The Effect of Green Practices on Customer Loyalty in Tea Industry: Evidence from Sri Lankan Tea Market

Abstract

This study investigates the effect of green practices on customer loyalty within the Sri Lankan tea industry. Specifically, the research examines the effect of three major environmental practices that are Biodiversity Conservation, Rainforest Reforestation, and Eco-Systems Conservation on customer loyalty within tea industry. Guided by a positivist philosophy and employing a deductive approach, the study utilizes a mono-method quantitative strategy. Data were collected through a structured questionnaire from 108 randomly selected consumers and analyzed using Cronbach’s alpha for reliability, Pearson correlation, and Chi-square tests for hypothesis testing. The results revealed high reliability across all constructs (Cronbach’s alpha > 0.8) and significant positive correlations between green practices and customer loyalty. Pearson correlation indicated strong relationships particularly for Biodiversity Conservation and Eco-Systems Conservation, while Rainforest Reforestation showed a moderate positive relationship. Chi-square analysis further confirmed that all three green practices had a statistically significant effect on customer loyalty. These findings underscore the strategic value of adopting sustainable practices in fostering customer loyalty in environmentally sensitive markets like tea. The study concludes that green initiatives are not only ecologically beneficial but also vital for brand differentiation and consumer retention. Recommendations are made for tea companies to deepen their commitment to sustainability, while future studies are encouraged to explore additional green practices.