The Use of Carbon-Neutral Branding and Customer Loyalty in Nigeria: A Study of Green-Watt Technology

This study investigates the relationship between carbon-neutral branding and customer loyalty in Nigeria, using Green-Watt Technology as a case study. The study examines how the perception of carbon-neutral branding influences customer trust and loyalty, and whether trust mediates this relationship. Guided by signaling and relationship marketing theories, a simulated survey dataset (N = 300) was analyzed using regression and mediation analysis to illustrate expected empirical patterns. The results revealed that perceived carbon-neutral branding significantly predicts brand trust (β = 0.621, p < 0.001) and customer loyalty (β = 0.212, p = 0.001), while trust partially mediates the relationship (Sobel z = 6.426, p < 0.001). The findings underscore that trust serves as a crucial mechanism through which carbon-neutral branding enhances loyalty. The study recommends increased transparency, third-party certification, and credible communication strategies to strengthen customer trust in sustainability claims within Nigeria’s renewable energy sector.