Feliks Anggia Binsar Kristian Panjaitan, Hommy Dorthy Ellyany Sinaga

Consumer Responses to Sustainable Product Labeling (Eco-label) in Purchasing Decisions

Introduction

Consumer responses to sustainable product labeling (eco-label) in purchasing decisions. Discover how eco-labels influence consumer purchasing decisions in Indonesia. This study examines eco-label perception, trust, and environmental awareness for sustainable buying.

Abstract

This study examines consumer responses to sustainable product labels (eco-labels) and their influence on purchasing decisions in Indonesia. Using a quantitative research design, data were collected from 150 respondents through a structured questionnaire with a 1–5 Likert scale. The data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS 3) to evaluate both the measurement and structural models. Results indicate that eco-label perception has a significant positive effect on consumer trust and purchasing decisions. Furthermore, consumer trust plays a mediating role, strengthening the relationship between eco-label perception and purchase behavior. Environmental awareness also emerged as a strong determinant of purchasing decisions, showing that consumers who are more environmentally conscious are more responsive to eco-labels. The model demonstrated substantial explanatory power (R² = 0.62) for purchasing decisions, confirming the importance of eco-labels, trust, and awareness in shaping sustainable consumer behavior in Indonesia. These findings provide practical implications for businesses and policymakers in promoting eco-labeled products and fostering sustainable consumption.

Review

This study provides a valuable examination of consumer responses to sustainable product labels (eco-labels) and their influence on purchasing decisions within the Indonesian context. Employing a quantitative methodology with data from 150 respondents analyzed through SEM-PLS, the research adeptly dissects the intricate relationships between eco-label perception, consumer trust, and actual purchase behavior. The preliminary findings highlight a clear positive effect of eco-label perception on both consumer trust and purchasing decisions, with consumer trust further serving as a critical mediator. This robust model, boasting substantial explanatory power (R² = 0.62), offers a strong foundation for understanding sustainable consumer behavior in an emerging market. A significant strength of this research lies in its comprehensive model, which not only establishes direct and indirect effects but also underscores the pivotal role of environmental awareness as a strong determinant of purchasing decisions. This multi-faceted approach provides a nuanced understanding of why consumers opt for eco-labeled products. The selection of SEM-PLS 3 as the analytical tool is appropriate for the proposed structural relationships, lending credibility to the statistical conclusions. Furthermore, by focusing on Indonesia, the study addresses a critical geographical gap in the literature, offering practical and culturally relevant implications for businesses and policymakers striving to foster sustainable consumption habits within the region. While the abstract presents compelling findings, an expert reviewer might consider areas for further elaboration. The sample size of 150 respondents, while potentially sufficient for SEM-PLS, could benefit from a discussion regarding its representativeness across Indonesia's vast and diverse consumer landscape, particularly in relation to generalizability. Further detail on the specific measurement items for "eco-label perception" and "environmental awareness" would provide deeper insights into the underlying constructs and enhance the practical applicability of the findings. Future research could explore qualitative dimensions of eco-label interpretation, investigate cross-cultural comparisons, or delve into potential moderating effects of product categories or socio-economic factors on these relationships to build upon this solid foundation.

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