Email: ijbe.
feubb@gmail.
http://ojs.
ijbe-research.
com/index.
php/IJBE/index The Influence of Green Marketing.
Consumer Knowledge and Purchasing Power on Environmental Attitudes Ahmad Maulanaa*.
Nehemia Indrajayaa.
Nurkardina Novaliab Universitas Sriwijaya Universitas PGRI Palembang maulana25@unsri.
Abstract Global changes in the modern industrial era encourage the importance of environmental sustainability, triggering the popularity of green marketing as a key strategy for companies to advertise sustainable goods.
In this dynamic, the level of consumer knowledge and purchasing power also are essential in influencing consumer preferences and choices regarding sustainable products.
This study aims to understand the influence of green marketing, consumer knowledge, and purchasing power on environmental attitude in Indonesia, particularly in the Southern Sumatra region.
The gathered data of 118 participants were examined through the partial least squares structural equation modeling (PLS-SEM) method to evaluate the proposed hypotheses.
The findings revealed that green marketing and purchasing power exert a direct and significant impact on environmental attitude, suggesting that marketing efforts and financial capability play a key role in shaping consumer perceptions of sustainability.
In contrast, consumer knowledge does not have a significant direct effect on environmental attitude, indicating that awareness alone may not be sufficient to drive environmentally responsible behavior.
These findings contribute to the understanding of factors influencing consumers' environmental attitudes, provide strategic direction for companies aiming to enhance green product adoption, and stimulate further discussion on sustainability practices in Southern Sumatra.
Article Info
A Received : 14th May 2025
A Revised : 19th August 2025
A Published : 28th August 2025
A Pages : 428-440
A DOI
: http://dx.
org/10.
33019/ijbe.
A JEL
: D10.
M31
A Keywords : Environmental Attitude.
Green Marketing.
Consumer Knowledge.
Purchasing Power This work is licensed under a Creative Commons Attribution 4.
0 International License.
Introduction The global changes occurring in the era of modern industry and technology have significantly impacted the environment, posing serious challenges to the sustainability of Earth's Unsustainable consumption and production have led to various environmental problems, including air and water pollution, deforestation, and global warming (Arora & Mishra, 2.
In facing these challenges, environmental sustainability becomes the primary focus, and attention to efforts to reduce negative impacts is becoming increasingly urgent.
this context, green marketing emerges as an increasingly important and popular strategy among companies.
Green marketing aims to promote environmentally friendly products and business practices, creating a new paradigm in the marketing world that is more oriented towards sustainability (Reddy et al.
, 2.
Green marketing strategies enhance resource management effectiveness, elevate corporate image, and increase business profitability.
This strategy not only reflects corporate social responsibility but also creates opportunities to influence consumer behavior to be more environmentally conscious.
Currently, consumer understanding of environmental issues also has a vital impact on influencing their different ways of thinking and acting toward products and services.
Consumer knowledge about the environmental impacts of the products they purchase can serve as a driver in choosing more sustainable products (Yue.
Sheng.
She, & Xu, 2.
Therefore, it is important to delve deeper into the relationship between green marketing, consumer knowledge levels, and their impact on environmental attitudes.
Additionally, consumer purchasing power although consumers are aware of environmental issues and possess knowledge about them, it also plays a crucial role in the decision-making process, their financial ability to choose more sustainable products also plays a determining factor.
The importance of this research becomes increasingly evident considering that Southern Sumatra has significant potential in the manufacturing industry, which can play a strategic role in reducing negative environmental impacts.
By understanding the complexity of interactions between green marketing, consumer knowledge, and purchasing power, this study seeks to enhance comprehension of how companies and consumers can play a role in supporting environmental sustainability amidst the dynamics of modern industrial and technological development.
With the global changes in the era of modern industry and technology significantly impacting the environment, the sustainability of Earth's ecosystems has become a primary focus in addressing environmental issues.
Green marketing, as a strategy emerging among companies, emphasizes the promotion of sustainable products and eco-conscious business practices, playing a crucial role in these sustainability efforts.
This research aims to understand the complex interaction between green marketing, consumer knowledge levels, and purchasing power, with South Sumatra as the background.
Through a deeper understanding of these factors, this research seeks to contribute to company strategies and consumer support for environmental sustainability amidst the development of modern industry and technology.
The structure of paper is followed by literature review, methodology, results and discussion, finally conclusion.
This work is licensed under a Creative Commons Attribution 4.
0 International License Literature Review Environmental attitudes have a central role in consumer decision-making, being the main focus in this study.
(Mowen & Minor.
, 2.
describe that the formation of environmental attitudes involves a complex interaction between consumer beliefs, attitudes, and behaviors.
(Hoang Yen & Hoang, 2.
added the affection dimension as a direct measure of consumer attitudes, which can be reflected in the satisfaction encountered in purchasing green products.
The purchase of green products, which involves consumers' availability to pay more, signifies consumers' trust in environmentally friendly product attributes (Berger, 2.
Furthermore, this trust creates a positive image attached to the product chosen by the consumer.
When a pro-environmental attitude is formed, consumers show more environmental concern in fulfilling their needs for goods and services.
Green marketing is a very relevant marketing strategy in changing consumer behavior to be more concerned about the environment.
Green marketing involves aligning all efforts in designing services and facilities to fulfill human needs and desires while ensuring no harm to the natural environment (Ottmn, 2.
From the above definition, it can be inferred that green marketing is a marketing activity that consistently provides services and facilities for the satisfaction of human needs and desires but does not have an impact on the environment and nature.
There are several dimensions used to measure green marketing variables, including green product, green price, green promotion, and green place (Janah & Nugroho.
Lestari.
Nursanta.
Masitoh, & Gunadarma, 2023.
Rosyada & Dwijayanti, 2023.
Sofwan & Wijayangka, 2.
Then, (Kotler & Keller, 2.
highlighted the role of green marketing in creating environmental awareness and encouraging the adoption of environmentally friendly behavior.
Previous research reveals that consumers' exposure to green marketing can strengthen their positive attitudes towards environmental issues.
Consumer knowledge is a key factor in shaping environmental attitudes.
The idea that knowledge influences an individual's attitude and behavior aligns with Fishbein and Ajzen's Theory of Reasoned Action .
They suggest that a person's beliefs, which relate to the concept of knowledge, can be considered as revisable knowledge (Moses & Shoham, 1.
serve as the basis for a person's attitude.
Attitude, in turn, influences one's purchasing decisions (Hill.
Fishbein, & Ajzen, 1.
Lee .
in his research defines consumer knowledge about the environment as a person's basic knowledge regarding the actions they can take to contribute to environmental protection.
There are three dimensions that make up consumer knowledge about the environment, including knowledge of environmental issues (Zulfa.
Max.
Hukum, & Ilyas, 2.
, knowledge of the negative impacts of environmental issues (Behera & Panda, 2.
, and awareness of the benefits of using green products (Fibula Purnama.
I Made Putrawan, & Diana Vivanti Sigit, 2.
(Peattie, 1.
emphasizes that consumers' level of knowledge about environmental issues can affect their understanding and appreciation of sustainable business practices.
Consumers with more in-depth knowledge of the environmental impact of products or esrvices generally exhibit a more favorable outlook environmentally responsible business practices.
This work is licensed under a Creative Commons Attribution 4.
0 International License Purchasing power denotes a consumer's capacity to buy a certain amount of goods demanded in a specific market, at a set price, based on their income.
High purchasing power indicates the level of consumer satisfaction when they decide to buy a product.
This study uses several dimensions that refer to several previous studies to form purchasing power variables, namely income, price and optimism (P.
Pomantow.
Tumbuan, & R.
Loindong, 2019.
Pramutoko.
Sobari.
Saeful Zaman, & Rahmatunnisa, 2.
This consumer purchasing power also has a significant role in shaping environmental attitudes.
According to (Shrum.
McCarty, & Lowrey, 1.
, consumers with higher purchasing power are better able to choose environmentally friendly products and services.
Their ability to access products with green labels or environmental certifications can reinforce positive attitudes towards sustainable business practices.
Previous studies suggest that the interaction between green marketing, consumer knowledge and purchasing power can have a synergistic impact on the formation of environmental Consumers with high knowledge are more inclined to react positively to green marketing campaigns and choose environmentally friendly products, especially if they have sufficient purchasing power.
Therefore, an in-depth understanding of the complex interactions of these three factors is key for companies to design effective and sustainable marketing strategies.
Research Methods This study utilizes secondary data sources, including the Central Bureau of Statistics, the Ministry of Energy and Mineral Resources.
PT PLN (Perser.
, and other scientific publications, alongside primary data obtained through questionnaires.
The research sample comprises five provincial capitals in Southern Sumatra: Pangkal Pinang.
Bengkulu.
Jambi.
Bandar Lampung, and Palembang consist of 118 participants.
These locations were selected as they meet the criteria for large and medium manufacturing industries utilizing green energy products and serve as central hubs in their respective provinces.
The respondents consist of two owners or managers from each company within the large and medium manufacturing sector.
This data will be analyzed to determine the impact of green marketing, consumer knowledge, and purchasing power on environmental attitudes within this industry in Southern Sumatra.
Indonesia.
The study's variables include an endogenous variableAi environmental attitudeAiwhich examines perspectives on green product usage, information about green products, and concerns about environmental issues.
The exogenous variables are categorized into three: green marketing, consumer knowledge, and purchasing power.
Collected data will be examined through PLS-SEM, a statistical method for assessing causal relationships between variables.
This analysis consists of consists of two phases: evaluation of the measurement model and structural model analysis.
the measurement model evaluation involves assessing internal consistency, convergent validity, and discriminant validity.
Once this step is completed, the structural model evaluation follows, including coefficient of determination analysis and path diagram analysis.
PLS-SEM is implemented in this study due to its nonparametric approach in evaluating latent constructs within a path model using This work is licensed under a Creative Commons Attribution 4.
0 International License multivariate techniques.
This method is chosen because the research has an exploratory nature and requires analyzing complex mediation paths.
Based on the study's purpose and proposed explanations equations are presented as equations 1 and 2.
yaya = yu yuyaycA yuyaya yuycEycE yuA Results and Discussion This section presents the findings from the initial testing phase, which assesses the reliability of constructs in representing the research model.
This phase, known as the measurement model evaluation, includes tests for convergent validity, construct reliability, and discriminant validity.
Convergent validity is determined using Outer Loading (OL > 0.
and Average Variance Extracted (AVE > 0.
, while construct reliability or internal consistency is evaluated through Cronbach's Alpha ( > 0.
and Composite Reliability (CR > 0.
Table 1 shows, the values for outer loading.
AVE.
CR, and Cronbach's Alpha are presented obtained which have met the benchmarks for internal consistency and convergent validity So that we can conduct discriminant validity testing to confirm that distinct latent variables remain separate and do not exhibit overly strong correlations, allowing us to reliably distinguish between constructs using Cross Loading (L > Lother.
and Fornell Larcker Criteria (OoAVE Yi > Correlation Yi,Y.
Table 1.
Validity and Reliability Measurement Results for All Constructs Source: Research results, processed, 2023 This work is licensed under a Creative Commons Attribution 4.
0 International License In Table 2, there are the results of the discriminant validity test which consists of two metrics, namely cross loading and the Fornell Lacker criterion.
The outer loading values in each designated construct are higher than those in other constructs .
hown in parenthese.
, indicating that the discriminant validity of the SEM-PLS model is satisfied.
Table 2.
Results of Discriminant Validity Testing Source: Research results, processed, 2023 This work is licensed under a Creative Commons Attribution 4.
0 International License Similarly, the Fornell-Larcker criterion results demonstrate that the OoAVE value of each construct exceeds the correlation values between different constructs, further confirming the modelAos discriminant validity.
Consequently, the analysis can proceed to the structural model After meeting the requirements for convergent validity, construct reliability, and discriminant validity tests, the scholar advanced to the structural model evaluation stage, which includes analyzing the coefficient of determination and testing hypotheses based on the path coefficientAos magnitude, significance, and resulting equation.
EA = 0.
536 GM Ae 0.
141 CK 0.
229 PP e According to the aforementioned equation, it is evident that the coefficient of determination obtained in this research model is 0.
480, indicating the variation within the endogenous construct Environmental Attitude (Y) can be moderately explained by the antecedent constructs of green marketing (X.
consumer knowledge (X.
and purchasing power (X.
simultaneously is 48.
0% and the remaining 52.
0% is impacted by other constructs not accounted for, which are reflected in structural error.
The above equation is also summarized in table 3 which shows the estimation results and probability of path relationships between Table 3.
Path Relationship Between Constructs Source: Research results, processed, 2023 Based on table 3, there is a substantial immediate impact of green marketing (X.
on environmental attitude (Y) of 0.
The amplified the green marketing is applied, the higher the environmental attitude, conversely the lower the application of green marketing, the lower the environmental attitude.
There is also a effect significant of purchasing power on environmental attitude with a positive coefficient of 0.
More purchasing power increases, the more environmental attitude increases, conversely, if purchasing power is low, environmental attitude will also decrease.
Meanwhile, consumer knowledge was found to have no significant effect on environmental attitude with a negative coefficient of 0.
Discussions Outcomes confirm a notable as well as positive direct effect of Green Marketing and purchasing power on Environmental Attitude.
In other words, the more intensive and effective green marketing efforts are made, the stronger the influence on a positive attitude towards the environment .
nvironmental attitud.
In addition, green marketing in this study is evaluated through the aspects of green place, green product, green price, and green promotion so that based on the results obtained, each of these dimensions has a positive effect This work is licensed under a Creative Commons Attribution 4.
0 International License on environmental attitude.
Prove that green marketing is one of the things that is quite important for companies to do because of its role in influencing environmental attitude.
These findings support the conclusions of previous research, where Nekmahmud & Fekete-Farkas .
found that a significant positive effect of green marketing on environmental attitude.
In addition.
Suhaily .
states that green price, green place, green promotion will directly affect consumer attitudes.
This happens because consumers prefer to shop in strategic places with appropriate prices and some additional promotions such as discounts.
Then.
Cherian & Jacob .
in their study stated that green marketing is essential, along with a necessary shift in consumer behavior attitudes towards a more environmentally friendly lifestyle.
Because they found that most consumers still lack knowledge about green products and due to low awareness of green products, organizations still do not encourage the development of green products or work hard on green packaging.
The findings showing that purchasing power exerts a notable effect on environmental attitude support the findings of previous researchers.
Purchasing power in this study is described by indicators of income, price and optimism.
Yang.
Mohan, & Fukushi .
found age, personal income, family composition, and engagement in non-market activities generally shape respondents' perspectives.
However, this finding contradicts research Benedek & Takycs-Gyyrgy .
which states that place of residence and income are not related to decision factors using green products on environmental awareness.
Another study found that price tends to hinder green product purchasing decisions because it can reduce the intention to understand environmentally friendly values and attitudes in making purchasing decisions Omar.
Hashim .
The study of Cranfield.
Henson, & Holliday, 2010.
Eze & Ndubisi .
also show that consumers prefer green products at affordable prices, and the price factor has a greater influence than green product claims.
This optimism can lead to a stronger personal commitment to environmental preservation and intent to purchase eco-friendly Studies have shown that consumers' perceptions of green products are influenced by their attitudes, beliefs, and interest in buying green products Reddy et al.
, .
Meanwhile, the estimation results determined that consumer knowledge has no direct influence and environmental attitude.
In other words, this finding implies that changes in the level of consumer environmental attitude will not result in significant changes in individual attitudes towards environmental issues.
Other factors may have a more dominant influence in shaping environmental attitude and this can be important information in designing a more effective green marketing strategy or environmental awareness campaign.
This result contradicts the research results of Simanjuntak et al.
Syarief .
Zheng.
Xu.
Kong.
Deng, & Lin .
that consumer knowledge about the environment has a significant effect on consumer attitudes.
A deficiency in environmental awareness, cost considerations, perceived risks, corporate reputation, trust, and readiness to pay have been recognized as obstacles, leading to a disparity between consumers' attitudes and their actual purchasing behavior regarding green products (Sharma, 2.
However, it should be noted that consumer attitudes and behaviors may not always align, and knowledge can play a role in reshaping attitudes (Menozzi et al.
, 2.
This work is licensed under a Creative Commons Attribution 4.
0 International License Chen et al.
also revealed that environmental attitudes as a cognitive assessment of consumers whether a green product is dominantly influenced by literacy or knowledge of the green product.
This finding also contradicts Onel & Mukherjee .
study, which found that among the among the three types of knowledge analyzed, subjective knowledge had the greatest impact on pro-environmental behavior by influencing perceptions of environmental risk and willingness to pay for environmental causes sustainability.
In other words, individuals with stronger environmental values tend to purchase eco-friendly products, recycle, and engage in environmental protection efforts as they actively seek information and develop greater awareness .
r perceive themselves as knowledgeable, as reflected in subjective environmental knowledg.
about environmental issues (Malik & Singhal, 2.
Based on the research findings that show a direct and significant effect of green marketing and purchasing power on environmental attitude, it is recommended that the industry and government in Southern Sumatra take strategic steps.
The industry is expected to increase the effectiveness of green marketing by focusing on dimensions such as green place, green product, green price, and green promotion.
This can be done through targeted marketing campaigns and consumer education about sustainability.
In addition, companies need to consider the purchasing power factor by offering green energy products at affordable prices, and utilizing innovation in pricing and promotion strategies.
The government can support the transition to green energy products by providing fiscal incentives to industries that implement sustainable practices.
Increasing regulations and incentives that support the production and consumption of sustainable products can be a positive step.
In addition, public education approaches need to be strengthened, including training and environmental awareness programs, to increase knowledge and positive attitudes towards green energy.
Meanwhile, although consumer knowledge was not shown to directly influence environmental attitude in the context of this study, the government and educational institutions could design more intensive educational programs on environmental issues.
increasing environmental literacy, people people can better grasp the importance of using green energy products and how they benefit the environment.
This increased knowledge can support changes in consumer attitudes and behavior towards sustainable practices.
Conclusion and Suggestion Conclusion This research highlights valuable insights into how green marketing, consumer knowledge, and purchasing power impact environmental attitudes.
The assessment of the model verifies the constructs' reliability and validity convergent validity, construct reliability, and discriminant validity tests.
In assessing the structural model, the findings indicate that green marketing and purchasing power significantly influence environmental attitude, whereas consumer knowledge does not have a direct significant effect.
The coefficient of determination analysis evidence shows that the research model is able to 0% of the diversity of the endogenous Environmental Attitude construct, with the This work is licensed under a Creative Commons Attribution 4.
0 International License rest explained by other factors or structural errors.
In this context, the finding that green marketing and purchasing power have a positive bearing on environmental attitude provides important implications for companies and governments in developing marketing strategies that focus on sustainability and affordability.
However, the finding that consumer knowledge has no significant direct effect suggests that other factors may be more dominant in shaping environmental attitude.
Therefore, educational approaches and increasing consumer knowledge remain important, even if they do not directly influence environmental attitudes.
In the context of Southern Sumatra, where there is potential for a large manufacturing industry, these findings provide direction for companies to increase the effectiveness of green marketing, adjust product prices to consumer purchasing power, and continue to educate the public about sustainability.
The government may also take part by providing incentives and regulations that support sustainable practices Suggestion Future research should explore other factors influencing environmental attitudes beyond green marketing, consumer knowledge, and purchasing power.
Investigating psychological, social, and cultural aspects may provide deeper insights.
Additionally, longitudinal studies could examine changes in consumer behavior over time.
Expanding the research scope to other regions would enhance the generalizability of findings.
Lastly, qualitative approaches could complement quantitative methods to better understand consumer motivations and perceptions of sustainability.
References