Management Science Letters (Jan 2021)

The effects of customer perceived value and perceived innovation on green products

  • Alamsyah, Doni Purnama,
  • Othman, Norfaridatul Akmaliah,
  • Setiadi, Ahmad,
  • Mazia, Lia,
  • Hanafiah, Rudiah Md

DOI
https://doi.org/10.5267/j.msl.2020.10.027

Abstract

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Customer behavior of environmentally friendly products becomes marketing attention by implementing a green marketing strategy to improve customer’ green trust. The study concentrates on the correlation of eco-label attribute, perceived innovation, perceived quality, and green trust of a customer. The study was conducted in 2020 with a survey of supermarket’s customers who were familiar with green products. There were 200 customers who were selected randomly; data from a customer was taken by questionnaire. Then, data from the questionnaire was processed by using SEM approach through SmartPLS. The research finding determined that the implementation of an eco-label attribute may influence on customer’ green trust directly through customer perceived quality. Furthermore, it was determined that customer perceived quality could play the mediation role between eco-label attributes and green trust. Besides, it has known that the value of innovation of green products could not be affected by eco-label attributes and it could not affect customer’s green trust. The study provides a recommendation from the model of green customer behavior with mediation focuses on customer perceived quality. The finding can provide important information for marketers and producers who use the environmental issue, and it is implemented to green marketing strategy.