Impact of Producer’s Environmental Performance on Consumers and Retailers Simultaneously in the Indonesian Retail Environment

Muhamad Ibnu Fajar,Haryoto Kusnoputranto,Raldi Hendro T S Koestoer,Misri Gozan

doi:10.3390/su14031186

Muhamad Ibnu Fajar, Haryoto Kusnoputranto + Show 2 more

Open Access

https://doi.org/10.3390/su14031186

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Journal: Sustainability	Publication Date: Jan 21, 2022
Citations: 1	License type: CC BY 4.0

Affiliation: University of Indonesia

Abstract

Producers improve environmental performance to reduce the release of post-production waste. The positive environmental performance of producers is expected to influence consumer environmental attitudes positively, specifically toward post-consumption waste. However, research is deficient in exploring the impact of producer environmental performance (PEP) on retailer-consumer relationship quality (RCRQ) and consumer purchasing behavior (CPB) simultaneously to drive consumer environmental attitude (CEA) in the retail environment. Therefore, this study aims to examine the effect of PEP on RCRQ and CPB simultaneously to drive CEA in the retail environment. The survey was conducted at 17 retail outlets for 150 consumers of lubricant producers in the industrial city of Gresik, Indonesia. Partial Least Square analysis indicates that consumers perceive PEP has positive effects on CEA, but negatively affects RCRQ and positively affects CPB. Thereby, CPB has a more significant positive effect than RCRQ on CEA. Although RCRQ and CPB have significant positive total effects, CPB has a more significant indirect effect than RCRQ in mediating the effect of PEP on CEA. This study provides actionable guidance to reduce the negative impact of PEP on RCRQ to enhance the mediating role of RCRQ for more positive consumer environmental attitudes.

Highlights

In recent decades, the rapid growth of automotive demand in developing countries, including Indonesia, has increased the amount of hazardous waste from used lubricating oils that must be disposed of [1]
An Indonesian lubricant producer located in Gresik is participating in a government program on environmental performance and environmental compliance for companies to meet sustainable development goals [9]
The questionnaire addressed 150 consumers who purchased lubricants at 17 authorized retail outlets of Indonesia’s national lubricants producer in Gresik City, East Java province. This lubricant producer operates a factory in Gresik City, which has been awarded a green rating for environmental performance management based on an assessment from the government [9]

Summary

Introduction

The rapid growth of automotive demand in developing countries, including Indonesia, has increased the amount of hazardous waste from used lubricating oils that must be disposed of [1]. An Indonesian lubricant producer located in Gresik is participating in a government program on environmental performance and environmental compliance for companies to meet sustainable development goals [9]. This lubricant producer markets lubricating oil for automotive purposes to consumers through retail outlets in Gresik. The impact of producers’ environmental performance on retailers and consumers is meaningful because it can affect the role of retailers and consumers. In the end, it can impact producers’ efforts to Sustainability 2022, 14, 1186.

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