Environmental Consciousness and Knowledge in Shaping Millennial Consumer

Attitude on Green Purchase Intention Fast Moving Consumers Goods (FMCG)

Products

1
Rizki Novianti, 2 Diana Sari, 3 Sucherly
1
Department of Management, Padjadjaran University, Indonesia, rzki.novianti@gmail.com,
+6281287677737
2
Department of Management, Padjadjaran University, Indonesia,
diana.sari@fe.unpad.ac.id, +628112290911
3
Department of Management, Padjadjaran University, Indonesia, sucherly@yahoo.com,
+62811216789

ABSTRACT
The green marketing movement has grown and green product innovations are
increasingly in demand among young consumers, many studies in the context of
green product consumption found inconsistent results. Young consumers claimed to
care for the environmental causes, but their claims are not necessarily translated into
green purchases (it is known as the green-gap phenomenon). The current study aims
to understand the millennial consumer attitude towards buying green products in the
influence of environmental consciousness and knowledge on green purchase
intention. The study focuses on Millennial Generation (21-36 years old) in Bandung,

1
a sample of 216 millennials participating in an online survey, and analyzed with the
help of structural equation modeling (SEM) with the partial least square approach
(PLS). The results indicated that environmental consciousness, knowledge, and
attitude positively influence purchase intention towards green products.

Keywords: purchase intention, environmental consciousness, environmental

knowledge, environmental attitude, millennial consumers.

INTRODUCTION
To overcome the environmental issues nowadays, Green marketing has
become a major trend in today’s business competition and consciousness of
environmental problems has grown more widely [ CITATION Les131 \l 1033 ]. Based on
a recent survey, 63% of Indonesian consumers are willing to buy products with eco-
labels despite the high price differences [ CITATION The19 \l 1033 ] It can be said that
consumers are increasingly conscious and educated that their buying behavior for a
product has a direct good or bad influence on the environment, therefore increasing
the demand of eco-friendly products.

According to the report of Kantar World Panel [CITATION Kan17 \n \t \l 1033 ] ,

consumer insight in Indonesia experienced a significant increase in 2017 to 2018
which occurred in the FMCG (Fast Moving Consumer Goods) sector, from 5.4% to
8.3%, especially in the beauty personal care category which experienced the strongest
growth from 5.8 % to 18.3%. This has been seen from 2016, based on a global
demand survey that 60% of Indonesian consumers consider organic, natural, ethical
factors into consideration in choosing beauty & personal care products [CITATION
Sha18 \n \t \l 1033 ]. A business person sees this as an increasing opportunity in the
market for green products so that green products are not only used as a trend, but also
a new lifestyle for consumers [CITATION Zer19 \l 1033 ].

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 IDN Research Institute research results [CITATION IDN20 \n \t \l 1033 ] show
that the target consumer for a market in a developing country like Indonesia will be
dominated by genes. Y or millennial consumers until 2035 and 65% of the millennial
generation is a generation that is willing to pay more for environmentally friendly
products[ CITATION Web20 \l 1033 ]. Even though Indonesia is a potential market for
green products and millennial consumers dominate the Indonesian market, are they
more environmentally friendly? The survey results from elusive green consumers
show that only 26% of consumers make a purchase, whereas 65% say they are willing
to buy the product.[ CITATION Whi19 \l 1033 ].

This is a symptom of the green-gap phenomenon or the gap that occurs

between attitudes and behavior, which is supported by several studies on socially
responsible/green consumption which found that consumers who claim they care
about environmental and social issues are not really 'doing what they want. they talk
about '[CITATION Car \l 1033 ], also in previous studies that have used attitude to test
the motivation towards buying intention of green products, but without taking into
account the impact of environmental consciousness and environmental knowledge,
even though both are quite important factors that can determine interest in and
purchasing decisions for environmentally friendly products. [CITATION Kam16 \l 1033 ].
So that this research tries to find out how environmental consciousness and
environmental knowledge are in shaping the attitudes of millennial consumers to
purchase environmentally friendly FMCG products.

LITERATURE REVIEW
Environmental Consciousness
Two of the most commonly used predictors of environmentally friendly product
consumption are environmental consciousness and environmental knowledge
[ CITATION Heo19 \l 1033 ]. Environmental consciousness refers to people's awareness
of environmental problems, their support for efforts to solve them, and their

3
willingness to personally contribute to their solutions [ CITATION Yad16 \l 1033 ].
Environmentally conscious consumers have increased demand for the manufacture
and purchase of environmentally friendly products. This has increased an individual's
environmental consciousness and tends to change their consumption
behavior[ CITATION Jan11 \l 1033 ]. Kim et al[CITATION SAr16 \n \t \l 1033 ] found that
there is a positive relationship between environmental consciousness and green
product purchase intention. According to Yadav et al[CITATION Yad16 \n \t \l 1033 ],
environmental consciousness is divided into three dimensions, namely: general
belief/values, personal attitude, and information/knowledge. On the basis of the
discussion and supporting evidence from the literature, following hypothesis were
proposed.

H1: Environmental consciousness shaping the environmental attitude of millennial

consumers
H3: Environmental consciousness is a factor in millennial consumers purchase
intention of environmentally friendly FMCG products

Environmental Knowledge
Environmental Knowledge is defined as basic knowledge that you have about the
environment that helps encourage behavioral commitments to consume
environmentally friendly products [ CITATION Yad16 \l 1033 ]. When environmental
problems become a concern, knowledge of the environment changes the
environmental attitude and purchasing behavior of an individual that is influenced by
environmental knowledge[ CITATION Sco14 \l 1033 ]. According to Yadav et al
[CITATION Yad16 \n \t \l 1033 ], environmental knowledge is divided into three
dimensions, namely: factual knowledge. Subjective knowledge, and subjective
knowledge. Previous research stated that environmental knowledge is one of the
important variables or elements that have a major influence on consumer intentions to
buy environmentally friendly products.[CITATION Wan14 \l 1033 ]. Education or

4
delivery of information about environmentally friendly products can have a strong
influence on consumer intentions in buying these products [ CITATION Les131 \l 1033 ].
With the increase in environmental knowledge or environmental knowledge,
consumers become more informed and educated to increase the likelihood of higher
purchase intentions[ CITATION Lee12 \l 1033 ]. On the basis of the discussion and
supporting evidence from the literature, following hypothesis were proposed.

H2: Environmental knowledge shaping the environmental attitude of millennial

consumers
H4: Environmental knowledge is a factor in millennial consumers making purchase
intention of environmentally friendly FMCG products

Environmental Attitude
Attitude is defined as an evaluation or assessment of an individual whether positive or
negative evaluation of a product until there is an intention to buy the product
[ CITATION Ajz \l 1033 ]. Attitude consists of three components, namely: cognitive,
affective, and conative[ CITATION Ajz \l 1033 ]. Several studies have found that an
environmental attitude can encourage millennial consumer purchase intentions for
environmentally friendly products[ CITATION Yad16 \l 1033 ]. Sinnappan and
Rahman[CITATION Sin11 \n \t \l 1033 ] in their research in Malaysia found that
environmental attitude is the strongest predictor of environmentally friendly
purchasing behavior. Johe and Bhullar[CITATION Joh16 \n \t \l 1033 ]also found that
consumer attitudes indirectly mediate the effect of consumer purchase intentions on
products with organic identities. Therefore, the attitude towards green products is one
of the important variables in predicting the purchase intention of environmentally
friendly products. On the basis of the discussion and supporting evidence from the
literature, following hypothesis were proposed.
H5: Environmental attitude is a factor in millennial consumers making purchase
intention of environmentally friendly FMCG products

5
H6: Environmental attitude mediate the environmental consciousness of millennial
consumers to make purchase intentions of environmentally friendly FMCG
products
H7: Environmental attitude mediate environmental knowledge of millennial
consumers to make purchase intentions of environmentally friendly FMCG
products

Green Purchase Intention

Purchase intention is the intention and willingness to purchase environmentally
friendly products compared to conventional products)[ CITATION Yad16 \l 1033 ]. There
are three dimensions of green purchase intention according to Yadav et al [CITATION
Yad16 \n \t \l 1033 ]that is; trust in the product, consumer decisions, and willingness
to pay more. It is important to attract the buying interest of millennials because
younger consumers can influence the purchases of their friends and family, whereas
this social drive can have a big influence on buying behavior for eco-friendly
products.[ CITATION Lee11 \l 1033 ]. In previous studies categorized that 66% of
consumers have a high enough intention to buy green products and the remaining
33% are consumers who tend not to have the intention to buy green products.
[ CITATION Das12 \l 1033 ].

Previous studies suggest that researchers study and investigate variables that
influence consumer attitudes and purchase intentions of green products[CITATION
NBa10 \t \l 1033 ] . The previous study used attitude to test the motivation towards
buying intention of green products without taking into account the impact of
environmental consciousness and environmental knowledge [CITATION Kam16 \l
1033 ]. Whereas environmental consciousness and environmental knowledge are quite
important factors that can determine interest in and purchasing decisions for an
environmentally friendly product[ CITATION Ama12 \l 1033 ]. Based on the above

6
Environmental
Consciousness
(X1, independent)
 Green purchase
Environmental intention
Attitude
(Z, Mediation (Y, dependent)
Variable)

Environmental
Knowledge
(X2, independent)

explanation, it is known that there is a relationship between variables in this research

so that the research paradigm can be seen from Figure 1.

Figure 1. Research Framework

METHODS
The unit analysis of this study is millennial customers who know and have purchased
environmentally friendly FMCG products. This study is quantitative. Thus, data is
collected by online questionnaire in a list of questions related to environmental
consciousness, environmental knowledge, environmental attitude, and green purchase
intention. The population in this study were the millennial generation in Bandung
aged 21-36 years. The data used in this study are primary. Primary data is data
obtained through questionnaires that are directly distributed to millennials.
Questionnaires will be made based on the hypotheses that have been proposed and
use a Likert Scale with 5 rating points with the details: 1 = Strongly Disagree, 2 =
Disagree, 3 = Neutral, 4 = Agree, 5 = Strongly Agree.

Table 1. Summary of the Variables for the Study

Variable Hypothesis Items on Survey Source
Environmental H1, H3 Questions 1-6 Yadav R
Consciousness [CITATION
Yad16 \n \t \l
1033 ]
Environmental Knowledge H2, H4 Questions 7-13 Yadav R
[CITATION
Yad16 \n \t \l

7
 1033 ]
Environmental Attitude H5, H6, H7 Questions 14-21 Ajzen [CITATION
Ajz \n \t \l 1033 ]
Green Purchase Intention H1, H2, H5 Questions 22-27 Yadav R
[CITATION
Yad16 \n \t \l
1033 ]

Sampling was done by dividing the population into groups based on age and gender,
namely the junior millennial age group aged 21-28 years and the millennial senior age
group aged 29-36 years. Good and representative sample size refers to Hair et.
al[CITATION Hai14 \n \t \l 1033 ], namely by multiplying the number of indicators by 5
to 10. The indicators of this study amounted to 27, then the sample calculation is as
follows; Number of Samples: 27 x 8 = 216 samples. To have a more general and
objective result, The sampling technique used is included in the probability sampling
category. For data analysis, the PLS-SEM method used SmartPLS version 3 software
to process the data.
Table 2. Characteristics of Respondents
Category Respondents Percentage
Man 48 22.2
Gender
Woman 168 77.8
21-28 years 201 93
Age
29-36 years 15 7
Entrepreneur/ 174 80.6
Employeed
Occupation Unemployed 7 3.2
Student 34 15.7
Retired 1 0.5
<1.500.000 31 14.3
Income 1.500.000-3.500.000 55 25.5
>3.500.000 130 60.2

RESULTS AND DISCUSSION

8
After the questionnaire is considered valid and reliable, then the questionnaire is
shared through the Google Form application to millennials in the Bandung area that
knows about and has purchased environmentally friendly FMCG products. The total
respondents obtained have met the minimum number of research samples, amounting
to 216 respondents. A validity test is carried out on the statement items in the
questionnaire. Validity tests in this research used the loading factor, average variance
extracted (AVE), and cross-loading. In this research, the reliability test will be
conducted using composite reliability and Cronbach's alpha.

As the first step of SEM analysis, the researchers construct a measurement model
(CFA). CFA is conducted to ensure the research data are valid and reliable. Referring
to Ghozali[CITATION Gho16 \t \l 1033 ] The parameter of convergent validity testing is
to see the loading factor value on each construct indicator, which is> 0.7, but if the
loading factor has a value between 0.5-0.6 then it is still considered sufficient and
acceptable. for each indicator the minimum value of Average Variance Extracted is ≥
0.5 [CITATION Gho16 \t \l 1033 ].

After the research data are proved to be reliable and valid, the next step is to test the
research hypotheses. The hypothesis testing is conducted by constructing a structural
model as the second step of SEM modeling. The results of the structural model are
illustrated in Figure 2.

Table 3. validity and reliability

Constru Facto Constru
Cronbac
ct and r AV ct Remar
h's
indicato loadi E Reliabili ks
alpha
r ng ty
Environmenal Attitude (ATT)
ATT1 0.776 0.51 0.856 0890 Valid &

9
 Reliabl
e
Valid &
ATT2 0.742 Reliabl
e
Valid &
ATT3 0.721 Reliabl
e
Valid &
ATT4 0.784 Reliabl
e
3 Valid &
ATT5 0.757 Reliabl
e
Valid &
ATT6 0.700 Reliabl
e
Valid &
ATT7 0814 Reliabl
e
Valid &
ATT8 0820 Reliabl
e
Environmental Consciousness (EC)
0.60 0.858 0897 Valid &
EC1 0.857 1 Reliabl
e
Valid &
EC2 0833 Reliabl
e
EC3 0867 Valid &
Reliabl

10
 e
Valid &
EC4 0.762 Reliabl
e
Valid &
EC5 0.884 Reliabl
e
Valid &
EC6 0.798 Reliabl
e
Environmental Knowledge (EK)
Valid &
EK1 0.778 Reliabl
e
Valid &
EK2 0.764 Reliabl
e
Valid &
EK3 0.756 Reliabl
e
Valid &
0.50
EK4 0.853 0830 0.874 Reliabl
1
e
Valid &
EK5 0.734 Reliabl
e
Valid &
EK6 0.766 Reliabl
e
Valid &
EK7 0840 Reliabl
e

11
Green Purchase Intention (PI)
Valid &
PI2 0.791 Reliabl
e
Valid &
PI3 0830 Reliabl
e
Valid &
PI4 0830 Reliabl
0.53 e
0817 0868
0 Valid &
PI5 0.710 Reliabl
e
Valid &
PI6 0.726 Reliabl
e
Valid &
PI7 0.825 Reliabl
e

12
 Figure 2. Structural equation modeling results

Table 4. Hypotheses testing results on the structural model (Hypothesis direct effect)
Standar
Origina Sampl d T
P
l e Deviatio Statistics Remark
Value
Sample Mean n (| O / s
s
(O) (M) (STDEV STDEV |)
)
H1
ATT ->
0.468 0.464 0.085 5,537 0 supporte
PI
d
H2
EC ->
0.596 0.596 0.058 10,207 0 supporte
ATT
d

13
 H3
EC -> PI 0.189 0.193 0.084 2,252 0.025 supporte
d
H4
EK ->
0.253 0.254 0.065 3,918 0 supporte
ATT
d
H5
EK -> PI 0.232 0.234 0.082 2,832 0.005 supporte
d

The structural model's results in Figure 2 and Table 2 show that all explanatory
variables can influence the purchase intention towards eco-friendly FMCG products
among millennial consumers. Consciousness on the environment provides the largest
influence In shaping the environmental attitude towards green purchase intention. The
environmental attitudes of millennial consumers are the second largest in influencing
purchase intention towards eco-friendly FMCG products. Environmental knowledge
also has a positive influence on attitudes in buying environmentally friendly products,
this is consistent with the study of Lu et al [CITATION Les131 \n \t \l 1033 ] which
reveals that education or delivery of information about environmentally friendly
products can have a strong influence on consumer intentions in buying these
products. Therefore, H1-H5 is supported.

These findings are also supported by the previous study stated that environmental
consciousness has the greatest influence on the purchase intention of young
consumers in India [ CITATION Yad16 \l 1033 ]and two of the most commonly used
predictors of environmentally friendly product consumption are environmental
consciousness and environmental knowledge (Heo J, 2019). Research findings of
green product consumption are indeed varied. Singhal and Malik[CITATION Aak18
\n \t \l 1033 ]proved that age and education level do not have different attitudes
towards environmentally-friendly cosmetic products, but income levels have an effect

14
on this. Therefore, as the result of the attitude variable R-square value (ATT) is 65%,
which means that the environmental consciousness (EC) and environmental
knowledge (EK) variables can explain the ATT variant by 65%, the rest is influenced
by other factors not included in the study. this.

After conducting the direct effect test, the next step is to conduct a mediation test or
indirect effect test which refers to the procedure developed by Baron and Kenny.
[CITATION Bar86 \n \t \l 1033 ] where the t-statistic value must be greater than> 1.96. If
the effect of the independent-dependent variable is insignificant and the result of the
influence of the mediation-dependent variable is significant with a t-statistic value
greater than 1.96, then the role of the mediating variable is full mediation.

Table 5. Hypotheses testing results (indirect effect)

Standar Remark
T
Origina Sampl d s
Statistic P
l e Deviatio
s (| O / Value
Sample Mean n
STDEV s
(O) (M) (STDEV
|)
)
H6
EC ->
0.279 0.277 0.058 4,796 0 supporte
ATT -> PI
d
H7
EK ->
0.118 0.118 0.038 3,131 0.002 supporte
ATT -> PI
d

Table 5 shows that the environmental attitude (ATT) variable has an indirect effect
value of more than> 1.96 which means H6 and H7 are supported and it can be
concluded that the ATT variable mediates the relationship between the independent
variables EC and EK on the dependent variable PI. Referring to Baron and Kenny's
statement[CITATION Bar86 \n \t \l 1033 ] that full mediation or perfect mediation

15
occurs when the independent variable does not affect the dependent when going
through the mediation variable, and in this study, the effect of the independent
variables EC and EK on the dependent variable PI still reaches a significant value
even though it has gone through the ATT mediation variable, so it can be concluded
that the environmental mediation variable attitude (ATT) partially mediate (partial
mediation).

These results also support several previous studies that stated that consumer attitudes
indirectly mediate the effect of consumer purchase intentions on products with
environmentally friendly identities [CITATION Joh16 \t \l 1033 ] . Environmental
awareness, environmental knowledge, and purchase intention of young consumers in
Thailand are mediated by environmental attitudes[CITATION Kam16 \l 1033 ] and young
consumers' interest in buying environmentally friendly products can be predicted by
their attitude and knowledge about environmental issues [ CITATION Yad16 \l 1033 ].

CONCLUSION
The study intends to reveal the influence of environmental consciousness and
knowledge as two of the most commonly used predictors of environmentally friendly
product consumption in shaping environmental attitude on purchase intention towards
eco-friendly fast-moving consumers goods (FMCG) products among millennial
consumers in the context of one of the cities in developing countries in Indonesia,
Bandung. The analysis of two hundred sixteen empirical data proves that all of the
hypotheses were supported. As illustrated in figure 2, the millennial consumers'
purchase intention toward eco-friendly FMCG products is positively influenced by
their consciousness, knowledge, and attitude on the environment,
The results provide the theoretical contribution in explaining the purchase intention of
eco-friendly FMCG products, especially among millennial consumers in Bandung.
The addition of environmental consciousness, environmental knowledge, and

16
environmental attitude as a mediating variable in this study contribute to a better
explanation in understanding the purchase intention of eco-friendly FMCG products.
Practically, the result of this study gives a managerial insight to educate millennial
consumers to consciously care and preserve environmental sustainability by
consuming green products. Through consistent excellent education and marketing
strategies, these millennial consumers are expected to more conscious of their
environment. A good level of environmental consciousness will enhance the positive
attitudes on green products that will positively impact purchase intentions.

LIMITATION
The study has some limitations that should be addressed in further researches. The
study limits itself only measures purchase intention, not actual buying behavior
Furthermore, future research needs to consider other explanatory variables that can
theoretically influence the purchase intention toward green products, for instance, the
level of income, how much price consumers are willing to pay (Singhal & Malik,
2018), self-identity, and the consideration of actual buying behavior. The
generalization of the research results will be different if future research is carried out
on the millennial generation other than the city of Bandung or even carried out on the
millennial generation in Indonesia for results that are more representative and
represent the behavior of millennial consumers at large.

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