Smoothing Spline Nonparametric Path: Application for Green Product and Green Marketing Strategy towards Green Product Purchasing Intention

Abstract

Objective of the study is to analyze how much influence Green Product has towards Green Marketing Strategy and influence of Green Product & Green Marketing Strategy towards Purchasing Intention of The Body Shop in Malang. The analysis method was smoothing spline non-parametric path analysis. Path analysis is one of the multivariate techniques observing cause and effect correlation between exogenous and endogenous variables in order to find the most efficient path. However, when linearity assumption has not been identified yet or regression curve is unknown, the model cannot accommodate an unidentified regression function. Therefore, non-parametric path analysis is developed since the analysis is derived from the non-parametric regression analysis. Based on the findings, it can be concluded that (1) Green Product (X1) has influence towards purchasing decision (Y), (2) Green Product and Green Marketing Strategy has influence towards purchasing decision and (3) Green Marketing Strategy (X2) has influence towards purchasing decision (Y).