐lagged survey design, data were collected from 309 consumers in China. The findings indicate that green and ethical offerings, transparency and disclosure, and social and environmental impact positively influence brand's perceived CSR and green brand image, which in turn significantly enhance willingness to pay a price premium. Mediation analyses demonstrate that these green digital marketing practices influence price acceptance indirectly through cognitive evaluation (perceived CSR) and symbolic internalisation (green brand image). Furthermore, ethical green orientation strengthens the effects of perceived CSR and green brand image on willingness to pay, underscoring the role of value congruence in green pricing decisions. By integrating signalling and attribution perspectives, this study advances understanding of how digitally communicated environmental and ethical practices are interpreted, legitimised, and monetised in emerging digital markets. This study brings novel perspective by integrating signalling theory and attribution theory that explains how green digital marketing results into customers' willingness to pay a premium price through interpretive and symbolic mechanism.