The intention to adopt a green product (a study on a green fuel product (pertalite))

Abstract

Indonesia Government through Pertamina Co. Ltd has launched a new fuel product, namely Pertalite that is more environmentally friendly than the previous one (premium). Premium is 88 octanes gasoline that is less environmentally friendly than Pertalite (90-octanes). Low-octane gasoline causes the inefficiency in usage so that more carbon will be released into the environment which contributes to global warming. Unfortunately, the premium consumption is still relatively high, which became the background of this research. The purpose of this study is to examine the influence of variables affecting the intention of adoption of environmentally friendly fuel product. This study is a survey that was conducted in Surakarta City, Indonesia by purposive sampling method. The criteria of respondents are the people who know the difference between premium and pertalite gasoline. Testing instruments and testing data used Structural Equation Modelling-Partial Least Square (SEM-PLS) method. The result showed the t-score of SEM-PLS analysis for the price fairness, relative advantage and product knowledge were 3.057, 9.134, and 4.668, respectively, hence influenced the attitude toward adoption. That scores are more than cut off 1.96 in T table with significance level 5%. Furthermore, attitude toward adoption influenced the intention of adoption with t-value 17.903.