PREDICTING GREEN PURCHASE INTENTION OF GENERATION Y: AN EMPIRICAL STUDY IN INDONESIA

Abstract

Environmental awareness is growing up as the environmental issues nowadays are significant to human lives. Some manufacturers started to entering green product market and targeting green consumers. Many studies have been conducted to examine the influence of several factors such as environmental knowledge, environmental concern, attitudes, and price on green purchase intention. However, just few studies stated that price also influenced the decision-making on buying green products specifically in the context of Indonesian. Whereas price become one of the most important factors considered by consumers.  This study investigated the relationship of environmental knowledge, environmental concern, subjective norms, price fairness, attitudes, and green purchase intention. The research model was tested by using self-administrated questionnaires of 200 students in private university. Before the questionnaires were distributed, the pilot study was conducted to assess the reliability and validity of the instruments. The hypotheses were measured by Structural Equation Model (SEM). The result showed that there were three hypotheses which were supported and two unsupported hypotheses. This research gives recommendations for future research.

Keywords: environmental knowledge, green products, environmental concern, subjective norms, price fairness, attitudes, green purchase intention