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Loyalty Formation towards Eco-Friendly Plastic Products: The Role of Green Trust and Green Perceived Risk
Mohamad Reza Pahlevi (2019) | Skripsi | Manajemen
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Google Trends states that the popularity of eco-friendly products in Indonesia is low in the past five years compared to other countries. Also, the popularity of several large companies offering eco-friendly plastic products in Indonesia has fluctuated in the past five years. As an industry based on an ‘eco-friendly themed’, eco-friendly plastic products in Indonesia has immerse possibilities that can be developed. Because the demand of eco-friendly plastic products tends to continuously change, creating customer loyalty in this industry are challenging. Thus, eco-friendly plastic product industries need to endlessly innovate their offers in order to create customer loyalty. Creating loyalty among eco-friendly plastic products customers is important, but none of past studies has explored the role of green trust and green perceived risk in green loyalty model as a single comprehensive model. This research explores the role of green trust and green perceived risk in loyalty formation towards eco-friendly plastic products. This research uses an explorative-descriptive approach focusing on eco-friendly plastic products in Indonesia. Data were collected through the distribution of questionnaires to 400 consumers who have purchased eco-friendly plastic products in Bandung, Indonesia. The data were analysed by using partial least squares structural equation modelling (PLS-SEM). The findings show that green trust and green perceived risk have an important role in loyalty formation towards eco-friendly plastic products. Moreover, this research reveals that green perceived quality, green perceived value, green satisfaction, green trust, and green perceived risk are significant drivers of loyalty towards eco-friendly plastic products. This research provides a guidance for developing a marketing strategy for eco-friendly plastic product industries. Keywords: Eco-friendly product, green loyalty, green quality, green value, green satisfaction, green trust, green risk.
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