Impact of Producer’s Environmental Performance on Consumers and Retailers Simultaneously in the Indonesian Retail Environment

Abstract

Producers improve environmental performance to reduce the release of post-production waste. The positive environmental performance of producers is expected to influence consumer environmental attitudes positively, specifically toward post-consumption waste. However, research is deficient in exploring the impact of producer environmental performance (PEP) on retailer-consumer relationship quality (RCRQ) and consumer purchasing behavior (CPB) simultaneously to drive consumer environmental attitude (CEA) in the retail environment. Therefore, this study aims to examine the effect of PEP on RCRQ and CPB simultaneously to drive CEA in the retail environment. The survey was conducted at 17 retail outlets for 150 consumers of lubricant producers in the industrial city of Gresik, Indonesia. Partial Least Square analysis indicates that consumers perceive PEP has positive effects on CEA, but negatively affects RCRQ and positively affects CPB. Thereby, CPB has a more significant positive effect than RCRQ on CEA. Although RCRQ and CPB have significant positive total effects, CPB has a more significant indirect effect than RCRQ in mediating the effect of PEP on CEA. This study provides actionable guidance to reduce the negative impact of PEP on RCRQ to enhance the mediating role of RCRQ for more positive consumer environmental attitudes.