Green Service Innovation and Premium Acceptance: The Mediating Role of Perceived Quality in Emerging Service Economy

Abstract

This study investigates how green service innovation dimensions influence customer perceptions and behavioral intentions in Vietnam's rapidly evolving sustainable service economy. Drawing on service quality theory and the value-attitude-behavior framework, we examine the relationships between three dimensions of green service innovation (process, service, and communication innovation), perceived green service quality, and green premium acceptance. Using data from 512 Vietnamese customers across hospitality, banking, and retail sectors, we employ structural equation modeling to test seven hypotheses. Our findings reveal that all three innovation dimensions positively influence perceived green service quality, with communication innovation demonstrating the strongest effect. Perceived green service quality significantly mediates the relationships between green service innovations and green premium acceptance. The study contributes to service marketing literature by disaggregating green service innovation into distinct dimensions and demonstrating their differential effects in an emerging market context. Practical implications suggest that Vietnamese service providers should prioritize transparent communication while integrating process and service innovations to maximize customer value perceptions and premium acceptance. These findings offer strategic guidance for service managers navigating sustainability transitions in emerging Asian markets.