Pricing strategy and marketing distribution channels on customer satisfaction and purchasing decision for green products

Abstract

This paper aims to investigate the impact of pricing strategy and distribution channels on the decision-making process of customers when purchasing green products. The focus is on the satisfaction of customers who purchase these products. The study is conducted on the population of all customers who purchase green products from small and medium-sized enterprises (SMEs). The sample size is determined using a formula that considers the number of variables or indicators. The study uses Partial Least Squares Structural Equation Modelling (PLS-SEM), which is a method used to test variants-based structural equation models with the support of SmartPLS software. The results show that all seven hypotheses are supported, indicating that pricing strategy and distribution channels play a critical role in customer satisfaction and decision-making processes when purchasing green products. The results have implications for SMEs that sell green products as they need to focus on their pricing strategies and distribution channels to increase customer satisfaction and decision-making. This study provides essential insights into the impact of pricing strategy and distribution channels on customer satisfaction and decision-making when purchasing green products. The findings can guide SMEs in developing effective marketing strategies to persuade more customers to purchase green products and contribute to environmental sustainability.