THE EFFECT OF GREEN PERCEIVED VALUE, GREEN PERCEIVED RISK AND GREEN TRUST TO GREEN PURCHASE INTENTION PRODUCT OF The Effect Of Green Perceived Value, Green Perceived Risk And Green Trust To Green Purchase Intention Product Of The Body Shop.

THE EFFECT OF GREEN PERCEIVED VALUE, GREEN PERCEIVED RISK
AND GREEN TRUST TO GREEN PURCHASE INTENTION PRODUCT OF
THE BODY SHOP
THESIS
To achieve Management Degree of Economics and Business Faculty

Written By:
YO TENDY PRATAMA
B100112009

FACULTY OF ECONOMICS AND BUSINESS
DUAL DEGREE MANAGEMENT PROGRAM
MUHAMMADIYAH UNIVERSITY OF SURAKARTA
2015

i

ii

The Effect of Green Perceived Value, Green Perceived Risk and Green Trust To
Green Purchase Intention Product OfThe Body Shop

Yo Tendy Pratama
Faculty of Economics and Business
Dual Degree Management Program
Muhammadiyah University of Surakarta
Email: yo.tendy@gmail.com
ABSTRACT
The purpose of this study is to develop a framework to explore the
influence of the original green perceived value and green perceived risk on green
purchase intention of and to discuss the mediating role of green trust and also
explore positive and negative influence. This study applies four original concepts
– green perceived value, green perceived risk, green trust, and green purchase
intentions – to develop an integral model to enhance green purchase intentions.
The empirical results show that perceived value will positively affect trust green
and green purchase intention, while perceived risk negatively affects the good
green from them. Furthermore, this study shows that the relationship between
purchase intention of green and two of their predecessors-the green felt valuesand
perceived risks of green-the green partially mediated by trust. Therefore
environmentally friendly goods with efficient marketing to increase the perceived
value of the green and to reduce the perceived risk is beneficial to increase the
confidence of green and green purchase intention. It uses four new constructiongreen perceived value, green perceived risk, green trust, and green purchase

intention – to develop original research framework to improve the green purchase
intention. Therefore, this paper develops a framework of research intentions to
purchase environmentally friendly goods marketing are fairly efficient way of
marketing and filling gaps in the research. Keywords : Green purchase intention,
Green trust, Green perceived value, Green perceived risk, Green marketing.

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INTRODUCTION
A. BACKGROUND

The public has increasingly noticed environmental issues by reason
of the disastrous environmental pollution arisen from industrial
manufacturing activities in the world (Chen, 2011). Consequently, more
firms are prone to accept environment protection as their social
responsibility (Peattie, 1995; Dwyer, 2009; Lee, 2009). Because
environmental concern has quickly become a mainstream issue as a result
of global warming nowadays, more forethoughtful companies would like
to utilize green opportunities (Molina-Azorı´n et al.,2009; Haden et al.,
2009).

Why the body shop
Founded in 1976 by the late British environmental and human
rights campaigner Dame Anita Roddick, The Body Shop started life as a
small outfit in Brighton selling just 25 products. Customers were
encouraged to recycle packaging (partly because Roddick didn't have
enough bottles at first) and there was a real emphasis on natural
ingredients that were ethically sourced and cruelty-free. Now the range
consists of over 300 products and there are more than 2500 stores
worldwide.
B. RESEARCH PROBLEM
This research aims to analyze and test empirically, does product
quality, and brand.These problems can be derived into specific problem,
that:
1. How the effect of green percieved value toward customer green trust?
2. How to the effect of green perceived risk toward customer green trust?
3. How the effect of green perceived value toward consumer green
purchase intention?

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4. How the effect of green perceived risk toward consumer green
purchase intention?
5. How the effect of green trust toward consumer green purchase
intention?

C. THE PURPOSE STUDY
Based on the research problem above the purpose of this study is to
analyze. The aim of this study is toknow the determinan issues. The main
purpose studys of this research are as follows:
1. To analyze the effect of green perceived value toward customer green
trust.
2. To analyze the effect of green perceived risk toward customer green
trust.
3. To analyze the effect of green perceived value toward consumer
purchase intention.
4. To analyze the effect of green perceived risk toward consumer
purchase intention.
5. To analyze the effect of greentrust toward on consumer purchase
intention.


D. BENEFIT OF RESEARCH
1. Benefits that can be taken by The Body Shop is a material consideration
in implementing sustainable corporate strategy for a product in order to
create a positive perception of the customer in order to create
competitive advantage to the company.
2. Results of this study are expected to provide information and contribute
to the development of science, especially with regard to green perceived
value, green perceived risk, green trust and green perceived intention.
3. The results of this study are also expected to be used as reference
material for future research

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LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT
H1. Green perceived value is positively effect with green trust.
The positive effect of green perceived value on green trust Perceived
value is defined as a consumer’s overall evaluation of the net benefit of a
product or service based on a consumer’s appraisal (Bolton and Drew, 1991;
Patterson and Spreng, 1997). Previous research has widely explored
perceived value because it has a positive effect on marketing performance

(Sweeney et al., 1999). Because perceived value is more important nowadays,
companies can enhance consumer purchase intentions through product value
(Steenkamp and Geyskens, 2006). A product can deliver value to customers
by offering them benefit and by differentiating the product from competitors’
(Zeithaml, 1988; Aaker, 1996).
H2. Green perceived risk is negatively effect with green trust.
The negative effect green perceived risk on green trust. Perceived risk
is a subjective evaluation by consumers associated with possible
consequences of wrong decisions (Peter and Ryan, 1976). Because perceived
risk is a combination of negative consequence and uncertainty, the
assessment of perceived risk would affect customer purchase decision (Peter
and Ryan, 1976; Stone and Gronhaug, 1993; Aaker, 1996). Prior research
asserts that perceived risk would impact consumer purchase decisions and
behaviors (Chaudhuri, 1997; Mitchell, 1992).
H3. Green trust is positively associated with green purchase intentions.
The positive effectgreen trust on green purchase intentions.Trust
caused from three beliefs – integrity, benevolence, and ability – is an
expectation held by one party that the word, promise, or statement of another
party can be relied on (Rotter, 1971; Schurr and Ozanne, 1985). Besides, trust
is an extent of the confidence that another party would behave as expected

(Hart and Saunders, 1997). Customer trust is a fundamental determinant of
long-term consumer behavior (Leeet al., 2011). Hence, consumer purchase
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intentions are affected by consumer trust (Harris and Goode, 2010). Past
literature posits that customer trust is a determinant of consumer purchase
intentions (Schlosser et al., 2006).
H4. Green perceived value is positively associated with green purchase
intentions.
The positive effect green perceived value on green purchase
intentions. Because consumer judgment is often based on incomplete
information, perceived value of products which are acted as a signal to them
would positively influence their purchase intentions (Kardes et al., 2004).
Perceived value is a set of attributes which are related to the perception of a
product’s value, so it can build up a positive word-of-mouth effect and raise
purchase intentions (Sweeney et al., 1999; Ashton et al., 2010).
H5. Green perceived risk is negatively associated with green purchase
intentions.
The negative effect green perceived risk on green purchase intentions.
Perceived risk has a negative influence on the purchase decision of customers

(Murphy and Enis, 1986; Harridge-March, 2006). Besides, perceived risk is a
subjective expectation of a loss, so it would significantly affect customer
behaviors (Engel et al., 1986; Mitchell, 1992; Chaudhuri, 1997; Mitchell,
1999). Perceived risk theory posits that buyers are apt to minimize their
perceived risk rather than to maximize their expected payoff (Mitchell, 1999).
The reduction of perceived risk leads to the increase of purchase probability
and to the rise of customer purchase intentions, so perceived risk is negatively
associated with purchase intentions (Wood and Scheer, 1996; Mitchell, 1999;
Chang and Chen, 2008).

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METHODOLOGY AND DISCUSSION
The population in this study is the all customer makes apurchase of
organic products in website kasku.com. In this study, the number of samples
in this study amounted to 88 respondents (group the body shop) in kaskus, on
the recommendation of the assumptions under lying path analysis tool (path
analysis), which is a minimum of 88 respondents.
With benefits, or their income and savings they have a high
involvement to the body shop. Because they are also helped by the Internet,

magazines, electronic media, etc. To collect the source and find out the latest
styles this study took respondents 18-30 years because of the involvement of
well-known brands and purchase the body shop.
The research object of this study focuses on female consumers who
have experience of purchasing products, the body shop in Indonesia.
Questionnaires were purposive random sampling to consumers who have
experience of purchasing information and electronics products. Randomly
selected sample of respondents 18-30 years. For each randomly selected
consumers to confirm he must have experience of purchase and production
formation.
The technique sampling that is used on this research is Purposive
Random Sampling. Respondents are gathered and asked by various standard
questions. Then the data are calculated and analyzed by SPSS. Data collection
techniques: Questionnaire.

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Table 1. Respondents by Item Question Answer
Variable


Item

Respondent Answer

Question

GPR

GPV

GT

GPI

1

2

3


4



%



%



%



GPR1

1

1.1%

17

19.3%

45

51.1%

22

GPR2

0

0.0%

25

28.4%

43

48.9%

GPR3

3

3.4%

19

21.6%

37

GPV1

3

3,4%

13

GPV2

2

2.3%

GT1

4

GT2

5


%

25.0%

3

3.4%

17

19.3%

3

3.4%

42.0%

26

29.5%

3

3.4%

13.8% 33

37.5%

21

23.9% 18

20.5%

15

17%

23

26,1%

21

23.9% 27

30.7%

4.5%

4

4.5%

21

23.9%

35

39.8% 24

29.3%

4

4.5%

6

6.8%

21

23.9%

34

28.6% 25

26.1%

GT3

6

6.8%

10

11.4% 23

26.1%

33

37.5% 16

18.2%

GPI1

6

6.8%

11

12.5% 28

31.8%

36

30.9%

7

8.0%

GPI2

5

5.7%

18

20.5% 34

38.5%

26

29.5%

5

5.7%

GPI3

1

1.1%

27

30.7% 36

40.9%

18

20.5%

6

6.8%

%

Sources: Primary data were processed in 2014
Table 2. Validity Test Item Questions
Item Questions

Correlation

p-value

Information

GPV 1

0,550

0,000

Valid

GPV 2

0,872

0,000

Valid

GPR 1

0,226

0,034

Valid

GPR 2

0,350

0,001

Valid

GPR 3

0,690

0,000

Valid

GT 1

0,310

0,003

Valid

GT 2

0.299

0,005

Valid

GT 3

0.694

0,000

Valid

GPI 1

0.501

0.000

Valid

GPI 2

0.389

0.000

Valid

GPI 3

0.821

0.000

Valid

Sources: Primary datawereprocessedin 2014

Table 3. Reliability Test Results

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Alpha Correlation

Information

Green Perceived Risk

0.709

Reliable

Green Perceived Value

0.611

Reliable

Green Trust

0.635

Reliable

Green Purchase Intention

0.672

Reliable

Variable

Sources: Primary data were processed in 2014
The data in Table 3 it can be seen that the alpha correlation preponderant
0.6 indicates that the question which is an indicator of variable Green
Perceived Risk, Perceived Value of Green, Green Trust and Purchase
Intention Green is reliable.
Table 4. Multicollinearity Test
Variable

VIF

Information

Green Perceived Risk

1,118

Not occur multicollinearity

Green Perceived Value

1,121

not occur multicollinearity

Green Trust

1,142

not occur multicollinearity

Sources: Out put SPSS in 2014
From table 4 above shows that the VIF value of all independent variables
have VIF value>10, which means that the regression equation there is no
multicollinearity.
Table 5. Regression Analysis 1
Unstandardized Coefficients
Model

B

Std. Error

7.416

1.844

GPV

.238

.113

GPR

-.336

GT

.300

1 (Constant)

Standardized
Coefficients
T

Sig.

4.023

.000

.201

2.108

.038

.121

-.266

-2.788

.007

.092

.314

3.264

.002

a. Dependent Variable: GPI

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Beta

Table 5 Data addressing the regression coefficients on variables GPV
(0.201) shows a positive value, ie the direction o fa significant relationship
exists between GPV against GPI variables (sig. 0.038), meaning that if the
higher GPV then GPI will increase. While the regression coefficient on the
variable GPR (-0.266) shows a negative value, ie there is a significant
inverse relationship between GPR to GPI (sig. 0.007), meaning that if the
higher GPR then GPI getting down. And the regression coefficient CM
(0.314) shows a positive value, ie the direction of a significant relationship
exists between the variables GT GPI (sig. 0.002).
Table 6. Regression Analysis 2
Standardized
Unstandardized Coefficients
Model

B

Std. Error

1 (Constant)

11.861

1.759

GPV

.274

.130

GPR

-.301

.139

Coefficients
Beta

T

Sig.

6.742

.000

.220

2.104

.038

-.227

-2.166

.033

a. Dependent Variable: GT
The data in Table 6 address the regression coefficients on variables
GPV (0.220) shows a positive value, ie the direction of a significant
relationship exists between the variables GPV GT (sig. 0.038), meaning
that if the GPV better then GT will increase. While the regression
coefficient on the variable GPR (-0.227) shows a negative value, ie there is
a significant inverse relationship between GPR against GT (sig. 0.033),
meaning that if GPR higher then the GT is getting down.

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CONCLUSIONS AND SUGGESTION
A. CONCLUSIONS
1. The Green Perceived Value has a positive relationship to the Green
Trust.
2. Green Perceived Risk has a negative relationship to the Green Trust
3. Perceived Green Trust has a positive relationship to the Green Purchase
Intentions.
4. The Green Perceived Value has a positive relationship to the Green
Purchase Intentions.
5. Green Perceived Risk has a negative relationship to the Green Purchase
Intentions.
B. SUGGESTIONS
If companies want to adopt a successful green marketing, green
marketing concept should integrate into all aspects of marketing activities
on a regular basis and do green marketing strategies better.This study has
several limitations, among others, from the aspects of sampling, the data
obtained can not describe the behavior of these consumers so it is advisable
for future studies to fix it and because of the persistence of variables outside
of the research that affect green purchase intentions, because will improve
the generalization of research results as well as having a higher value of
benefits.
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