Consumer Behaviour: Impact of Social and Environmental Sustainability

Abstract

Sustainability, along with the increasing importance of the Sustainable Development Goals (SDGs), is collectively a booming phenomenon in good economic development. SDGs describe a universal agenda that applies and must be implemented by all countries, and Indonesia is adopting and implementing the SDG concept to achieve it by 2030. To implement SDGs in Indonesia, there are three challenges that must be faced, namely, communication strategies to the community, financing for implementing SDG programs, and strategies for preparing regions to adopt SDGs in each city. One of the efforts currently being intensified by consumers in Indonesia is consumer concern for the sustainability of the environment where they live. To date, there is still little empirical research in Indonesia about how far consumers care about the environment and their perceptions of green products. By knowing their perceptions and behaviours related to green products, companies and governments will be able to formulate appropriate strategies. The purpose of this research is to determine the impact of social sustainability and environmental sustainability on brand reputation, brand trust, and ultimately purchase intention. Using survey methods and purposive random sampling techniques to collect respondents, 196 respondents in the Special Region of Yogyakarta Province, Indonesia, were given a questionnaire on the respondents’ opinions of the five construct variables above. After applying the structural equation modelling technique, goodness of fit tests and structural relationship hypothesis tests were carried out. The results show that social sustainability affects brand reputation, but environmental sustainability does not significantly influence brand reputation. Brand Reputation positively and significantly affects Brand Trust, and ultimately, Brand Trust significantly influences Purchase Intention. The implication of this research is the need for companies to be aware of social problems in developing countries and develop strategies that pay more attention to workers, social conditions in society, and decent wages so that consumer attitudes can become more positive towards green products and their support for the SDGs becomes more real.