Abstract:

The rapid growth of the industrial sector and population causes waste problems in Indonesia. The government began implementing regulations to limit the use of plastics. However, this effort needs support from both consumers and companies. Consumers are expected to adopt sustainable consumption in their daily life, and companies are urged to involve environmental sustainability in their strategy. Thus, green products appear as one of the possible solutions for reducing environmental sustainability issues. This study aims to analyze factors that could influence green product purchase intention for Generation Y and Generation Z in Indonesia. Generation Y and Generation Z were known for their concerns toward the environment, and they are the potential current and future consumers. Therefore, it is essential to understand their consumption behavior. This study is based on the Theory of Planned Behavior framework that was extended with additional variables, namely environmental concern, environmental knowledge, willingness to pay premium, moral attitude, and health consciousness. Data were collected by distributing questionnaires to 349 respondents adopting purposive sampling approach. Data were analyzed using Structural Equation Modeling. The result reported that all variables, except environmental concern, have positive influence on purchase intention.