The Influence of Online Social Media Activities on Customer’s Attitude and Willingness to Pay Green Products: Case Study of Green Products

Abstract

In the current era, Environmental issues are the most important topic today because almost all countries are aware of it. In line with that, public awareness of environmental issues has continued to increase over the last few decades because in carrying out their lives, environmental issues and human intervention in meeting their needs cannot be separated. Impacts such as deforestation, carbon emissions, and the destruction of the ozone layer are real examples. In addition, On the agricultural side, it can be seen from the trend of Urban Farming in Indonesia which continues to increase, indicating that people are increasingly aware of the Go Green Movement which is good for the earth and developed green consumerism. Therefore, PLUS, a company that supports the green movement, through its green product Planting Kit which aims to improve food security in urban areas in order to achieve sustainability and minimize the environmental damage. However, PLUS, a start-up that uses social media as a potential marketing tool, PLUS does not have a variety of content. Therefore, before going any further for efforts to increase sales in the future, this study conducts research to find the significant relationship between online social media activities carried out on Customer Attitude towards green products which ultimately leads to Willingness To Pay in buying Green Products. This research was conducted with PLS SEM from a quantitative method collected by 228 respondents from Indonesian citizens, both male and female who have bought and liked green products and used social media to buy or find information about green products. The results of the study show that Online Social Media Marketing Activities Entertainment, Interaction, Trendiness, and Word Of mouth have a positive effect on Attitude Toward Green Products, whereas Customization was found to be insignificant toward predicting consumer's attitude. With the positive Attitude Toward Green Products being formed, it has a significant and positive influence on Customer Willingness To Pay for Green Products. The findings from this study will be useful for Business Owners because they provide in-depth practice on how to improve Customer Attitude Toward Green Products through the suitable Online Social Media Marketing Activities type of contents that can build Customer Willingness To Pay optimally. It is hoped that this research can be helpful for developing a marketing strategy for PLUS in the future.