The Effect Green Marketing Mix on Corporate Image as Well as
Implication for Purchase Intention of Food and Beverages Companies In Indonesia
Universitas Persada Indonesia Y.A.I, Indonesia.
Email: [email protected]
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ARTICLE INFO |
ABSTRACT |
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Date received : 01 january
2021 Revision date : 05 February 2021 Date received : 02 March 2021 |
This study aims to analyze and prove effect of the green
marketing-based marketing mix consisting of (green product, green price,
green distribution, green promotion) on corporate image and its implications
for the purchase intention of food and beverage companies in Indonesia,
partially or jointly and the effect of the green marketing-minded marketing
mix consisting of (green product, green price, green distribution, green
promotion) and corporate image on the purchase intention of food and beverage
companies in Indonesia, both partially or collectively. The research method
used in this research is descriptive and verification methods with a sample
of 205 respondents, and the data analysis method used is SEM (Structural
Equation Modeling) using the Lisrel Program. Based
on the research results, the following findings were found as green product,
green price, green distribution and green promotion both partially and
collectively have a positive and significant effect on corporate image with a
coefficient of determination (R2) of 88%. Likewise, green product, green
price, green distribution, green promotion and corporate image either
partially or collectively have a positive and significant effect on purchase
intention with a coefficient of determination (R2) of 98%. This research
finds and proves that to increase purchase intention it is necessary to
increase the marketing mix with a marketing perspective (green product, green
price, green distribution and green promotion) and corporate image in the
non-physical identity dimensions needs to be improved |
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Keywords: green product green price green distribution green promotion corporate image purchase intention |
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Coresponden Author: Email: [email protected] Article with open access under
license |
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INTRODUCTION
Environmental
preservation has received important attention and is starting to be realized by
the world community. Environmental damage results in environmental disasters,
not only health but even human survival. Environmental damage that has occurred
cannot be avoided, but if people around the world are determined not to carry
out activities and also not to use products that can damage the environment, it
is considered that it can reduce environmental damage. Such a situation
eventually arises what is called green consumerism
Green
consumerism is a continuation of the global consumerism movement that began
with consumer awareness of their rights to obtain products that are feasible,
safe, and environmentally friendly products.
Likewise,
consumers in Indonesia are starting to realize the importance of environmental
conservation. Indonesian consumers support the environmental conservation
movement by purchasing environmentally friendly products. Consumers who have
environmental awareness are often called green orientation, which is predicted
to increase in the future. Consumers who have a high awareness of the
environment will choose products that are environmentally friendly even though
the price is relatively more expensive. The increasing public awareness about
the importance of preserving the environment has made many producers and
companies start to switch to using materials that do not damage the environment
or other terms environmentally friendly materials.
With public
awareness about the environment, the company must be able to implement
environmental issues as one of its marketing strategies. The concept of product
marketing that uses ingredients that do not damage the environment is now known
as green marketing. When several companies use green marketing as the axis of
their successful marketing strategy, from then on, green marketing has begun to
become the main focus of business for various companies.
This
research was conducted in food and beverage companies, i.e. PT Nestle
Indonesia, PT Indofood CBP Sukses Makmur Tbk and PT Unilever Indonesia Tbk.
This food and beverage company has a variety of brands that are well known
among Indonesian consumers. The company is also implementing a green marketing
mix strategy to strengthen its corporate image and to attract consumer buying
interest. One of the efforts taken is to offer products that are
environmentally friendly and committed to participating in preserving the
environment.
Based on
the growth rate and number of companies in the food and beverage industry,
companies that want to grow and win the competition can use green marketing as
a marketing strategy to strengthen their corporate image and attract consumer
buying interest (purchase intention) of the products offered.
Consumer
purchase interest is a consumer behavior in which consumers have the desire to
buy or choose a product, based on experience in choosing, using and consuming
or even wanting a product (Kotler, Philip and Keller, 2012).
In this
study, consumers' purchase intention (purchase intention) is influenced by the
corporate image (company image) and the green marketing mix which consists of
green products, green prices, green promotions and green distribution.
Company
image is a reflection of the identity of an organization or company, in which a
company is able to have several different images in the eyes of the public (Kasali, 2009: 30). Company image is the image of ideas,
thoughts and impressions of the position and shows that the company image is
the perception of the company. The company image reflects the company's
performance which is formed in the memory of consumers.
Company
that has a good image in the eyes of consumers will influence consumer choices
in making purchases. At that time consumers will remember that the company has
a good reputation and quality so that consumers will make purchases for the
company's products. In this case, a good company image will have an effect on
consumer buying interest. It can be said that company image can influence
consumer purchase interest.
Likewise,
consumer buying interest is reflected in the increase in company sales, which
can be influenced by building a corporate image during the process of business
development.
The
corporate image in this study is influenced by the green marketing mix which
consists of green product, green price, green promotion, and green
distribution.
Green
products are products that are manufactured using non-toxic materials and
environmentally friendly process steps, and which are certified by a recognized
organization (Kumar & Ghodeswar, 2015).
Green price
is a price that refers to a certain price in company policies relating to
environmental considerations set by regulations and company instructions or
initiatives. However, green products often require a higher initial cost but in
the long run will be economical (Cullington & Zeng, 2011).
Green
promotion involves the configuration of promotional tools, such as advertising,
marketing materials, signs, white papers, websites, public relations, sales
promotion, direct marketing and on-site promotion, videos and presentations
keeping people, planet and profits in mind. (Shil, 2012).
Green
distribution is a very complicated operation. The customer must be assured of
the 'ecological nature' of the product. A green environment is a constantly
regulated environment and therefore a high level of compliance is essential
when distributing green products (Rashad Yazdanifard & Mercy, 2011).
The green marketing
mix strategy that is implemented properly by the company is expected to affect
the increase in corporate image and also influence consumer buying interest in
green products offered by the company.
Research on
the green marketing mix and consumer buying interest has been carried out by
many previous researchers with different results among researchers causing a
research gap. Gap research allows other researchers to do research again with a
similar theme, for that the authors are interested in re-examining the green
marketing mix, and consumer buying interest by adding corporate image as an
intervening variable.
Literature Research
Green Marketing
Green
Marketing is a process of marketing and producing goods or services that
prioritize environmental friendliness. Green Marketing should be done by all
companies in the world, because now our environment is getting worse due to
Global Warming.
Green
marketing is a concept, which includes all marketing activities developed to
stimulate and sustain consumers' eco-friendly attitudes and behaviors. Green
marketing is a concept, which includes all marketing activities that are
developed to stimulate and maintain consumer environmental friendly behavior
attitudes (Tuma, J. M., & Pratt, J. M. (1982). Clinical
child psychology practice and training: A survey. \ldots of Clinical Child
& Adolescent Psychology, 137(August 2012) et al., 2002). The term green
marketing became known in the late 1980s and early 1990s, but it turned out
that this had been discussed earlier. The American Marketing Associate (AMA) in
1975 held the first seminar on "Ecological Marketing" and produced a
book on green marketing entitled "Ecological Marketing" (RUDI HARYADI, 2009).
(Ottman et al., 2006) argues that
the dimensions of green marketing, by integrating the environment into all
aspects of marketing, new product development (green product) and communication
(green communication). The goals of green marketing are to improve the
relationship between industry and the environment, to monitor the impact of the
economy, and to respond to government regulations on the environment.
Polonsky (Wu & Chen, 2014) defines
green marketing as all activities designed by companies in order to meet human
needs by reducing adverse impacts on the environment.
Green Product
Products
are central to the eco-friendly marketing mix and the
most important part of a green marketing strategy. However, it must be considered
in the brain that green products are not limited to the last object but involve
all elements of the product, such as the materials used, the production
process, the product package and others. (Cullington & Zeng, 2011).
(Junaedi, 2015) states
that green products are products that are not harmful to humans and the
environment, are not wasteful of resources, do not produce excessive waste, and
do not involve cruelty to animals. Green products must consider environmental
aspects in the product life cycle so as to minimize negative impacts on nature.
This minimization effort is to encourage all parties to play a role in
technology development towards environmentally friendly products. In the
production sector, various ways can be done to produce an environmentally
friendly product, one of which is by using the concept of a sustainable green
product.
(Kumar & Ghodeswar, 2015) state that an
environmentally friendly product is a product that is manufactured using
environmentally friendly measures and non-toxic ingredients licensed by a
well-known company. Nugrahadi (2002: 219) argues,
green products are products that are environmentally friendly. A product that
is designed and processed in a way to reduce the effects that can pollute the
environment, both in production, distribution and consumption.
Green Price
(Kalama, 2007) states that price is
the cost paid for a product. This is an essential element of the marketing mix.
The majority of consumers will only be prepared to pay a premium if there is a
perception of the value of the additional product. According to (Hashem & Al-Rifai, 2011), green price refers
to a certain price in company policies relating to environmental considerations
set by company regulations and instructions or its initiatives.
Price of
environmentally friendly products must be reasonable for consumers who inspire
them to buy environmentally friendly products (R Yazdanifard & Mercy, 2011). Most consumers will
only be prepared to pay high if there is an opinion about the added value of
green products (Kalama, 2007). Price is an
important and important factor of green marketing integration. Green products
often have a higher price than traditional products. Most of them contain
higher primary output costs, but lower long-run costs. Most consumers are only
ready to pay higher prices when they get the added value of the product. Green
products must be kept in a balance between consumers who pay a fee and the
approval of the satisfaction of paying more for environmental safety (Saremi et al., 2014).
Green
Distribution/Place
Green place
is about managing logistics to reduce transportation emissions, so that it
basically aims to reduce the carbon footprint (Shil, 2012). With
regard to distribution gates associated with green products, which are suitable
for customers, in terms of facilitating their delivery, and for securing
cycling procedures carried out under environmental conditions and requirements (Hashem & Al-Rifai, 2011).
Delivery
method is a consolidated association between the company and the consumer. In
the environmental marketing delivery scheme referred to as a green place is a
dissemination gate that facilitates distribution and to safeguard the process
carried out in conservation conditions and needs (Hashem & Al-Rifai, 2011).
Place
represents the location where a product can be purchased. This can mean physical
or virtual stores. Product distribution must be from satisfactory channels, and
clearly and properly placed in an environmentally safe place where there is no
contamination whatsoever. In order for green businesses to be established and
to be priced competitively, companies must ensure that their distributors care
about the environment and establish that they set a green distribution strategy
(Kalama, 2007).
Green
distribution is a very complicated operation. The customer must be assured of
the 'ecological nature' of the product. A green environment is a constantly
regulated environment and therefore a high level of compliance is essential
when distributing green products (Rashad Yazdanifard & Mercy, 2011).
Green Promotion
Green
promotion involves the configuration of promotional tools, such as advertising,
marketing materials, signs, white papers, websites, public relations, sales
promotion, direct marketing and on-site promotion, videos and presentations
keeping people, planet and profits in mind (Shil, 2012). A significant
promotional tool is green advertising as a promotional message that can attract
the wants and desires of consumers who care about the environment (Ankit & Mayur, 2013).
Green
advertising according to Davis in Ozkocak (2011: 2)
is that green advertising must provide concrete benefits to the environment and
the characteristics of the message so that it can be distinguished from other
advertisements.
Green
promotion refers to transferring real ecological information to consumers who
participate in company activities. In addition, the company's promise to
safeguard natural assets is to determine which target audience is attractive (Shirsavar & Fashkhamy, 2013). Green promotion
means promoting the actual transfer of environmental information to consumers
with activities related to company activities. The actual promotion of a
product or company requires a change in the product, process, or focus of
participation (such as a non-strategic change). There is a lot of concern among
consumers about environmental campaigns. The right way to deal with this
problem is to focus on continuous communication rather than using the limited
concept of limited green promotion. Ongoing communication places great emphasis
on verbal formation to stakeholders, especially customers, and aims to raise
awareness and training to strengthen the social and environmental reputation of
the company and its products.
Company
image is the image of ideas, thoughts and impressions of the position and shows
that the company image is the perception of the company. The company image
reflects the company's performance which is formed in the memory of consumers.
The image of corporate social responsibility can have a positive effect on the
image of the company and in society. A company that is committed to economic
development, ethics within the organization, supporting employees and their
families, supporting non-profit groups and providing for the needs of society,
has a much better image in the minds of society than other companies (Pomering & Dolnicar, 2009).
Image is
the most important asset of a company. A good image is a powerful tool to
attract consumers to choose the company's products or services, but also
improve consumer satisfaction with the company or organization (Sutojo, 2011: 60). Image provides a positive assessment and
existence of the company in the eyes of the public, namely by showing the
public's view of the company in the long term. A well-formed image will have a
good impact on the achievement of the goals set by the company.
Purchase Intention
(Durianto, 2013) states that buying
interest is the desire to own a product, buying interest will arise when a
consumer is affected by the quality and quality of a product, information about
the product, ex: price, how to buy and the weaknesses and advantages of the product
compared to other brands. .
According
to (Arslan & Zaman, 2014) purchase interest can
be defined as a possibility; a consumer will buy a product or service in the
future. Positive purchase intentions encourage consumers to actual purchase
action or negative purchase intentions discourage consumers from buying them.
(Schiffman & Kanuk, 2000) say that
interest is one of the psychological aspects that has a considerable effect on
behavioral attitudes. Purchase interest can be interpreted as a happy attitude
towards an object that makes individuals try to get that object by paying for
it with money or sacrifice.
Consumer
purchase interest is a consumer behavior in which consumers have the desire to
buy or choose a product, based on experience in choosing, using and consuming
or even wanting a product (Kotler, Philip and Keller, 2012).
(Simamora, 2001) states that buying
interest (purchase intention) for a product arises because of the basic trust
in the product accompanied by the ability to buy the product. In addition, the
purchase intention of a product can also occur with the effect of other people
who are trusted by potential customers. Purchase intention can also arise when
a consumer is very interested in various information about a product obtained
through advertising, the experiences of people who have used it, and an urgent
need for a product.
METHOD
The method used in this research is descriptive and
verification research methods. This research is intended to build a real picture
of a phenomenon that is in the context of the research. With this descriptive
research, various information will be collected in order to test hypotheses or
answer questions concerning research problems.
Verification research basically tests the truth through
data collection in the field. The nature of verification basically wants to
test the truth of a hypothesis which is carried out through data collection in
the field. The verification research aims to determine the effect of the green
product variables, green price, green distribution, green promotion, corporate
image and purchase intention.
To study all research problems, the required data
were obtained through a field survey using a questionnaire. Then analysis and
descriptions of all research problems were carried out through data analysis,
statistical calculations and data interpretation.
Operational
Variables
Definition of variables according to (Sugiyono, 2013) is an attribute or nature or value of an object or
activity that has certain variations that are applied by researchers to study
and then draw conclusions.
Variables in this study consist of independent
variables, namely green product, green price, green distribution, green
promotion and dependent variables, namely corporate image and purchase
intention. Each variable is measured in a Likert scale score which is arranged
based on a 5 (five) scale or a Likert scale which is implemented in five
options, namely: SS (Strongly Agree), has a score of 5, S (Agree), has a score
of 4, KS (Less Agree), has a score of 3, TS (Disagree), has a score of 2, and
STS (Strongly Disagrees), has a score of 1.
Population in this study was taken from all
consumers who consume or use products from food and beverage companies (PT Nestle
Indonesia, PT Indofood CBP Sukses Makmur Tbk, PT Unilever Indonesia Tbk,
and PT Ultra Jaya) in the DKI Jakarta area.
In this study, the sample size was adjusted to the
analytical model used, namely structural equation modeling (SEM). In this
regard, the sample size for SEM using the maximum likelihood (MLE) estimation
model is 100-200 samples (Santoso
et al., 2014).
Referring to (Gronemus et al.,
2010) found that the appropriate sample size is 100 to
200. It is also explained that the minimum sample size is 5 observations for
each estimated parameter and the maximum is 10 observations from each estimated
parameter. In this study, the number of research indicators was 41, so the
minimum sample size was 5 times the estimated number of indicators or 5 x 41 =
205. The number of samples used was more, i.e. 215, so that if there is biased
or invalid data then it is does not reduce the number of respondents below the
minimum sample suggested by (Gronemus et al.,
2010).
Sampling technique uses purposive sampling method, which
is a sampling method based on certain criteria or considerations. In this case
the sample is selected based on consumers over 17 years of age who use food and
beverage company products in the Jakarta area.
Data
Analysis
To analyze the effect of green product, green price,
green promotion, green distribution on corporate image and its implications for
the purchase intention of a food and beverage company in Jakarta, which was
carried out using SEM (Structural Equation Model) analysis using the Lisrel 8.80 program.
Comprehensive analysis of all variables in the study
at the multivariate analysis stage was carried out by structural equation
modeling (Structural Equation Model / SEM). In general, SEM analysis techniques
are divided into 2 main characteristics, namely: 1) the estimation of multiple
interdependence of many variables; and 2) the ability to present unobserved
concepts in these relationships by involving measures of deviation (error) in
the estimation process (Santoso et al.,
2014).
This is similarly stated by (Jöreskog, 1973) in (Santoso et al.,
2014) which states that the SEM analysis technique
consists of 2 parts, i.e.: 1) the measurement section, which connects the
observed variable (which is often referred to as the manifest variable) to the
latent variable ( which is often referred to as construct variables) through a
confirmatory factor model, and 2) structural parts, which connect between
construct variables through a system of simultaneous equations. Estimation of
model parameters uses the maximum likelihood estimation.
RESULTS AND DISCUSSION
Model
feasibility testing is carried out in order to achieve a good model and meet
the GOF requirements on Structural Equation Modeling, the complete SEM model
can be seen in the following figure.

Full Model Path Diagram (Standardized Solution)

Full Model Path Diagram (T-Values)
In Structural Equation Modeling there is
no single statistical test tool to measure or test the model created, generally
there are various types of fit indexes that are used to measure the degree of
conformity between the hypothesized model and the data presented. Therefore,
based on the full model path diagram above, to be able to analyze the research
hypothesis it is necessary to test the suitability of the overall model
(Goodness of Fit Index Full Model Structural). The GOF evaluation of the
research model can be seen in the following table.
Table
1. Goodness of Fit Index Full Model

Source: Wijanto, 2015 and Results of Lisrel 8.80 Processing
If seen in the
table above, all the estimated goodness fit structural models have a good value
even though there are some marginal ones such as Chi-Square and GFI, but
overall the estimated structural models are acceptable, so it can be said that
the relationship between various constructs on this variable is a structural
relationship. . This can be justified in the opinion of (Gronemus et al., 2010) that the
use of 4 - 5 goodness of fit criteria is considered sufficient to assess the
feasibility of a model, provided that each of the criteria for goodness of fit
is absolute fit indices, incremental fit indices, and parsimony fit indices.
represented.
Based
on the results of hypothesis testing, it is found that all hypotheses are
proven to be accepted. The overall results of hypothesis testing can be seen
briefly as follows:
Table 2. Summary of Hyphotesys Testing Results

Based
on the table above, all of the seven hypotheses proposed in this study can be
accepted, either directly or indirectly. Meanwhile, the structural equation
results from the research variables can be seen from the output of lisrel in Structural Equations.
Equation
of Substructure 1
IMAGE
= 0.16*PRODUCT + 0.31*PRICE + 0.34*DISTRI + 0.22*PROMO, Errorvar.=
0.12 , R² = 0.88
Equation
of Substructure 2
PRCHASE = 0.40*IMAGE + 0.20*PRODUCT + 0.14*PRICE +
0.16*DISTRI + 0.17*PROMO, Errorvar.= 0.015 , R² = 0.98
For
substructure equation 1, namely corporate image is significantly influenced by
green product, green price, green distribution and green promotion. The
contribution of the four independent variables to corporate image is 88%, so
there are still 12% other factors that affect corporate image but are not
examined.
For substructure equation 2, namely purchase
intention is significantly and positively influenced by corporate image, green
product, green price, green distribution, green promotion and corporate image.
The contribution of the five independent variables to purchase intention is
98%, so there are still 2% other factors that affect purchase intention but are
not researched.
Based on the results of hypothesis testing and discussion
of theories in previous chapters, the following discussions and interpretations
are carried out:
Effect of Green Product
on Corporate Image
Based on the research results, the t-value is 2.76 > 1.96
so that Ho is rejected and H1 is accepted, which means that there is a positive
effect of green product on corporate image. The path coefficient / R2 is 0.16,
which means the magnitude of the effect of green product on corporate image is
16% and the remaining 89% is another factor not examined.
Green product is a product that is not harmful to humans
and the environment, does not waste resources, does not produce excessive
waste, and does not involve cruelty to animals (Junaedi, 2005). While the corporate
image or corporate image is a reflection of the identity of an organization or
company Kasali (2012) in (Subagja & Susanto,
2019)
Green products are environmentally friendly products made
by companies. Eco-friendly products are ecologically safe products that can
facilitate the long-term goal of protecting and preserving natural habitats,
namely, environmentally friendly products or environmental awareness products,
which are referred to as products designed to reduce the consumption of natural
resources needed and minimize the environmental impact that is harm through the
entire life cycle of these items (Tseng & Hung, 2013).
Environmentally friendly products offered by the company
to consumers and proven to be completely free from toxins, safe for consumption
or use can enhance the company's image. Environmentally friendly products are
not only limited to products but product packaging is also considered by
consumers whether the packaging is not harmful to the environment, can be
recycled. Consumers will always remember the company's image when using or
consuming the products offered by the company.
Results of this study are in line with research conducted
by (Mallek, 2016), (Folasayo, 2019) which states that green products can affect corporate
image or corporate image.
Effect of Green Price on
Corporate Image
Based on the research results, the t-value is 5.95 >
1.96 so that Ho is rejected and H2 is accepted, which means there is a positive
effect of green price on corporate image. The path coefficient / R2 is 0.31,
which means that effect of green price on corporate image is 31% and the
remaining 69% is another factor not examined.
Price is an important element in the marketing mix, most
customers are willing to pay a premium price if there is additional perception
in the product. This increase in value can be caused by performance, function,
design, attractive shape or taste. Environmental advantages are only an added
bonus, but are often the determining factor between product value and quality.
Consumers who care about environmental sustainability
will always remember the company's image, and will continue to remember even
though the price of environmentally friendly products offered is more expensive
than conventional products.
Results of this study support the research conducted by (Mallek, 2016), (Folasayo, 2019), which states that green prices can affect corporate
image.
Effect of Green
Distribution on Corporate Image
Based on the research results, the t-value is 5.16 >
1.96 so that Ho is rejected and H3 is accepted, which means there is a positive
effect of green distribution on the corporate image. The path coefficient / R2
is 0.34 which means that the magnitude of the effect of green product on
corporate image is 34% and the remaining 66% is another factor not examined.
Green distribution can be done by utilizing retailers or
distributors appropriately. For example, to support a packaging recycling
program, companies can work with retailers to encourage consumers to return
packaging through them, in exchange for souvenirs, discounted prices, vouchers,
or promotional products. Green distribution that is done well and can minimize
the impact on environmental damage can improve the company's image in the eyes of
consumers.
The results of this study support the research conducted
by (Mallek, 2016), (Folasayo, 2019) which states that green promotion can affect corporate
image.
Effect of Green Promotion
on Corporate Image
Based on the research results obtained t-value 2.80 >
1.96 so that Ho is rejected and H4 is accepted, which means there is a positive
effect of green promotion on corporate image. The path coefficient / R2 is 0.22
which means the magnitude of the effect of green promotion on corporate image
is 22% and the remaining 78% is another factor not examined.
Green promotion
carried out by companies must pay attention to the relationship between
products and the environment, the lifestyle of using or consuming green
products, presenting the company's image through social responsibility
activities. Green promotion of company activities to campaign for programs that
raise environmental issues to strengthen the image as an environmentally
friendly company. This promotion can be done through advertisements, logos on
labels, sales promotions (through packaging), or public relations
Green promotion
that is carried out well and right on target will always remember and associate
with the company's image in the eyes of consumers, and will increase in line
with the fact that the environmentally friendly products offered truly meet
consumer expectations.
Results of this
study support the research conducted by (Mallek, 2016), (Folasayo, 2019) which states that green promotion can affect corporate
image.
Effect of Green Product, Green Price, Green Distribution
and Green Promotion Simultaneously On Corporate Image in Food and Beverage
Companies in Indonesia.
The green marketing mix which includes green products
that are made and produced is in accordance with the concept of environmentally
friendly, green prices offered are in accordance with green products, green
distribution that supports the environment and green promotion that is done
well by the company, it can simultaneously affect the image Food and Beverage
company.
Effect of Green Product on Purchase Intention
Based on the research results, the t-value is 4.80 >
1.96 so that Ho is rejected and H6 is accepted, which means that there is a
positive effect of green product on purchase intention. The path coefficient /
R2 is 0.20, which means that the effect of green product on purchase intention
is 20% and the remaining 80% is another factor not examined.
Green products or
environmentally friendly products are how the products produced by companies
can answer various problems faced by the macro environment, for example waste,
pollution, the ozone layer, global warming, nutrition, health. So that the
company produces products that can be recycled, energy efficient, non-CFCs,
non-cholesterol
Green products or
environmentally friendly products including packaging offered by companies with
various advantages of the products they have compared to conventional products
can attract consumers to try and buy environmentally friendly products offered by
companies.
Results of this
study are in line with research conducted by (Thoria O Mahmoud, 2018), (Thoria Omer Mahmoud et
al., 2017), Shrestha, Shulov. (2016), (Maichum et al., 2017), (Zhu, 2012), (Ansar, 2013), (Wu & Chen, 2014) (Mankiw, 2012) which state that green products can affect purchase
intention.
Effect of Green Price on Purchase Intention
Based on the research results, the t-value is 3.24 >
1.96 so that Ho is rejected and H7 is accepted, which means that there is a
positive effect of green price on purchase intention. The path coefficient / R2
is 0.14, which means the magnitude of the effect of green price on purchase
intention is 14% and the remaining 86% is another factor not examined.
Green price
considers people, planet and profit in methods that safeguard the health of
employees and society and ensure efficient productivity. Value can be added to
it by changing its appearance, functionality and through customization, etc. (Gaidhani et al., 2019).
Green price
offered for environmentally friendly products to consumers becomes a consumer's
consideration even though the price is relatively high compared to conventional
prices, but consumers who care about environmental sustainability can
understand the prices offered by the company and are still interested in making
purchases. This is done by consumers as a form of their support for
environmental sustainability.
Results of this
study support research conducted by (Thoria O Mahmoud, 2018), (Thoria Omer Mahmoud et
al., 2017), Shrestha, Shulov. (2016), (Maichum et al., 2017), (Zhu, 2012), (Ansar, 2013), (Wu & Chen, 2014) (Mankiw, 2012) who state that
green prices can affect purchase intention.
Effect of Green Distribution on Purchase Intention
Based on the research results, the t-value is 3.01>
1.96 so that Ho is rejected and H8 is accepted, which means that there is a
positive effect of green distribution on purchase intention. The path
coefficient / R2 is 0.16 which means the magnitude of the effect of green
distribution on purchase intention is 16% and the remaining 84% is another
factor that is not examined.
Green
distribution is a location where a product can be purchased. This can mean
physical or virtual stores. Product distribution must be from satisfactory
channels, and clearly and properly placed in an environmentally safe place
where there is no contamination whatsoever. For a green business to be
established and to be priced competitively, companies must ensure that their
distributors care about the environment and establish that they set a green
distribution strategy (Goldman, 2012).
Distribution
carried out by companies with due regard to the impact on environmental damage,
such as packing goods using wood materials, will affect the consumer's view of
the products that the company offers and can also influence consumer purchase
interest.
Results of this
study support research conducted by (Thoria O Mahmoud, 2018), (Thoria Omer Mahmoud et
al., 2017), Shrestha, Shulov. (2016), (Maichum et al., 2017), (Zhu, 2012), (Ansar, 2013), (Wu & Chen, 2014) (Mankiw, 2012) who state that
green distribution affects purchase intention.
Effect of Green Promotion on Purchase Intention
Based on the research results, the t-value is 2.97 >
1.96 so that Ho is rejected and H9 is accepted, which means that there is a
positive effect of green promotion on purchase intention. Path coefficient / R2
is 0.17 which means the magnitude of the effect of green promotion on purchase
intention is 17% and the remaining 83% is another factor not examined.
Green promotion
involves and communicates information about environmental commitments and
efforts made by companies to consumers. This element in the green marketing mix
includes various activities such as paid advertising, public relations, sales
promotion, direct marketing, and on-site promotion (Fan and Zeng, 2011).
Green promotion
that is carried out well and informs clearly about environmentally friendly
products, starting from the raw material for the product itself, packaging,
distribution, raising environmental issues that companies do with the community
to strengthen its image as an environmentally friendly company can attract the
attention of consumers and are interested in doing purchase.
Results of this
study support research conducted by (Thoria O Mahmoud, 2018), (Thoria Omer Mahmoud et
al., 2017), Shrestha, Shulov. (2016), (Maichum et al., 2017), (Zhu, 2012), (Ansar, 2013), (Wu & Chen, 2014) (Mankiw, 2012) which state that green promotion can affect purchase
intention.
Effect of Corporate Image on Purchase Intention
Based on the research results, the t-value is 5.47 >
1.96 so that Ho is rejected and H9 is accepted, which means that there is a
positive effect on corporate image on purchase intention. The path coefficient
/ R2 is 0.40, which means that the effect of corporate image on purchase
intention is 40% and the remaining 60% is another factor not examined.
Company image is
a reflection of the identity of an organization or company, in which a company
is able to have several different images in the eyes of the public (Kasali,
2009: 30). Company image is the image of ideas, thoughts and impressions of the
position and shows that the company image is the perception of the company. The
company image reflects the company's performance which is formed in the memory
of consumers.
Companies that
have a good image in the eyes of consumers will influence consumer choices in
making purchases. At that time consumers will remember that the company has a
good reputation and quality so that consumers will make purchases for the
company's products. In this case, a good company image will have an effect on
consumer buying interest. It can be said that company image can affect consumer
buying.
Results of this
study support the research conducted by (Ronaldo et al., 2018), (Kijpanjasub &
Jitkuekul, 2019), (Chao & Liao, 2016) which state that corporate image can affect purchase
intention.
Effect of Green Product, Green Price, Green Distribution,
Green Promotion dan Corporate Image Simultaneously on Purchase Intention in
Food and Beverage Companies in Indonesia
Green marketing mix which includes the green products
offered is truly environmentally friendly, the green price is in accordance
with the green product, green distribution that supports the environment, green
promotion that is well done by the company and the corporate image that has
been formed in consumers simultaneously affect purchase intention of Food and
Beverage companies.
CONCLUSION
Based on the results of research that has been conducted
on the effect of the marketing mix with green marketing insight (green product,
green price, green distribution and green promotion) on corporate image and its
implications for the purchase intention of food and beverage company products
in Indonesia and the discussion in previous chapters and based In the results
of statistical calculations using the SEM (Structural Equation Model) model and
using the Lisrel version 8.8 program, several conclusions can be made as
follows:
1.
There is effect of green product on corporate image in food and beverage
companies in Indonesia.
2.
There is effect of green price on corporate image in food and beverage
companies in Indonesia.
3.
There is effect of green
distribution on corporate image in food and beverage companies in Indonesia.
4.
There is effect of green promotion on corporate image in food and beverage
companies in Indonesia.
5.
There is effect green product, green price, green distribution and green
promotion simultaneously on corporate image in food and beverage companies in
Indonesia.
6.
There is effect of green product on
purchase intention in food and beverage companies in Indonesia.
7.
There is effect of green price on purchase intention in food and beverage
companies in Indonesia.
8.
There is effect of green distribution on purchase intention in food and
beverage companies in Indonesia.
9.
There is effect of green promotion on purchase intention in food and
beverage companies in Indonesia.
10. There is effect of
corporate image on purchase intention in food and beverage companies in
Indonesia.
11. There is effect of green product, green price, green
distribution, green promotion and corporate image simultaneously on purchase
intention in food and beverage companies in Indonesia.
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