“Factors influencing consumers’ willingness to pay more for green convenience goods in Indonesia”

Adopting a green lifestyle by living a healthy life has the consequence of purchasing more expensive green products. This study aimed to explore the factors affecting consumers’ willingness to pay more for green convenience products. This willingness can be influenced by consumers’ attitudes, green lifestyles, and purchase intention. The respondents were 225 individuals who had purchased green products from bulk stores in Bandung and Jakarta. The data were obtained through online surveys, specifically distributing G-form. The majority of respondents are women at 78.7% and 39.1% were aged between 26-35 years. Subsequently, the samples were collected using cluster random sampling, which included selecting groups or areas to be sampled, and the data were processed using SEM-LISREL. The results showed that green lifestyles influenced willingness to pay more for convenience goods, while attitudes were only indirectly influenced. The intention to make a purchase was a significant predictor of how much consumers were willing to pay more. The majority of respondents are willing to pay around 10-25% more for green products. Simultaneously, attitudes and green lifestyles had a significant influence, with purchase intention as a mediator. These results can be used to develop green convenience product marketing strategies at bulk stores in Indonesia by providing confidence in product attributes that encourage consumers to pay a premium price.


INTRODUCTION
In Indonesia, the concern of environmental sustainability has become a top priority regarding the high percentage of waste generated from households.According to Sistem Informasi Pengelolaan Sampah Nasional (SIPSN, 2022) (in English -National Waste Management Information System), food waste accounted for 40.5% and plastic waste reached 18.2%, while household waste was 39.4%.Waste consists of essential daily products, including food scraps and plastic materials from product packaging.In the current study, green products are perceived by consumers to be environmentally friendly due to the material used, specifically green packaging to reduce impact on the environment.Bulk stores in Indonesia are currently implementing a zero-waste concept.The products sold are green convenience derived from natural ingredients and not packaged in plastic.Moreover, there is a noticeable trend of people bringing personal bags when shopping.These stores sell food necessities, including vegetables, fruit, staple foods, processed healthy food, drinks, herbal medicine, kitchen spices, as well as organic detergents, and were established to encourage people to adopt waste-reducing lifestyles.Most bulk stores are located in Jakarta and Bandung.
Consumers in Indonesia generally acknowledge the significance of green products and claim to have a positive attitude towards the environment.However, they are unwilling to pay a premium price for such products, as they are often more expensive than conventional ones.Nevertheless, they believe that businesses should offer green products especially convenience goods at an affordable price, as it is reasonable to do so.Apart from that, lifestyles, such as preference for healthy products and environmental concerns significantly influence consumers' decisions to purchase green products.In Indonesia, individuals have adopted a way of life that focuses on using green products to reduce waste generated by plastic packaging.This approach can significantly increase demand for green products and influence consumer willingness to pay for them.
Green products often come with a higher price tag than conventional products, making it difficult for consumers to choose eco-friendly alternatives.Several factors may be the cause, such as lack of knowledge about the differences between green and conventional products, a lack of product benefits perceived by consumers, or consumer insensitivity to price.Facing this problem, bulk stores in Indonesia need to conduct further studies regarding the willingness to pay higher price for green convenience products in bulk stores in a comprehensive manner.

LITERATURE REVIEW AND HYPOTHESES
Studying consumer attitudes is crucial in understanding their behavior and decision-making process.Attitudes toward behavior refer to the extent of personal evaluation of various objects, such as organizations and institutions, minority groups, and individuals interacted with (Ajzen, 1991) As consumers make decisions regarding the purchase of products, the cost of the product is often a critical factor.The price factor becomes less sig-nificant; however, when purchasing green products, provided that consumers are willing to pay higher prices for them (Ng et al., 2018;Moser, 2015).Wei et al. (2018) explained that assessing readiness to pay a premium price for green products is part of measuring consumers' willingness to pay.Kirmani and Khan (2018) defined this willingness as the extra cost consumers intend to bear to buy green products.Kucher et al. (2019) added that it represents the maximum price consumers are willing to pay for a product and typically affects the decision-making process.The current study adopted five indicators from previous investigations, customized for specific studysubjects, to gauge consumers' willingness to pay more.These indicators included willingness to pay a premium, willingness to pay a premium without any discounts, willingness to pay extra (Tang & Lam, 2017), willingness to pay extra to avoid inferior products, and product use (Costa et al., 2021).It specifically examined the attitudes of consumers who adopt green lifestyles and, as a result, are more willing to spend more on green products.
This research examines consumers' attitudes who adopting a green lifestyle which, in turn, will encourage consumer' willingness to pay more for green products.
The hypotheses in this research are stated as follows (Figure 1): H1a: Consumers' attitudes influence purchase intention.
H1b: Consumers' attitudes influence willingness to pay more.
H2b: Green lifestyles influence willingness to pay more.
H3: Purchase intention influences willingness to pay more.
H4a: Consumers' attitudes influence willingness to pay more through purchase intention.
H4b: Green lifestyle influence willingness to pay more through purchase intention.

METHODOLOGY
The study employed descriptive and verification methods.The study variables were explained based on survey data using the descriptive method.Furthermore, data were collected through a questionnaire that consisted of 28 statement items regarding consumers' attitudes, green lifestyle, purchase intention, and willingness to pay more.Points 1 ("strongly disagree") to 7 ("strongly agree") were applied to each item in this study using a Likert scale.Characteristics of respondents based on sociodemographics, the majority are women at 78.7%, the majority were aged between 26-35 years (39.1%), and most had a Bachelor's degree (62.7%).Besides, product composition was one of the considerations for respondents when making a purchase (39.6%) and the majority was willing to pay more for the product by 10%-25% (39.6%) (see Table 1).Note: n = 225.

RESULTS
Testing the validity and reliability of items (attributes) is carried out using the Confirmatory Factor Analysis (CFA) approach.If the loading factor value is greater than 0.5, then the indicator is declared valid.However, the composite reliability value should be considered when there is an in-dicator with a validity of less than 0.500.An item can still be retained for analysis when the composite reliability value is greater than 0.60, as reliability is a necessary condition for validity (Leguina, 2015).Table 2 explains validity and reliability.
The results of the analysis found a validity coefficient smaller than 0.500, namely two indicators in the instrumental dimension (awareness of products and knowledge of product differences), in the healthy lifestyle dimension (regular exercise), and two indicators in the ecological lifestyles dimension (willingness to carry your own shopping bag and involvementin the organization).However, this indicator was retained from the analysis because it has a relatively high reliability coefficient, namely above 0.700.Apart from that, all indicators are statistically significant with Z-value greater than the Z-table (1.96).Especially for indicator awareness of green products, there is no Z-test statistic because this indicator is a fixed reference indicator and does not require validity testing.
Good results were shown by consumer attitudes through the results of the validity analysis of the two dimensions.Both dimensions have a loading factor or validity coefficient greater than 0.50.Likewise, a green lifestyle is validly measured by the dimensions of a healthy lifestyle and an ecological lifestyle with validity coefficients of 0.999 and 0.515, respectively (see Table 3).Hypothesis 1b was specifically confirmed, showing that consumers' attitudes variable hasno direct influence on willingness to pay more.This also suggested that attitudes and willingness to pay more were not necessarily interdependent.Table 4 shows that consumers' attitudes and green lifestyles have a significant impact on purchase intention, confirming the hypotheses H1a and H2a.
On the other hand, only green lifestyles affected willingness to pay more, confirming the hypothesis H2b.The analysis showed that consumers' attitudes significantly influenced purchase intention with a coefficient of 0.694.Similar results were shown by Jaiswal and Kant (2018) concerning green purchasing behavior, Huang and Ge (2019) regarding the development of electric vehicles, Woo and Kim (2019) regarding green food products, and energy-saving household appliances (Waris & Hameed, 2020).Changes in consumers' attitudes did not have an immediate effect on their willingness to pay more (H1b).This conclusion was drawn from the Z-value (0.755); lower than the Z-table value (1.96).These results were supported by Jorge et al. (2020) who showed students' healthy and environmentally friendly attitudes did not influence willingness to pay.The variable of green lifestyles had a smaller impact of 0.221.However, the z-value is 2.853, which is higher than the Z-table score of 1.96, which proves to have a significant impact on purchase intent.This was supported by Patak et al. (2021) concerning the influence of green lifestyles on intention to purchase chemical products.
Purchase intention had a significant influence on willingness to pay more, with an effect of 0.542.This showed that having strong intentions could lead to a higher willingness to pay (H3).The statistical significance of this relationship was supported by Z-value of 3.857, higher than Z- purchase intention as a mediator can significantly influence a green lifestyle on willingness to pay more (H4b).This was evident from Z-value (2.402), higher than Z-table value (1.96).Consumers' attitudes did not increase their willingness to pay more for green products in bulk stores, necessitating the formulation of a new model, as shown in Figure 2.

DISCUSSION
This study investigated factors influencing the willingness of consumers in Indonesia to pay more for convenience goods.The results showed that attitudes and green lifestyles significantly influenced purchase intention, while attitudes could specifically generate the intention to purchase green products in bulk stores.Opinions, purchase behavior, and confidence in consuming green products in the long term were positively affected by attitudes toward such products.Consumers felt proud, prestigious, and safe when consuming green products.Consumers' attitudes did not significantly impact this willingness.The inconsistency in attitudes showed a gap in the willingness of environmentally conscious consumers to pay more.This was supported by Dangelico et al. (2022), that awareness of product existence did not influence willingness to pay more for sustainable clothing products.In Indonesia, people often expect the government to provide affordable green products.Studies confirmed consumers' attitudes, particularly knowledge of green products and incentive policies, played a crucial role in encouraging behavior that supported willingness to pay more for convenience goods.Bulk store owners are recommended to give discounts for purchases of a certain nominal amount, and give a certain amount of money from recycled waste deposited to the bulk store.The government also needs to pay special attention to businesses in green product category by providing tax discounts, so that these businesses can cut costs and ultimately provide more competitive prices.
Studies have shown that adopting green lifestyles can also impact willingness to pay more for green products.This is demonstrated by purchasing organic and natural products such as processed foods, in the form of oatmeal, low calorie rice, vegan and gluten free crackers, various nuts, healthy drinks such as herbal medicine, and carrying bags made from recycled products when they shop.However, considering the long-term benefits obtained from these products, they are willing to pay more for green products in bulk stores.Business people, government, and environmental communities are recommended to be more consistent in providing information about healthy lifestyles and invite people to be directly involved in the community by having regular activities such as doing sports together, planting trees, and sorting waste, so that a healthy lifestyle can be formed.
The contribution of purchasing intention as an intervening variable showed that attitudes influenced willingness to pay more for a product.This indicates that the intention to purchase plays a crucial role in shaping the willingness to pay higher prices.For instance, people may plan to buy green products in bulk stores to minimize the use of plastic shopping bags, or they may plan to buy such products in small quantities as per their needs.Similarly, purchase intention could act as a mediator for green lifestyles to influence willingness to pay more for green products.In Indonesia, there has been a noticeable trend of people bringing personal shopping bags, particularly in bulk stores.This study significantly contributed to the green product portfolio by taking into consideration purchase intention into consumer buying decision convenience goods.

CONCLUSION
This study aims to examine consumers' attitudes toward adopting a green lifestyle, which, in turn, encourages consumers to be willing to pay more for green products.The study showed that consumers' attitudes could impact purchase intention but not necessarily affect willingness to pay more.Green life-styles had a significant impact on both purchase intention and willingness to pay more.Attitudes and green lifestyles played a crucial role in willingness to pay more, but were influenced by purchase intention.Furthermore, purchase intention had a stronger impact on willingness to pay more than attitudes and green lifestyles.This study examines the main factors influencing green product purchase behavior in bulk stores, including opinions on green products, use of personal shopping bags, strategic planning of bulk purchases, and willingness to pay more for added value.By considering these factors, decisionmakers in the store industry could effectively market green convenience goods.
This study has limitations of selecting samples from two areas in Indonesia and investigating multiple product types.Therefore, further research should focus on a broader region in Indonesia and investigate one product type (toiletries goods).Despite these limitations, there were strong elements related to convenience products less frequently used in previous studies.

Table 3 .
Second-order measurement model