Determinant Purchase Intention for Organic Products
DOI:
https://doi.org/10.47747/fmiic.v1i3.3557Abstract
Technological developments have changed consumer purchasing behavior, especially among generations Y and Z. Generations Y and Z are the largest users of social media. Social media is one of the factors influencing generations Y and Z in making purchases. On the other hand, there is a development of environmentally friendly and nonenvironmentally friendly products. Consumers have choices in purchasing products. Currently, companies are increasingly encouraged to produce environmentally friendly products. Environmentally friendly products have consequences on higher prices. The purpose of this study is to examine the purchasing behavior of generations Y and Z on environmentally friendly products. The research was conducted quantitatively. The research objects were generations Y and Z, especially those who are familiar with environmentally friendly products, especially organic products. Sampling was conducted using nonprobability purposive sampling. All instruments and variables were tested for validity and reliability. Validity, reliability, and hypothesis testing were performed using PLS–SEM. The test results showed validity and reliability for all instruments and variables used in the study. Hypothesis testing showed that price, sales promotion, and WOM influenced purchase intention for organic products. Meanwhile, product quality did not influence purchase intention. In addition, gender strengthened the influence between price and sales promotion on purchase intention, whereas product quality and WOM were not significant. Recent research suggests that sales promotion is more important for organic products among generations Y and Z than for others. Product quality is not a factor influencing purchase intention for organic products.
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