The green effect: how brand positioning fuels sustainable purchasing

GOESTIAWAN, GELVIN and Anastasia, Njo (2025) The green effect: how brand positioning fuels sustainable purchasing. [UNSPECIFIED]

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Abstract

Purpose: The construction of homes to meet the primary needs of society results in a surge of harmful gas emissions into the ecosystem. Globally, the construction sector alone contributes a staggering 39% of gas emissions, underscoring the urgent need for green innovation to mitigate their adverse impacts. The concept of green living emerges as a strategy to address this challenge. Consequently, this research aims to delve into the influence of green brand positioning and perceived financial risk on the purchase intention of green residential properties, with attitude toward environment as a mediating variable. Design/methodology/approach: This study adopts a quantitative associative approach, employing a purposive sampling technique to target consumers aged at least 21 years old who live in Indonesia. Data are collected through online questionnaires distributed via Google Forms, garnering responses from 269 participants. Data are processed using PLS-SEM with the SmartPLS 3.0 program for hypothesis testing. Findings: The research findings reveal that both functional and emotional positioning have a significant impact on attitudes toward environmental concerns. However, green positioning does not exhibit such influence on these attitudes. Moreover, attitude toward environmental issues significantly affects purchase intentions, although perceived financial risk does not. This study also intimates that functional and emotional positioning significantly influence purchase intention, with attitude toward environment as a mediating variable. Practical implications: Consumer priorities lie in the functional and emotional attributes of the green homes they purchase, while environmental consciousness needs to be heightened. However, investing in green living often entails bearing higher costs, thus creating financial constraints on consumers. This condition also calls for ongoing education and advocacy initiatives to bolster consumer awareness of green living practices, fostering consumer environmental awareness and active participation in efforts to reduce greenhouse gas emissions. Originality/value: Research on green living remains limited in Indonesia due to insufficient understanding and low environmental awareness. It is imperative to address this issue to foster a deeper understanding of green concepts and promote environmentally conscious behavior on a wider scale.

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