Purpose: The growing interest in environmental issues makes businesses starting to incorporate a label to emphasize that their product is eco-friendly. This label is often called an eco-label. From the business point of view, an eco-label helps to highlight the green features of products in a visual way. Meanwhile, from the customer’s perspective, eco-label helps support the decision-making process concerning environmental products. In this study, we investigate the influence of attitude towards the environment, the trust of eco-labels, and pro-environmental consumer behavior (PECB) towards purchase intention of eco-labeled products. Furthermore, we compare the model in a developed country (Norway) and a developing country (Indonesia).
Design/Methodology/Approach: This study uses two survey companies, one for each country, to help distribute the survey to get an equal contribution from the respondents. Data were collected from 225 respondents in Norway, and 208 respondents in Indonesia. We analyze the conjoint part of the survey in Sawtooth Software and use structural equation modeling (SEM) to test the hypotheses.
Findings: Our findings suggest that in Norway, the attitude towards the environment and trust of eco-label have a positive significant relationship towards purchase intention, while PECB does not. In Indonesia, the attitude towards the environment, trust of eco-label, and PECB do not have any influence on purchase intention. That being said, the model works better in a developed country than in a developing country.
Limitations and Research Implications: In this study, we only intend to compare how the model works in developed and developing countries. This study does not have any intention to find the reasons why the model works or does not work in that specific country.
Practical Implications: The main findings of the study gives an insight to businesses on which factors influence consumers to purchase an eco-labeled product and how to treat the consumers in developed and developing countries. Moreover, from the conjoint part of the study, the business can see the most important element to be looked at when creating an environmentally friendly product.
Keywords: Attitude towards the environment, the trust of eco-label, pro-environmental consumer behavior, purchase intention.