THE INFLUENCE OF GREEN PRODUCT, GREEN MARKETING, AND BRAND IMAGE ON CONSUMER PURCHASING DECISIONS OF BOTTLED WATER

 

Abdurrazak Alfan1, Ignatius Agus Suryono2, Sudaryatie3

Faculty of Economics, University of Pembangunan Nasional “Veteran” Yogyakarta, Yogyakarta, Indonesia

141190085@student.upnyk.ac.id1,  agus.suryono@upnyk.ac.id*2, sudaryati@upnyk.ac.id3

Abstract

As time progresses, accompanied by the rapid advancement of technology, the awareness and concern of society regarding the importance of preserving the environment has increased. The environmental awareness movement, promoted by both the government and initiatives from society, has begun to be campaigned throughout Indonesia. Business actors as producers who generate various types of waste that have the potential to disrupt environmental sustainability now need to implement the concepts of sustainability and eco-friendliness. Changes in the lifestyle of society, which currently tends to be practical and instant, have resulted in the emergence of various products that support these desires. The bottled water industry in Indonesia has experienced growth and development from year to year. Looking at the various phenomena above, many companies have gradually shifted to using environmentally friendly raw materials for their products. The study was conducted through a survey using a questionnaire as a data collection tool. The population and sample in this study are 128 consumer students from FEB UPN "Veteran" Yogyakarta, using primary data with the purposive sampling method. The criteria for respondents in this study are consumers who are active students of FEB UPN "Veteran" Yogyakarta, considering purchasing bottled water, considering green products when purchasing bottled water products, considering green marketing when purchasing bottled water products, and considering the brand image of bottled water when making a purchase decision. The data analysis technique used is the multiple linear regression technique. The results show that: 1) the Green Product, Green Marketing, and Brand Image together have a significant influence on purchase decisions, 2) the Green Product has a positive and significant influence on purchase decisions, 3) Green Marketing has a positive and significant influence on purchase decisions, 4) Brand Image has a positive and significant influence on purchase decisions.

 

Keywords: green product, green marketing, brand image, purchase decision.

 

Pendahuluan  

Along with the development of time, along with the rapid advancement of technology, public awareness and concern about the importance of preserving the environment have increased. Nowadays, people understand and are aware of the impacts that will arise if the sustainability of the environment is not well-preserved. Waste, especially plastic waste, is a problem that receives the greatest attention from the public. The increasing amount of plastic waste is difficult to recycle. Based on data released by the Ministry of Environment and Forestry in 2021, the total national waste reached 68.5 million tons. Of this, 17 percent, or around 11.6 million tons, was contributed by plastic waste (cnnindonesia.com, 2022). With these facts, it is not surprising that the environmental conditions in Indonesia are threatened. Environmental awareness campaigns that are promoted by both the government and initiatives from the community are starting to be intensified throughout Indonesia. Business actors, as producers who generate various types of waste that have the potential to disrupt environmental sustainability, now need to implement sustainability and eco-friendly concepts. Changes in people's lifestyles that tend to be practical and instant have resulted in the emergence of various products that support these desires. The bottled drinking water industry in Indonesia has experienced growth and development from year to year. Considering the various phenomena above, now many companies have gradually switched to using environmentally friendly raw materials for their products. Bottled water is a bottled drinking water company that has implemented green product and green marketing.

However, in reality, the problem is the increasing amount of bottled drinking water waste that is affecting the environment and causing negative climate change. This waste increase shows that consumers in making purchasing decisions for bottled drinking water products still lack consideration and information regarding the environmental impact of the products. This issue is supported by the initial observations of the researcher. Based on the initial observation of 35 respondents who were going to make a purchasing decision for bottled drinking water, it was found that 77.1% of the respondents did not consider environmentally friendly products as a buying decision factor. Furthermore, the results showed that 80% of the respondents did not choose bottled drinking water because it was marketed with the concept of environmental conservation (green marketing). These results indicate that the implementation of bottled water's green product and green marketing strategies still has a limited impact on reducing plastic waste in Indonesia. This research aims to determine the influence of the Green Product, Green Marketing, and Brand Image on Purchase Decisions.

Kotler & Amstrong (2008) stated that purchase decision is buying the most preferred brand. According to Peter & Olson (2013) purchase decision is a process undertaken to combine consumer-acquired knowledge as consideration to choose between two or more alternatives so that one product can be decided upon. Kotler & Keller (2009) several stages in purchase decision-making are explained:  Problem Recognition, Information Search, Alternative Evaluation, Purchase Decision, Post-Purchase Behavior

Peattie (1995) states that Green Products are products or services that have significant environmental considerations compared to other conventional products that compete in the market. The understanding of environmentally conscious products means a long process of "green activities" before finally producing green products. According to Rath (2013), green products are industrial products that use environmentally friendly technologies in their production process, thus avoiding harmful impacts on the environment.

Criteria for green products or environmentally friendly products according to D’Souza et al. (2006) are as follows: Product perception. Green products are perceived as products that are not hazardous when used by humans, animals, and the environment; Packaging. Green product packaging uses specific elements and can demonstrate its environmental concern to consumers; Composition of content. The use of recycled materials can justify usage within certain limits, and claims of overall usage at lower levels can minimize damage to the environment.

According to Grundey & Zaharia (2008) green marketing is any planned activity to facilitate change with the aim of satisfying human needs or desires, while minimizing impact on the natural environment. Lozada (2000) defines green marketing as the application of a marketing tool to facilitate change that provides organizational satisfaction and individual goals in maintaining, protecting, and conserving the physical environment.

According to McDaniel & Rylander (1993) green marketing is one of the key elements in achieving strategic business success in the future. The phenomenon of increasing environmental awareness should make companies that want to become environmental market leaders not only respond but also become leaders in environmental programs. Green marketing must have two targets: improving environmental quality and consumer satisfaction. The benefits of implementing green marketing strategies in a company's marketing activities are developing a new environmentally related product, accessing new market segments, and increasing company profits (Ottman, Stafford, & Hartman, 2006).

According to Kotler & Keller (2009) brand image is a consumer's perception of a company or its products. The image of a brand can influence the perception and views of consumers towards the company or its products. According to Kotler & Keller (2009), brand image must be built through various available media, and it should be sustainable. The messages conveyed can be illustrated through symbols, visuals, atmosphere, and events.

This research framework refers to several previous research journals. Yulfita Aini & Sulastri (2022) conducted research on the effect of green products on purchasing decisions for Aqua, which stated that green products have a positive and significant effect on purchasing decisions for AQUA mineral water. Sugi A & Khuzaini (2017) studied the effect of green marketing on purchasing decisions for bottled water, stating that green marketing has a positive and significant effect on purchasing decisions for bottled drinking water in Surabaya. Finally, H. Al Ghozali & Purwanto (2019) researched the effect of brand image on purchasing decisions for Nestle Pure Life, stating that brand image has a positive effect on purchasing decisions for Nestle Pure Life drinking water in Semarang City.

 

Figure 1 – Framework for research

 

The hypotheses in this study are as follows:

H1: Green Product, Green Marketing, and Brand Image together have a significant effect on the purchasing decision of bottled water among students of FEB UPNVYK.

H2: Green Product has a positive and significant effect on the purchasing decision of bottled water among students of FEB UPNVYK.

H3: Green Marketing has a positive and significant effect on the purchasing decision of bottled water among students of FEB UPNVYK.

H4: Brand Image has a positive and significant effect on the purchasing decision of bottled water among students of FEB UPNVYK.

 

Metode

The study was conducted through a survey using a questionnaire as a data collection tool. The population and sample in this study are 128 consumer students from FEB UPN "Veteran" Yogyakarta, using primary data with the purposive sampling method. The criteria for respondents in this study are consumers who are active students of FEB UPN "Veteran" Yogyakarta, considering purchasing bottled water, considering green products when purchasing bottled water products, considering green marketing when purchasing bottled water products, and considering the brand image of bottled water bottled water when making a purchase decision. This research uses a quantitative research method with the aim of testing a hypothesis that has been formulated (Sugiyono, 2017).

 

Results and Discussion

The data analysis method used in this study is multiple linear regression using SPSS 25 as the analysis tool.

Validity Test

Table 1. Results of Validity Test

No

Variable

Item

Correlation Coefficient

r-Table

Sig.

Description

 

Green Product

X1.1

0.800

0.361

0.000

Valid

1

X1.2

0.892

0.361

0.000

Valid

 

X1.3

0.828

0.361

0.000

Valid

 

Green Marketing

X2.1

0.907

0.361

0.000

Valid

2

X2.2

0.831

0.361

0.000

Valid

 

X2.3

0.679

0.361

0.000

Valid

 

Brand Image

X3.1

0.847

0.361

0.000

Valid

3

X3.2

0.770

0.361

0.000

Valid

 

X3.3

0.825

0.361

0.000

Valid

 

Purchase Decision

Y1.1

0.879

0.361

0.000

Valid

4

Y1.2

0.739

0.361

0.000

Valid

 

Y1.3

0.780

0.361

0.000

Valid

 

Y1.4

0.628

0.361

0.000

Valid

Source: Primary data, data processed in 2023

 

Based on the results shown in the table above, it can be observed that the instrument can be considered valid for measuring the variables as the calculated r values > r table values for all variables, and the resulting sig values are < 0.05 for all variables.

Reliability Test

Table 2. Result of Reliability Test

No

Variable

Coefficient Cronbach Alpha

Critical Value

Description

1

Green Product

0.792

0.7

Reliable

2

Green Marketing

0.738

0.7

Reliable

3

Brand Image

0.739

0.7

Reliable

4

Purchase Decision

0.742

0.7

Reliable

Source: Primary data, data processed in 2023

Based on the results shown in the table above, it can be concluded that the Cronbach's alpha coefficient for all variables is > 0.7, indicating that the data is reliable and suitable for research.

Hypothesis Testing

a.      F-Test

The F statistical analysis aims to show whether all independent variables included in the model have a significant influence together on the dependent variable (Imam Ghozali, 2017).

 

Table 3. Table of F-Test

ANOVA

Model

Sum of Squares

df

Mean Square

F

Sig.

Regression

Residual

Total

90.488

184.481

274.969

3

124

127

30.163

1.488

20.274

.000b

Source: Primary data, data processed in 2023

 

 

Based on the results shown in the table above, it can be concluded that the obtained F-value is 20.274 and the probability is 0.000. Since the Sig F-value is < 0.05 (0.000 < 0.05), Ha is accepted. In other words, green product, green marketing, and brand image together have a significant effect on the purchasing decisions of bottled water products among FEB UPNVYK students.

b.      t-Test

The t-test is basically aimed to show how far the influence of one independent variable (partially) on the dependent variable assuming that the other independent variables are considered constant.

Table 4. Multiple Regression Results

Model

Unstandardized Coefficient

Standardized Coefficient

t

Sig

B

Std. Error

Beta

Constant

Green Product

Green Marketing

Brand Image

5.888

.358

.264

.251

1.553

.109

.109

.122

 

.294

.210

.188

3.792

3.293

2.437

2.060

.000

.001

.016

.042

Variable Dependent : Purchase Decision

 

 

R Square

.329

Sig F:

.000

F Value:

20.274

Source: Primary data, data processed in 2023

 

The results presented in Table 4 show the significance values for each independent variable. The following are the results:

1)      The Influence of Green Product variable on Purchase Decision

Based on the results shown in Table 4, the Green Product variable has a t-value of 3.293 with a significance value of 0.001. Obtaining a significance value ≤ 0.05 can be concluded that the Green Product variable has a significant positive influence on the purchase decision of bottled water among FEB UPNVYK students. Therefore, hypothesis 2 is supported.

2)      The Influence of Green Marketing variable on Purchase Decision

Based on the results shown in Table 4, the Green Marketing variable has a t-value of 2.437 with a significance value of 0.016. As the obtained significance value ≤ 0.05, it can be concluded that the Green Marketing variable has a significant positive influence on the purchase decision of bottled water among FEB UPNVYK students. Therefore, hypothesis 3 is supported.

3)      The Influence of Brand Image variable on Purchase Decision

Based on the results shown in Table 4, the Brand Image variable has a t-value of 2.060 with a significance value of 0.042. Obtaining a significance value ≤ 0.05 can be concluded that the Brand Image variable has a significant positive influence on the purchase decision of bottled water among FEB UPNVYK students. Therefore, hypothesis 4 is supported.

c.       Coefficient of Determination (R2)

The coefficient of determination (R˛) as defined by Ghozali (2017) aims to measure how well a model is able to explain the changes in the independent variables that are caused by the dependent variable.

 

Table 5. The Result of The Coefficient of Determination

Model Summary

Model

R

R Square

Adjusted R Square

Std. Error of the Estimate

1

.574a

.329

.313

1.220

Source: Primary data, data processed in 2023

 

 

Based on the results shown in Table 5 above, it is known that the adjusted R-square value is 0.313 or 31%. This can be interpreted as 31% of the purchase decision variable can be explained by the three independent variables: green product, green marketing, and brand image. Meanwhile, the remaining 69% with a magnitude outside the research model is explained by other independent variables.

 

DISCUSSION

a.       The Joint Effect of Green Product, Green Marketing, and Brand Image on Purchasing Decisions among FEB UPN "Veteran" Yogyakarta Students

Based on the above calculations, it can be concluded that green product, green marketing, and brand image have a significant joint effect on purchasing decisions for bottled water products among FEB UPN "Veteran" Yogyakarta student consumers.

When consumers have a high perception of green products, accompanied by good improvements in green marketing and brand image, it will have an impact on the increase in purchasing decisions for bottled water products among FEB UPN "Veteran" Yogyakarta student consumers. It is important for manufacturers to truly produce environmentally friendly (green) products, followed by an improvement in the implementation of good green marketing strategies. This will result in a good brand image that can guide consumers to make purchasing decisions for the product.

b.      Influence of Green Product (X1) on Purchase Decision among FEB UPN "Veteran" Yogyakarta Students

Based on the above calculations, it can be stated that green product has a positive and significant effect on the purchase decision of AMDK products. This research supports previous studies conducted by Yulfita Aini & Sulastri (2022), which stated that green product has a positive and significant influence on the purchase decision of AQUA branded bottled water.

Therefore, it can be interpreted that consumers who care about environmental sustainability will consider environmentally friendly products when making a purchase decision. In light of these results, as a producer must continuously improve its production of environmentally friendly products as an effort to support environmental preservation, which has become an issue frequently discussed by various parties. Consumers agree that bottled water's AMDK has a good impact and is easily recyclable. This leads to a change in consumer behavior, characterized by a lifestyle that prioritizes health and environmental sustainability, thereby fostering and increasing the purchase decision of bottled water’s AMDK product, which is declared as an environmentally friendly product.

c.       The Influence of Green Marketing (X2) on Purchase Decision among FEB UPN "Veteran" Yogyakarta Students

Based on the calculations above, it can be stated that green marketing has a positive and significant influence on the purchase decision of bottled water mineral water products among FEB UPN "Veteran" Yogyakarta students.

This research result is in line with previous research conducted by Sugi A & Khuzaini (2017) that green marketing has a positive and significant influence on the purchase decision of bottled water mineral water in Surabaya. The findings demonstrate that if green marketing is intensified, the purchase decision for bottled water mineral water products among FEB UPN "Veteran" Yogyakarta students will also increase. If the implementation of green marketing is done correctly according to the company's claim to support environmental conservation efforts, consumers will receive it well and tend to consider it when making purchasing decisions for products released by the company. Therefore, the mineral water producer must consistently and sustainably apply green marketing in every business activity.

d.      The Effect of Brand Image (X3) on Purchase Decision Among FEB UPN "Veteran" Yogyakarta Students

Based on the calculations above, it can be stated that brand image has a positive and significant effect on the purchase decision of bottled water products among FEB UPN "Veteran" Yogyakarta students.

 

This result shows and proves that the higher the brand image, the higher the purchase decision of bottled water products among FEB UPN "Veteran" Yogyakarta students. Therefore, it is essential for the producer of bottled water to build a brand image towards its consumers so as to encourage purchase decision. Products with a good brand image can make consumers make a purchase decision. This research result also supports and is in line with previous research conducted by  H. Al Ghozali & Purwanto (2019), which stated that brand image has a positive effect on the purchase decision of Nestle Pure Life bottled water in Semarang City.

 

Conclusion

The results of this study show that the order of the greatest influence of the variables that affect the purchase decision of bottled water consumers is green products, green marketing, and brand image. It can also be known that green products, green marketing, and brand image together have a significant influence on the purchase decision of bottled water consumers.

Based on these results, AMDK company needs to improve and enhance its environmentally friendly products, so that they can be considered by consumers when making purchase decisions, as well as to support efforts to preserve the environment, which ultimately will form a good brand image in the eyes of consumers.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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