Modeling Consumer Decisions for Purchasing Green Products: Insights into Environmentally Conscious Companies
Journal Title: Journal of Green Economy and Low-Carbon Development - Year 2024, Vol 3, Issue 2
Abstract
Environmental challenges are increasingly addressed through movements that promote environmental care and awareness. Consumers with a high degree of environmental consciousness are more inclined to purchase environmentally friendly or “green" products, perceiving these purchases as a contribution to environmental sustainability. This research aims to analyze the relationship between purchasing decisions for green products and the factors that influence them, further ensuring the stability of findings in environmentally friendly marketing in the context of company development to assess long-term stability. The research utilizes two methodologies: Structural Equation Modeling (SEM) with Partial Least Squares (PLS) is employed to identify and quantify the relationships between green product purchasing decisions and key influencing factors, including green product knowledge, consumer perception, and perceived price. Meanwhile, dynamic system simulation is used to measure the stability and evolution of green product purchasing decisions over time. The findings reveal that the relationships between these influencing variables are statistically significant and demonstrate a stable trend. The dynamic simulation indicates that the expected values for green product purchasing decisions are consistently achieved annually, reaching a stable equilibrium within a decade. These outcomes provide valuable insights for designing marketing strategies that enhance consumer awareness of green products and assist in decision-making processes, thereby promoting sustainable consumer behavior. The practical implications of this research are twofold: it offers strategic guidance for companies aiming to market green products effectively and provides consumers with a framework to make informed purchasing decisions that align with environmental sustainability goals.
Authors and Affiliations
Fauziyah Nur Jamal, Ahmad Rizal Solihudin, Bagus Gumelar, Mustika Rahmi, Filda Rahmiati, Eshin Selina
Keywords
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- EP ID EP752468
- DOI https://doi.org/10.56578/jgelcd030205
- Views 10
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