Linking Customer’s Cognitive, Environmental Attitude and Repeat Purchase of Green Innovative Product

Abstract

Pertalite RON 90 is a green innovative product (GIP) developed for Indonesia’s motor vehicles by Pertamina as a way to eradicate air pollution caused by vehicle fuels that are not environment friendly. This study investigates whether Indonesian customers’ environmental attitude play the role of mediator on the relationship between customers’ cognitive evaluation and their repeat purchase behaviour of Pertalite RON 90. Self-administered questionnaires were distributed to willing motor vehicles drivers in Jakarta; the respondents were those who have been and continued to buy Pertalite. In this survey, customer’s cognitive evaluation was measured through product, price, place and promotion (better known as the 4Ps) constructs. From SmartPLS-SEM analyses on 469 usable data, the study found that environmental attitude mediated the relationship between two cognitive variables (product, price) and customer’s repeat purchase of Pertalite but not for promotion and place. The findings imply that for GIP, only product and price are important in Indonesian customers’ cognitive evaluation compared to promotion and place; and that it is important for Indonesia’s GIP players and government to focus on developing customers’ environmental attitude as this factor impacted on their customer’s purchase for the product. The study’s findings have a significant impact on the country’s petroleum refuelling industry, automotive industry, and government in particular, as well as for marketing researchers.