The Integrated Model of Green Loyalty: Evidence From Eco-friendly Plastic Products
Mohamad Reza Pahlevi , Dwi Suhartanto
The rise of pollution due to massive use of plastic products has increased public awareness in environmental protection through the increased consumption of eco-friendly plastic products. However, as its cost of production is expensive, the consumption of eco-friendly plastic product is low. In this business environment, understanding and developing a strategy to create customer loyalty is a key factor to ensure business success. Driven by this research gap, this study is intended to gain a comprehensive understanding of loyalty formation towards eco-friendly plastic products by integrating the trust and perceived risk in the loyalty model. This study used data collected through the distribution of questionnaires to 400 consumers of eco-friendly plastic products in Bandung, Indonesia. This research used partial least squares structural equation modelling to examine the hypotheses proposed. The results note that the integration of green trust and green perceived risk in the Quality-Loyalty Model can increase the prediction of loyalty towards eco-friendly plastic products. Further, this research reveals that green perceived quality and green perceived value are the main drivers of loyalty towards eco-friendly plastic product. The identified relationships between the variables provide a guide for eco-friendly business players to enhance their innovative and competitive capabilities as well as encourage them to face the environmental challenges.