Understanding of Greening Costs, Environmental Knowledge, and Generation Z’s Willingness to Pay

Ujang Wildan; Abin Suarsa; Muhamadaree Waeno

doi:10.26737/ij-mds.v9i2.9650

Understanding of Greening Costs, Environmental Knowledge, and Generation Z’s Willingness to Pay

Ujang Wildan, Abin Suarsa, Muhamadaree Waeno

Abstract

This study examined the influence of product greening cost comprehension and environmental knowledge on green product willingness to pay among Generation Z consumers, with environmental awareness as a mediator, across six Indonesian metropolitan cities: Jakarta, Bandung, Yogyakarta, Surabaya, Medan, and Semarang. A quantitative-explanatory approach used a 5-point Likert-scale questionnaire administered to 464 respondents via purposive sampling, analysed with Partial Least Squares Structural Equation Modelling (SmartPLS 4.0). The measurement model showed strong convergent validity, satisfactory composite reliability, and adequate discriminant validity. Structural model testing confirmed that product greening cost comprehension positively influenced environmental awareness, environmental knowledge exerted a dominant effect on environmental awareness, and both environmental awareness and environmental knowledge significantly influenced willingness to pay. Bootstrapping mediation testing with Bias Corrected Confidence Intervals confirmed full mediation by environmental awareness on the cost comprehension-willingness to pay path, and partial mediation on the environmental knowledge-willingness to pay path.

Keywords

Greening Cost; Willingness to Pay; Environmental Knowledge; Environmental Awareness; Generation Z

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References

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DOI: http://dx.doi.org/10.26737/ij-mds.v9i2.9650

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