Analysis of the Use of Environmentally Friendly Raw Materials and Environmental Awareness on Purchasing Decisions and Consumer Loyalty in the Central Java Manufacturing Industry

Authors

  • Eva Yuniarti Utami Universitas Sebelas Maret
  • Supriandi Supriandi Telkom University
  • Rival Pahrijal Universitas Nusa Putra

DOI:

https://doi.org/10.58812/wsis.v2i03.733

Keywords:

Environmentally Friendly Raw Materials, Environmental Awareness, Purchasing Decisions, Consumer Loyalty, Central Java Manufacturing Industry

Abstract

This research investigates the positive relationships between environmentally friendly raw materials, environmental awareness, purchasing decisions, and consumer loyalty within the Central Java manufacturing industry. Utilizing a quantitative approach, Structural Equation Modeling (SEM) with Partial Least Squares (PLS) analysis is employed to analyze data collected from 125 respondents. The findings reveal significant positive associations between the use of environmentally friendly raw materials and purchasing decisions, environmental awareness and purchasing decisions, environmental awareness, and consumer loyalty, as well as environmentally friendly raw materials and consumer loyalty. These results emphasize the importance of sustainability initiatives and environmental awareness in driving consumer behavior and fostering loyalty in the manufacturing industry.

References

A. Bello‐Pintado, J. A. D. Machuca, and P. Danese, “Stakeholder pressures and sustainability practices in manufacturing: Consideration of the economic development context,” Bus. Strateg. Environ., vol. 32, no. 7, pp. 4084–4102, 2023.

M. Ferrazzi, S. Frecassetti, and A. P. Staudacher, “Influence of the Lean Approach on Corporate Environmental Sustainability: A Case Study,” in European Lean Educator Conference, Springer, 2022, pp. 285–294.

C. Herrmann, C. Schmidt, D. Kurle, S. Blume, and S. Thiede, “Sustainability in manufacturing and factories of the future,” Int. J. Precis. Eng. Manuf. Technol., vol. 1, pp. 283–292, 2014.

A. K. Bambam and K. K. Gajrani, “Challenges in achieving sustainability during manufacturing,” in Sustainable Materials and Manufacturing Technologies, CRC Press, 2023, pp. 108–124.

K. Nagadi, “Implementation of green, lean and six sigma operations for sustainable manufacturing. A Review,” Int. J. Prod. Manag. Eng., vol. 10, no. 2, pp. 159–171, 2022.

N. Istifadah and C. F. Ananda, “INDUSTRIALIZATION IN EAST JAVA PROVINCE,” 2022.

A. D. Saputra, R. Yanuardi, and A. Maharani, “THE ROLE OF THE MANUFACTURING ON THE INDONESIAN ECONOMY,” Indones. J. Multidiscip. Sci., vol. 2, no. 1, pp. 157–166, 2023.

I. R. Jamil, A. S. Putri, and N. A. A. Suryaatmaja, “Evaluating Green Efficiency of Manufacture Sector and Its Determinants in East Java Province,” East Java Econ. J., vol. 7, no. 1, pp. 90–108, 2023.

R. Relawati, B. Y. Ariadi, H. Harpowo, B. H. Prabowo, L. Neimane, and I. Ekawati, “The Pro-Environmental Producer Behavior on Food Small and Medium Enterprises in Malang, Indonesia,” in E3S Web of Conferences, EDP Sciences, 2023, p. 27.

M. B. Kiran and V. J. Badheka, “Role of materials and manufacturing processes in sustainability,” in Sustainable Materials and Manufacturing Technologies, CRC Press, 2023, pp. 155–166.

A. S. Varde and J. Liang, “Machine learning approaches in agile manufacturing with recycled materials for sustainability,” arXiv Prepr. arXiv2303.08291, 2023.

A. Pommeret, F. Ricci, and K. Schubert, “Critical raw materials for the energy transition,” Eur. Econ. Rev., vol. 141, p. 103991, 2022.

L. Y. Ljungberg, “Materials selection and design for development of sustainable products,” Mater. Des., vol. 28, no. 2, pp. 466–479, 2007.

S. Singh, “Introduction to Sustainability of Manufacturing and Materials Processing Technologies,” in Sustainable Advanced Manufacturing and Materials Processing, CRC Press, 2022, pp. 1–8.

T. Sedej and J. Toroš, “Awareness of the Environmental Impact of Clothing Production and Consumption among Slovenian Women Customers,” Tekstilec, pp. 105–115, 2023.

V. Tamulienė and L. Pilelienė, “Impact of environmental awareness and organic consumption on consumer subjective well-being,” 2023.

T. Gallo, F. Pacchera, C. Cagnetti, and C. Silvestri, “Do Sustainable Consumers Have Sustainable Behaviors? An Empirical Study to Understand the Purchase of Food Products,” Sustainability, vol. 15, no. 5, p. 4462, 2023.

J. Jóźwik-Pruska, P. Bobowicz, C. Hernández, and M. Szalczyńska, “Consumer Awareness of the Eco-Labeling of Packaging,” Fibres Text. East. Eur., vol. 30, no. 5, pp. 39–46, 2022.

H. Hamoudi and C. Avilés-Palacios, “Awareness Campaigns in a Horizontally Differentiated Market with Environmentally Conscious Consumers, Private Versus Public Duopoly,” Int. J. Environ. Res. Public Health, vol. 19, no. 19, p. 12891, 2022.

O. Ogiemwonyi, M. N. Alam, R. Alshareef, M. Alsolamy, N. A. Azizan, and N. Mat, “Environmental factors affecting green purchase behaviors of the consumers: Mediating role of environmental attitude,” Clean. Environ. Syst., vol. 10, p. 100130, 2023.

D. Srinivas, “A Study on the Consumer Behaviour Towards Adapting to Green Products in the Dynamic Environment,” INTERANTIONAL J. Sci. Res. Eng. Manag., vol. 07, Mar. 2023, doi: 10.55041/IJSREM18223.

V. Mishra and K. Kulshreshtha, “Green product purchase decision: a conceptual model of factors influencing the decision of Indian consumers,” Br. Food J., vol. 125, no. 9, pp. 3160–3174, 2023.

T. A. Nugraha and Y. Soelasih, “The factors that shape green buying behavior of eco-friendly shopping bags,” J. Manaj. Maranatha, vol. 22, no. 2, pp. 121–132, 2023.

W. W. A. Dewi, F. Avicenna, and A. A. P. S. Prasetyo, “The Effect of Social Influence on Green Purchasing Behavior on The Purchase of Love Beauty and Planet Brand Products,” in Proceedings of International Conference on Communication Science, 2022, pp. 470–476.

D. Ampera, Y. Iskandar, A. A. S. Tabieh, and Z. A. Soomro, “The role of visuals in cultural learning in the EFL classroom,” Asian ESP J., vol. 17, no. April, pp. 111–125, 2021.

Y. Iskandar, “Entrepreneurial Literacy, Environment, and Intentions of Indonesian Students to Become Social Entrepreneurs,” J. REKOMEN (Riset Ekon. Manajemen), vol. 6, no. 1, pp. 9–18, 2023.

N. A. Al Hafizi and H. Ali, “Purchase Intention and Purchase Decision Model: Multi Channel Marketing and Discount on Medcom.Id Online News Portal,” Dinasti Int. J. Digit. Bus. Manag., vol. 2, no. 3, pp. 460–470, 2021, doi: 10.31933/dijdbm.v2i3.826.

H. Li, L. Mai, W. Zhang, and X. Tian, “Optimizing the credit term decisions in supply chain finance,” … Purch. supply Manag., 2019, [Online]. Available: https://www.sciencedirect.com/science/article/pii/S1478409218302437

A. D. A. Tasci, “A critical review and reconstruction of perceptual brand equity,” Int. J. Contemp. Hosp. Manag., vol. 33, no. 1, pp. 166–198, 2021, doi: 10.1108/IJCHM-03-2020-0186.

S. Hwang, M. Lee, E. Park, and A. P. del Pobil, “Determinants of customer brand loyalty in the retail industry: A comparison between national and private brands in South Korea,” J. Retail. Consum. Serv., vol. 63, p. 102684, 2021.

M. Muntean, I. A. Sorcaru, and L. Manea, “Empirical evidence of tourist satisfaction and loyalty in the case of Bucharest—A partial least squares structural equation modelling approach,” J. Consum. Behav., 2023.

A. Weniger, P. Del Rosario, J. G. Backes, and M. Traverso, “Consumer Behavior and Sustainability in the Construction Industry—Relevance of Sustainability-Related Criteria in Purchasing Decision,” Buildings, vol. 13, no. 3, p. 638, 2023.

H. B. H. Havidz and M. R. Mahaputra, “Brand image and purchasing decision: Analysis of price perception and promotion (literature review of marketing management),” Dinasti Int. J. Econ. Financ. Account., vol. 1, no. 4, pp. 727–741, 2020.

F. Quoquab, N. Z. Mohamed Sadom, and J. Mohammad, “Driving customer loyalty in the Malaysian fast food industry,” J. Islam. Mark., vol. 11, no. 6, pp. 1367–1387, Jan. 2020, doi: 10.1108/JIMA-01-2019-0010.

N. F. Naini, S. Santoso, T. S. Andriani, and U. G. Claudia, “The effect of product quality, service quality, customer satisfaction on customer loyalty,” J. Consum. Sci., vol. 7, no. 1, pp. 34–50, 2022.

J. W. Creswell, “Steps in conducting a scholarly mixed methods study,” 2013.

J. F. Hair, J. J. Risher, M. Sarstedt, and C. M. Ringle, “When to use and how to report the results of PLS-SEM,” Eur. Bus. Rev., vol. 31, no. 1, pp. 2–24, 2019, doi: https://doi.org/10.1108/EBR-11-2018-0203.

B. Ramtiyal, P. Garg, S. Johari, A. P. S. Rathore, and A. Thakrey, “Investigating the effects of corporate social responsibility on sustainable consumer purchase behavior,” J. Glob. Oper. Strateg. Sourc., vol. 17, no. 1, pp. 1–27, 2024.

Z. Zeng, W. Zhong, and S. Naz, “Can Environmental Knowledge and Risk Perception Make a Difference? The Role of Environmental Concern and Pro-Environmental Behavior in Fostering Sustainable Consumption Behavior,” Sustainability, vol. 15, no. 6, p. 4791, 2023.

M. Burkerta, V. Hüttl-Maacka, J. M. Gilb, and D. Rahmanib, “The Influence of Green Consumption Values on How Consumers Form Overall Sustainability Perceptions of Food Products and Brands,” J. Sustain. Mark., vol. 1, no. 19, 2023.

Downloads

Published

2024-03-28

How to Cite

Utami, E. Y., Supriandi, S., & Pahrijal, R. (2024). Analysis of the Use of Environmentally Friendly Raw Materials and Environmental Awareness on Purchasing Decisions and Consumer Loyalty in the Central Java Manufacturing Industry. West Science Interdisciplinary Studies, 2(03), 593–604. https://doi.org/10.58812/wsis.v2i03.733