An empirical analysis on millennials' buying decision of green products in Jakarta

Tanujaya, Catherine and Wurangian, Marshall (2019) An empirical analysis on millennials' buying decision of green products in Jakarta. Bachelor thesis, Universitas Pelita Harapan.

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Abstract

As people are becoming increasingly aware about environmental degradation, their understanding of the public consequences of their private consumption behavior has led to growing trends of purchasing green products. Sustainability issues have caused consumers to adjust their commercial choices to reflect their responsibility towards preserving the environment. One particular group behind the green trend driving force are the millennials. Millennials are the generation cohort whose strong environmental values are reflected on their purchasing decisions. As an emerging consumer powerhouse, millennials’ propensity to actively seek green products has attracted businesses to capitalize on their green demands. Despite this, the specific factors that influence millennials’ decision to buy green products are not fully understood by marketers. This study analyzes the influence of environmental consciousness, eco-labeling, attitude, green marketing, and willingness to pay on the buying decision of green products among millennials in Jakarta. As the world’s fastest sinking city and most polluted in Southeast Asia, the environmentally-ravaged city of Jakarta will be the setting of this research. Quantitative method is used in the research of this study, and will utilize the distribution of a structured questionnaire to gather data. The sample is taken using the purposive sampling method with 150 respondents belonging to the millennial group (born 1980-2000) who live in Jakarta. With regression analyses, the research has found that environmental consciousness, attitude, green advertising, and willingness to pay have a positive and significant influence on the buying decision of green products among millennials. Eco-labeling was the only variable that was determined to not exert a positive influence on millennials’ green product buying decision. This study allows for businesses to understand millennials’ green purchasing behavior for an implementation of green marketing strategies based on empirical information.

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