Green Marketing

The American Marketing Association introduced the concept of environmentally friendly marketing in 1975 at a workshop on “Ecological Marketing.” Hennion and Kinnear (1976) proposed the idea of green marketing, which is defined as “concern for all marketing activities that give rise to environmental issues and can provide solutions to such environmental problems” (Hendra, et al., 2023).

Consumer Behavior

According to Kotler and Keller (2016), consumer behavior is the study of how individuals, organizations, and groups act to purchase, select, and use products or services to satisfy customer needs and wants.

Theory of Consumption Values

The Theory of Consumption Values (TCV), developed by Sheth, et al. (1991) in their study Why We Buy What We Buy: A Theory of Consumption Values, defines consumption values as the consumer choices influenced by various underlying values that shape their decision to buy or use a product. These values independently affect consumer choices and contribute differently in various situations. This theory further provides insights, predicts, and supports the evaluation of consumer behavior and helps understand consumer product choices (Zaidi, et al., 2019).

Green purchase intention, according to Rashid (2009) in Amin and Tarun (2020), refers to the willingness, preference, and likelihood of customers to choose environmentally friendly and sustainable products. Chen et al. (2019) in the study by Song, Z. (2024) outlined four indicators of measuring green purchase intention: preference or tendency to choose a product based on eco-friendly labels, interest in seeking information about green products, desire to purchase based on commitment to the environment and sustainability, and willingness to influence others to choose eco-friendly products.

Functional value refers to the perceived utility value for consumers in making decisions that have practical impacts (Kamboj, S., et al., 2023). Kumalasari, H., et al. (2024) identified three indicators for measuring functional value: product quality, product performance, and price sensitivity. Meanwhile, Kamboj, S., et al. (2023) outlined four indicators for measuring the functional value of an environmentally friendly product: the green product is perceived as consistent in quality, believed to be made from environmentally friendly materials, meets the expected quality standards, and is reliable.

Conditional value is the perceived utility obtained from an alternative due to certain situations or conditions faced by customers when making a purchase decision. Religia, Y. (2023) explained four indicators for measuring conditional value towards purchase intention: product availability, promotional offers and discounts, additional benefits received, and ease of finding a product.

Environmental value generally refers to principles and perceptions that underlie human behavior to maintain environmental balance and sustainability, or in other words, can be interpreted as consumer concern for the environment. In their study, Song, Z., et al. (2024) identified four indicators for consumers in choosing a product based on environmental value: reducing the impact of climate change, reducing carbon emissions, reducing environmental pollution levels, and using resources efficiently and sustainably.

Wibowo, Andri, et al. (2022) define green trust as consumer confidence in using goods or services believed to have a positive impact on the environment. In short, green trust is the belief in the environmental performance of a company’s products. Wibowo, Andri, et al. (2022) identified four measurable indicators of green trust: the company’s environmental commitment is reliable, the company’s reputation is trustworthy, the company’s products are believed to be environmentally friendly, and the company’s performance is accountable.

1. Convergent Validity

Source: Primary data processed by researchers, 2025

As shown in the table below, the convergent validity test results – average variance extracted – show that the Average Variance Extracted (AVE) for each variable has a value >0.5, indicating validity and meeting the criteria in the convergent validity test.

Source: Primary data processed by researchers, 2025

To determine discriminant validity using the Fornell-Larcker criteria, the square root of the AVE of each construct must exceed the correlation value with other constructs in the framework (Fornell & Larcker, 1981).

Source: Primary data processed by researchers, 2025

Based on the test results for the green trust variable, the square root of the AVE was 0.810, which is higher than the correlation values for other constructs, such as functional value (0.522), conditional value (0.495), environmental value (0.516), and green purchase intention (0.732). This indicates that the correlation value for this construct is higher than the other constructs, thus concluding that the Fornell-Larcker discriminant validity is good.

Reliability testing can be conducted using the Cronbach's alpha and composite reliability methods. A Cronbach's alpha coefficient >0.7 indicates that the question is considered reliable, and therefore the construct or variable is also considered reliable. However, if the Cronbach's alpha coefficient is <0.7, the question is considered invalid (Ghozali, 2014).

Source: Primary data processed by researchers, 2025

Based on the results of the R-square determination coefficient test for the green trust variable, which is 0.446 with an adjusted R-square value of 0.429, it can be explained that all independent variables (functional value, conditional value, and environmental value) simultaneously influence and fall into the moderate category.

Meanwhile, the R-square determination coefficient for the green purchase intention variable is 0.723 with an adjusted R-square value of 0.711. Therefore, the influence of the independent variables on green trust falls into the high category.

Ghozali & Latan (2015) in Sahda, N. N et al. (2024) explain that to determine the goodness-of-fit of the model or the relative impact of the influencing variables, the F-square test is used. The expected results in this model are at least 0.15 which is quite good (moderate). The F-Square value criteria are 0.02 which has a small (low) influence, 0.15 which has a fairly good (moderate) influence and 0.35 which has a large (high) influence at the structural level.

Table 4.20. Results (F-Square) Effect Size

Source: Primary data processed by researchers, 2025 (Q-Square) Predictive Relevance

Ghozali & Latan (2015) in Sahda, Sahda, N. N et al. (2024) explain that the Q-Square test is used to assess predictive relevance and conduct t-tests to determine the significance of parameter coefficients in structural paths. A Q- Square value greater than 0 (zero) indicates that the model has predictive relevance, while a Q-Square value less than 0 (zero) indicates that the model does not have adequate predictive relevance.

Table 4.21. Results (Q-Square) Predictive Relevance

Source: Primary data processed by researchers, 2025

Based on the results of the Predictive Relevance (Q-Square) test above, the Q2 values are 0.391 and 0.624. These results indicate that the Q2 value is greater than 0 in the model, thus having adequate predictive relevance.

The criteria for testing a hypothesis can be determined through the path coefficient, taking into account the t-statistic results. Ghozali & Latan (2015) in a study by Dewi et al. (2022) explained that if the t-statistic is greater than 1.96 with a p-value <0.05 or an alpha of 5%, the hypothesis is accepted, and the variable's influence is declared significant. Conversely, if the t-statistic is less than 1.96 with a p-value >0.05 or an alpha of 5%, the hypothesis is rejected, and the variable's influence is declared weak or insignificant. The results of the path coefficient analysis applied in the hypothesis testing in this study can be seen in the following table:

Source: Primary data processed by researchers, 2025

Source: Primary data processed by researchers, 2025

As shown by the statistical calculations in the table above, the following conclusions can be drawn:

Based on the results of the first hypothesis (H1) test, this hypothesis is accepted, consistent with the findings of Amin, S. & Tarun, Md T. (2020) and Muhtadi, M. Adlan (2022), which state that green trust is positively and significantly influenced by functional value. Lin & Huang (2012) in Zaidi et al. (2019) explain that functional value depends on product performance, taking into account the cost–benefit ratio and the expected quality.

This research aligns with several previous studies, indicating that customers’ trust in environmentally friendly products is influenced by the functionality of the offered product. This means customers believe that RON 95 provides significant benefits based on quality, reliability, price sensitivity, and the consistency of the product offered.

The second hypothesis (H2) test results show that the hypothesis is accepted, meaning that conditional value has a positive and significant effect on environmentally related trust. The conceptual framework described in Hudayah, S. et al. (2023) states that conditional value is part of green perceived value, contributing to the formation of consumers’ assessment of an environmentally friendly product.

In this study, conditional value is able to create contexts that strengthen RON 95 customers’ perceptions when internal or external conditions support and align with sustainability principles. This, in turn, builds customer trust in RON 95 products based on indicators such as availability, convenience, added value, or benefits that match the situation faced by customers—leading them to believe that the product is genuinely environmentally friendly.

The results of the third hypothesis (H3) test indicate that the hypothesis is accepted, showing that environmental value—similar to the findings of Song, Z. et al. (2024)—is positively and significantly correlated with customer trust in environmentally friendly products. Environmental value refers to awareness of, concern for, and trust in environmental sustainability. As these principles become more established, RON 95 customers believe that their personal values align with the green claims made by the company’s products.

The results of the fourth hypothesis test (H4) in this study indicate that the hypothesis is accepted. This finding validates the research of Jain, P. & Kabira, A. (2022), Chi, T. et al. (2021), and Wang, L., Zhang, Q., & Wong, P.P.W. (2022), which show that functional value has a positive and significant effect on the intention to purchase both green products and conventional products. Based on these results, functional value, which directly influences green purchase intention, can be interpreted as vehicle users perceiving the quality, product consistency, reliability, and price offered for RON 95 fuel as proven to deliver good vehicle performance.

The results of the fifth hypothesis test (H5) in this study show that the hypothesis is accepted, aligning with the findings of Hudayah, S. et al. (2023), which explain that conditional value substantially has a positive and significant effect on the intention to purchase environmentally friendly products. Such purchase intention arises from favorable situations for customers. One such situation may be faster purchasing accessibility or added value such as more reward points for purchasing RON 95.

The results of the sixth hypothesis test (H6) indicate that the hypothesis is accepted. This is consistent with the findings of previous studies by Song, Z. et al. (2024), Tran (2022), and Farzin et al. (2022) in Kumalasari, H. et al. (2024), which state that environmental value has a positive effect on green purchase intention. This shows that each RON 95 customer in this study understands that the product is made from environmentally friendly materials and prioritizes environmental responsibility when trying, purchasing, or using RON 95 fuel for their vehicles. Although the price of the product is relatively higher compared to lower RON fuels, the tendency to purchase it remains high because it aligns with their personal values regarding sustainability.

The results of the seventh hypothesis test (H7) indicate that the hypothesis is accepted. This finding is consistent with the results of studies by Tao, Yi-Ten et al. (2022), Wang, H. (2019), and Syahputra, B.D. & Yenih, Y.H. (2021), which show that customers’ trust in green product claims positively and significantly supports the formation of intentions to purchase environmentally friendly products. Customers trust that RON 95, labeled as green and proven to be bioethanol-based, can reduce vehicle exhaust emissions while maintaining good environmental quality. This trust forms the perception that RON 95, as an eco- labeled product, truly contributes to the environment, thereby strengthening the intention to purchase it.

The results of the eighth hypothesis test (H8) show that the hypothesis is accepted, meaning that the influence of green trust can bridge customers’ functional evaluations and their green purchase intention. This is in line with the research of Chen & Chang (2013) in Keni, K. et al. (2020) and Amin, S. & Tarun, Md Touhiduzzaman (2020), which state that green trust serves as a positive and significant mediator between functional value and green purchase intention. In other words, RON 95 customers need to be convinced of the authenticity of the company’s green claims before forming the intention to purchase the product, even if the functions and benefits meet their expectations.

The results of the eighth hypothesis test (H8) show that the hypothesis is accepted, indicating that green trust mediates the effect of conditional value— derived from benefits relevant in specific circumstances—on customer intention to try, purchase, or use the product. This aligns with the studies of Keni, K. et al. (2020) and Chi, T. et al. (2021), which explain that green trust strengthens the link between certain conditions and green purchase intention. This shows that RON 95 customers’ trust and confidence act as a connecting factor, while still considering indicators such as availability, convenience, added value, and benefits provided by the company, thereby fostering confidence in deciding to purchase RON 95.

The results of the eighth hypothesis test (H8) indicate that the hypothesis is accepted, suggesting that every customer in this study holds principles and perceptions rooted in maintaining environmental balance and sustainability, supported by their trust in the company’s commitment, practices, and environmentally friendly values. This is consistent with the study by Chairy & Alam, M.E. Nur (2019), which explains that green trust positively and significantly mediates the relationship between environmental value and green purchase intention. In other words, when RON 95 customers believe that the company’s transparent and responsible conduct, along with its positive image, serve as benchmarks for upholding environmental sustainability, they become more confident in purchasing the product.

Based on the discussion of the influence of functional value on green trust in this study, it can be concluded that customers believe that the RON 95 product offered by the company is environmentally friendly, supported by an assessment of its beneficial use and ability to meet the practical needs of their vehicles.

The findings indicate that RON 95 customers’ perception of consumption value refers to both internal and external conditions. For example, when customers gain additional value from purchasing the product, they become more receptive to the company’s green claims.

It can be concluded that RON 95 customers believe the company’s products have a positive impact on the environment and align with their personal values in actively reducing emissions from vehicle combustion.

Customers strongly consider performance and efficiency aspects of vehicle engines, motivating them to choose more environmentally friendly fuels like RON 95.

Customers are more likely to intend to purchase green fuel when in favorable conditions, such as the product’s availability at several gas stations in Jakarta and the time efficiency gained during purchase.

When customers have a good understanding of and willingness to contribute to environmental protection, environmentally friendly products are more easily accepted and motivate purchase intention.

When customers believe in the company’s commitment beyond profit- making—specifically its environmental impact mitigation—green purchase intention is strengthened.

Even if customers are satisfied with the product’s functionality and performance, purchase intention arises when they also believe in the authenticity of the company’s environmental claims.

Favorable purchase conditions alone are not enough to motivate customers— trust in the company’s environmental commitment strengthens the influence of such conditions on green purchase intention.

Customers’ purchase intention for RON 95 is formed when their environmental assessments align with the company’s responsible practices and commitment to building trust.

Customer assessments of the functional aspects of fuel use can serve as a company reference point. Competitive pricing strategies should be implemented, while continuously communicating the reliability and efficiency of RON 95. This can be done through collaborations with automotive influencers to create social

media content comparing standard fuel with RON 95, showing its superior performance and fuel efficiency.

The company should focus on added value and direct benefits for customers, such as offering fuel rewards, eco-friendly merchandise for purchases above a certain threshold, and expanding the distribution network to improve accessibility.

The company can strengthen environmental awareness through campaigns such as “1 Liter for the Future”, highlighting that each purchase of RON 95 contributes to carbon emission reduction. Educational advertisements on the environmental benefits of RON 95 should also be placed on various digital platforms.

Transparency should be emphasized by displaying test results on fuel pumps and consistently sharing information about the eco-friendly ingredients used in RON 95 on social media. Providing stickers labeled “Eco-Friendly Vehicle” to customers can further reinforce trust.

To boost purchase intention, the company should maintain a responsive brand image, provide direct customer benefits, and launch engaging educational campaigns, such as SPBU-installed QR codes containing 4D visual content about RON 95.