Effect of Green Product, Green Packaging, Green Advertising

on Green Purchase Intention through Intervening Variables

Green Satisfaction and Green Trust of Employee

at the Directors Office of PTPN II

Lovianna Magda Hasibuan

Isfenti Sadalia

and Rulianda Wibowo

Natural Resources and Environmental Management, Universitas Sumatera Utara, Medan 20155, North Sumatra, Indonesia

Department of Economics and Business, Universitas Sumatera Utara, Medan 20155, North Sumatra, Indonesia

Department of Agribisnis, Universitas Sumatera Utara, Medan 20155, North Sumatra, Indonesia

Keywords: Green Product, Green Packaging, Green Advertising Green Satisfaction, Green Trust, Green Purchase

Intention.

Abstract: This study analysed the effect of Green Product, Green Packaging, Green Advertising on Green Purchase

Intention Through Variables Intervening Green Satisfaction and Green Trust, case studies were conducted at

the Employees of PTPN II's Board of Directors. The approach used is path analysis and a sample of 100

respondents. The results showed that all the variables studied had a significant effect on Green Purchase

Intention (Z) where the variables that had the greatest total effect direct influence and indirect effect

influence were the Green Product variable (X1) which was 148.8%, followed by the Green Advertising

variable (X3) of 76.7 %, and the Green Packaging (X2) variable is 44.9%. The results also showed that the

Green Purchase Intention (Z) model would be better if using the intervening variables Green Satisfaction

(Y1) and Green Trust (Y2) indicated by increasing the significance value and the value of R

1 INTRODUCTION

Consumption levels not based on sustainable

principles globally lead to increasingly severe

environmental problems such as global warming,

water, air and soil pollution, and waste that

encourage people to change their conventional

consumption patterns and purchasing behaviour to

solve environmental problems. Consequently, the

phenomenon of green consuming behaviour has

evolved as a new paradigm for practitioners and

researchers in the field of contemporary consumer

research (Deepak, 2018).

Consumers will be attracted to the product

through its ability to be recycled and its natural

chemical content, and by properly discriminating

consumption of organic, energy-efficient or

biodegradable packaging products. As proposed by

Nugrahadi (2002) and Johri and Sahasakmontri in

Chung and Kim (2011), that green product is an

environmentally product. Furthermore, Nursanti and

Melisa (2011) said that green advertising involves

the packaging of advertisement in the form of

showing environmental awareness to give impact to

environmentally friendly products so that the more

strategic role to increase product sales.

In addition to ideas related to green product,

green advertising and green advertising are also

developing other ideas that affect consumers' buying

intentions towards environmentally friendly

products, such as the concept of green trust and

green satisfaction (Chen, 2010). Chen (2010) defines

green beliefs as consumer’s desire to depend on an

object. Meanwhile, satisfaction is the level of overall

satisfaction or satisfaction felt by consumers,

resulting from the performance of the product to

meet the desires, expectations, and consumer needs

(Mai, 1999; Oliver, 1994, 1996; Olsen, 2002) in

Chen (2010).

2 LITERATURE REVIEW

Green Product is an environmentally sound product.

A product designed and processed in such a way as

246

Magda Hasibuan, L., Sadalia, I. and Wibowo, R.

Effect of Green Product, Green Packaging, Green Advertising on Green Purchase Intention through Intervening Variables Green Satisfaction and Green Trust of Employee at the Directors

Ofﬁce of PTPN II.

DOI: 10.5220/0009900900002480

In Proceedings of the International Conference on Natural Resources and Sustainable Development (ICNRSD 2018), pages 246-251

ISBN: 978-989-758-543-2

to reduce the effects that may contaminate the

environment, both in production, distribution and

consumption (Nugrahadi, 2002).

Several important indicators of green product

include 1) the ability of the product to be recycled,

2) the green product has a positive impact on the

environment, 3) the green product can reduce the

damage to the environment, 4) the green product can

save energy, 5) consuming green product is a good

attitude and 6) green product gives convenience

preference to be consumed by consumers (Chen,

Chen and Tung, 2018). Environmental pollution

problems caused by packaging have become

increasingly serious (Zhang, 2018).

Therefore, today most of the companies in the

world want to contribute to participate in promoting

green packaging. Research Klaiman, Ortega and

Garnache (2016) suggested that, today consumers

prefer and love products that have environmentally

friendly packaging, can be used repeatedly, using

environmentally friendly materials. Green packaging

indicator according to Rokka & Uusitalo (2008),

Rundh (2009); Draskovic et al. (2009) among

others; 1) packaging on green product can be

recycled, 2) packaging on green product can be

reused, 3) packaging on green product made from

recycled material and 4) packaging on green product

not using hazardous materials. The results of Joshi,

Patel and Dave (2018) revealed that the meaning for

green consumer behavior variables is that consumers

will buy products in recyclable / biodegradable

packaging rather than non-recyclable packaging

products cannot be decomposed.

Zinkhan and Carlson (1995) in Stokes (2007)

describe environmental-aware advertising as a

promotional message that appeals to the needs and

desires of consumers' concerns about the

environment (Belch, 2001). Chen, Chen and Tung

(2018) mentioned that green advertising indicator is

influenced by media exposure that show

advertisement and propaganda of environmentally

friendly products on TV, radio, newspaper and

magazine. Mohr et al. (1998) and Wei et.al. (2017)

use indicators to measure green advertising

scepticism; 1) aspects of green advertising

objectives; 2), consumer confidence in green

advertising content; 3) honesty in green advertising

(Mohr, 1998; Wei et al., 2017). Chen (2010) defines

green trust as a consumer's desire to depend on an

object based on beliefs or expectations resulting

from its credibility, virtue and environmental

performance. Nuttavuthisit and Thøgersen (2017)

identify consumer trust (green trust) as different

factors of willingness that influence the likelihood

that consumers will act with green intention and

strongly emphasize the need to manage consumer

confidence as a prerequisite for market development

for green products.

Liang, Choi and Joppe (2018) mentioned that the

indicator of trust, among others; 1) the company is

trustworthy, 2) the company gives the impression

that it makes promises and commitments, 3) the

company has the interest to be trusted, 4) keep

promises and 5) the company wants to be known as

a company that wants to keep promises and

commitments. Chen (2010) further put forward his

research proposing a new concept of green

satisfaction (green satisfaction). Liang, Choi and

Joppe (2018) define green satisfaction as a

satisfactory level of satisfaction of consumption to

satisfy customers' environmental desires, sustainable

expectations, and green needs. The indicator of

green satisfaction, among others; 1) the consumer is

happy, 2) the consumer is satisfied with his decision

to buy green products, 3) the consumer feels

contribute to the environment, 4) the consensus is

satisfied with the environmental awareness, and 5)

the consumer is satisfied with the environmental

performance (Chen, 2012).

Green purchase intention in general can be

interpreted as the behaviour and desire to buy

environmentally friendly products (Deepak and

Kant, 2018). Some important indicators of green

purchase intention according to Chen, Chen and

Tung (2018), among others; 1) the desire to buy

green product in the future, 2) the desire to consume

in the future because the green product gives less

pollution impact, 3) the consumer will give

recommendation to other party to use green product,

and 4) the green product is chosen also because the

government recommendation.

Based on the theoretical basis above, the frame

of thinking in this study are as follows:

Figure 1: Conceptual Framework.

Further hypothesis in this research is as

follows:There is a positive relationship between

Effect of Green Product, Green Packaging, Green Advertising on Green Purchase Intention through Intervening Variables Green Satisfaction

and Green Trust of Employee at the Directors Ofﬁce of PTPN II

247

green product (X1), green advertising (X2) and

green packaging (X3) variables directly affecting

green purchase intention (Z) of employee The

Directors Office of PTPN II.

a. There is a positive relationship between green

satisfaction (Y1) and green trust (Y2) variables

as intervening variable affecting green purchase

intention (Z) of employee The Directors Office

of PTPN II.

b. There is a positive relationship between green

satisfaction (Y1) and green trust (Y2) as

intervening variable on green product (X1),

green advertising (X2) and green packaging (X3)

variables in influencing the green purchase

intention (Z) of employee The Directors Office

of PTPN II.

3 RESEARCH METHODS

This research was conducted to the employees of the

PTPN II Office Directors of Tanjung Morawa on

May 1, 2018 until August 1, 2018 with the number

of samples of 100 people using the technique of

sampling non-probability sampling by random

sampling. Methods of data collection through

questionnaires containing questions/ tatements using

Likert Scale. The data obtained from the

questionnaire is then analyzed by using the Path

Analysis statistical modeling technique. This model

is to know the direct and indirect effect of a set of

independent variables (exogenous) on endogenous

varabel (Sani, 2013). This analysis is processed with

software AMOS Version 22. Preparation of the

research flow diagram as follows :

1. Path Analysis Diagram without intervening

variable

Figure 2: GPI without Intervening Variables.

2. Path Analysis Diagram with intervening variable

Figure 3: GPI with Intervening Variables.

4 RESULT AND DISCUSSION

4.1 Green Purchase Intention Model

without Intervening Variables

Based on Figure 2, it can be known that Green

Pridyct (X1) variable affect Green Purchase

Intention (Z) as much as 0,144, Green Packaging

(X2) affect Green Purchase Intention (Z) as much as

0,270 and Green Advertising (X3) affect Green

Purchase Intention (Z) as much as 0,430 and R

square value (R2) as much as 0,530.

Table 1: Regression Weight Without Variabel Intervening

Thus, the equation is as follows :

Z = 0,144*X

+ 0,270*X

+ 0,430 X

+ e (1)

From the three variables, there is one variable

that does not significantly affect Green Purchase

Intention (Z) ie Green Product (X

) variable, while

two other variables Green Packaging (X

) and Green

Advertising (X

) statistically significantly influence

Green Purchase Intention (Z). Among the three

variables, the greatest effect on Green Purchase

Intention (Z) is Green Advertising variable (X

Estimate S.E. C.R. P Label

z <--- x2 0,27 0,1 2,882 0,004

z <--- x1 0,144 0,103 1,404 0,16

z <--- x3 0,43 0,096 2,345 ***

ICNRSD 2018 - International Conference on Natural Resources and Sustainable Development

248

4.2 Green Purchase Intention Model

with Intervening Variables

Based on the results of data estimation using Amos

software, the results as presented in Figure 2. Based

on the figure, it is known that all endogenous and

exogenous variables used choose a positive effect on

the dependent variable, Green Purchase Intention

(Z). Besides this model is relatively better than the

model without the moderating variable marked by

increasing R2 value to 0.570 and all variables

statistically significant at α = 0.05.

The Green Product variable (X1) affects Green

Satisfaction (Y1) of 0.274, affects Green Trust (Y2)

of 0.119 and affects Green Purchase Intention (Z) of

0.055. The Green Packaging variable (X2) affects

Green Satisfaction (Y1) of 0.252, affects the Green

Trust (Y2) of 0.248 and affects Green Purchase

Intention (Z) of 0.199. The Green Advertising

variable (X3) affects Green Satisfaction (Y1) of

0.254, affects Green Trust (Y2) of 0.144 and affects

Green Purchase Intention (Z) of 0.331. The Green

Satisfaction (Y1) variable has an influence on Green

Purchase Intention (Z) of 0.302. The Green Trust

variable (Y2) has an influence on Green Purchase

Intention (Z) of 0.051.

Table 2: Regression Weight With Variable Intervening.

Estimate S.E. C.R. P Label

y2 <--- x3 0,144 0,085 1,692 0,042

y1 <--- x1 0,274 0,1 2,736 0,006

y2 <--- x1 0,119 0,091 1,306 0,041

y1 <--- x3 0,254 0,093 2,723 0,006

y1 <--- x2 0,252 0,098 2,585 0,01

y2 <--- x2 0,248 0,089 2,783 0,005

z <--- y1 0,302 0,098 3,09 0,002

z <--- x2 0,199 0,102 1,962 0,05

z <--- y2 0,051 0,107 0,475 0,035

z <--- x1 0,055 0,102 0,541 0,048

z <--- x3 0,331 0,095 3,473 ***

Thus, we can construct the structural equation of

the model as follows:

= 0,274*X

+0,252*X

+0,254*X

+e (2)

= 0,119*X

+0,248*X

+0,144*X

+e (3)

Z = 0,055*X

+0,199*X

+0,331*X

0,302*Y

+0,051*Y

(4)

Based on the path diagram resulting from data

processing using the Amos program, it can be done

to form the equation and estimation. After

estimation and equation are formed, the Goodness of

Fit Test (suitability of the model) and hypothesis

testing are conducted. The testing of the Goodness

of Fit Test is based on the criteria below:

Tabel 3: Test Goodness of Fit.

Indicato

Criteria Result Conclusion

Chi

uare

Smaller is better 12,113 Good

Probabili

> 0,05 0,071 Good

Cmin/df <2.0 atau <5.0 2,113 Goo

RMSEA

.05≤RMSEA≤.0

0,065 Good

TLI 0,80≤GFI≤1 0,893 Marginal

CFI 0,80≤GFI≤1 0,963 Goo

NFI 0,80≤GFI≤1 0,833 Mar

inal

GFI 0,80≤GFI≤1 0,963 Goo

AGFI 0,80≤GFI≤1 0,824 Marginal

Based on Table 3. aboved, the overall equation

model of path analysis used can be accepted and

hypothesis testing can be continued. Furthermore,

hypothesis testing is done by analyzing the

significance of regression weight.

Table 4: Direct, Indirect and Total Effect.

Direct

Effects

Indirect Effects Total Effect

Green

Product 

Green

Purchase

Intention =

0,352

Green Product 

Green Satisfaction 

Green Purchase

Intention

(0,275 x 0,283 =

0,778

)

0,352 + 0,778

= 1,130

Green Product 

Green Trust  Green

Purchase Intention

(0,150 x 0,038 =

0,006)

Total

0,352 + 0,006

= 0,358

1,130+0,358

= 1,448

Green

Packaging

 Green

Purchase

Intention =

0,185

Green Packaging 

Green Satisfaction 

Green Purchase

Intention

(0,250 x 0,283 =

0,072

)

0,185 + 0,072

= 0,257

Green Packaging 

Green Trust  Green

Purchase Intention

(0,308 x 0,038 =

0,012)

Total

0,185 + 0,012

= 0,192

0,257 +

0,192= 0,449

Effect of Green Product, Green Packaging, Green Advertising on Green Purchase Intention through Intervening Variables Green Satisfaction

and Green Trust of Employee at the Directors Ofﬁce of PTPN II

249

Green

Advertising

 Green

Purchase

Intention =

0,340

Green Advertising 

Green Satisfaction 

Green Purchase

Intention

(0,279 x 0,283 =

0,079

)

0,340 + 0,079

= 0,419

Green Advertising 

Green Trust  Green

Purchase Intention

(0,198 x 0,038 =

0,008)

Total

0,340 + 0,008

= 0,348

0,419 + 0,348

=0,767

The total effect of the Green Product on Green

Purchase Intention with an intervening Green

Satisfaction variable of 1.130 and significant. This

can interpret if the Green Product is increased by

1%, then through the intervening Green Satisfaction

variable in total it will increase Green Purchase

Intention by 113%.

The total effect of the Green Product on Green

Purchase Intention with the intervening Green Trust

variable is 0.358 and significant. This can interpret if

the Green Product is increased by 1%, then through

the intervening Green Trust variable in total it will

increase Green Purchase Intention by 35.8%.

The total effect of Green Packaging on Green

Purchase Intention with the Green Satisfaction

variable is 0.257 and significant. This can interpret if

the Green Product is increased by 1%, then through

the intervening Green Satisfaction variable in total it

will increase Green Purchase Intention by 25.7%.

The total effect of Green Packaging on Green

Purchase Intention with the intervening Green Trust

variable is 0.192 and significant. This can interpret if

the Green Product is increased by 1%, then through

the intervening Green Trust variable in total it will

increase Green Purchase Intention by 19.2%.

The total effect of Green Advertising on Green

Purchase Intention with the Intervening Green

Satisfaction variable of 0.419 and significant. This

can be interpreted if Green Advertising is increased

by 1%, and through the intervening Green

Satisfaction variable in total, Green Purchase

Intention will increase by 41.9%.

The total effect of Green Advertising on Green

Purchase Intention with the Green Trust intervening

variable is 0.348 and significant. This can be

interpreted if Green Advertising is increased by 1%

so that through the intervening Green Trust variable

in total it will increase Green Purchase Intention by

34.8%.

5 CONCLUSIONS

The consumer purchase intention model is better

when using intervening variables, namely Green

Satisfaction (Y1) and Green Trust (Y2). For

business people, this indicates that the trend of using

environmentally friendly products increasingly

needs attention. The results of the study indicate that

there is a tendency that consumers are now

increasingly aware of the importance of the presence

of environmentally friendly products. Even

consumers have a preference for more

environmentally friendly products.

All variables studied had a significant effect on

alpha level = 5% on Green Purchase Intention (Z).

The variables that have the greatest direct influence

are the Green Product variable (X1) which is equal

to 35.2%, followed by the Green Advertising

variable (X3) of 34% and the Green Packaging

variable (Y1) of 18.5%.

Compared with the estimation results by using

direct influence without intervening, the estimation

results using the intervening variables Green

Satisfaction (Y1) and Green Trust (Y2) are far

better, marked by increasing significance values and

R2 values.

Based on the total direct and indirect influence,

the greatest influence on the Green Purchase

Intention (Z) variable is the Green Product variable

(X1) with a number of 1,488. The second biggest

influence is the variable Green Advertising (X3)

with the number 0.767 and the smallest influence is

the variable Green Packaging (X2) with the amount

of 0.449.

The suggestions that can be given include:

Companies should develop more green products

(environmentally friendly products) because

currently there is an increasing trend in the use and

demand for environmentally friendly products.

The concept of environmentally friendly

products is a concept that takes a long time in its

implementation, companies should start directing

their production orientation in a direction that is

more environmentally friendly, not necessarily green

overall, but can begin with small and simple things.

Because the slightest effort to produce

environmentally friendly products is a worthy effort.

Other researchers should be able to follow up on this

research by adding other aspects or other variables

that are more recent and able to represent the

complexity of the consumer purchase intention

model, especially related to green products.

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250

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Effect of Green Product, Green Packaging, Green Advertising on Green Purchase Intention through Intervening Variables Green Satisfaction

and Green Trust of Employee at the Directors Ofﬁce of PTPN II

251