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Influencing the Positive Impact of Consumer Characteristics on Green Purchasing Decisions: Moderating Role of Peer Influence in Indonesia

In: Proceedings of the 9th Global Conference on Business, Management and Entrepreneurship (GCBME 2024)

Author

Listed:
  • Imran Ahmad Shakir

    (Telkom University)

  • Indrawati Indrawati

    (Telkom University)

Abstract

This study investigated consumers’ purchase decisions regarding green products in a fast-growing developing country, Indonesia. Drawing on the Theory of Planned Behavior (TPB) as the primary theoretical framework, the research extends the model by incorporating additional constructs such as environmental concerns, green perceived quality, green future estimation, and peer influence as a moderating variable. A quantitative technique was employed to collect data from a sample of (n = 316) young educated Indonesian consumers located on Java, the most populated island of Indonesia. The study utilized Smart partial least squares 4.0 (PLS) to analyze measurement and structural models. The empirical findings revealed that consumers’ environmental concern (EC), green perceived quality (GPQ), green willingness to purchase (GWP), green awareness of price (GAP), and green future estimation (GFE) positively influenced their green purchasing decisions (GPD). However, green perceived benefits (GPB) negatively influenced green purchasing decisions of green products. The study provides valuable insights for companies, marketers, and policymakers aiming to promote green products and green marketing initiatives. Suggestions include the development of green advertising, green branding, and eco-labels to inform consumers about eco-friendly products better.

Suggested Citation

  • Imran Ahmad Shakir & Indrawati Indrawati, 2025. "Influencing the Positive Impact of Consumer Characteristics on Green Purchasing Decisions: Moderating Role of Peer Influence in Indonesia," Advances in Economics, Business and Management Research, in: Ratih Hurriyati & Sulastri Sulastri & Lisnawati Lisnawati & Lili Adi Wibowo (ed.), Proceedings of the 9th Global Conference on Business, Management and Entrepreneurship (GCBME 2024), pages 678-685, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-817-2_79
    DOI: 10.2991/978-94-6463-817-2_79
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