Green behavior in organic products: Policies approach

Abstract

Nowadays, consumption patterns based on green products are pretty popular and have become a choice for various social strata. The study of the factors that influence consumer decisions, including how satisfaction is creating, has been widely discussed in empirical research. There are two approaches to observing this phenomenon: the Servqual theory approach and the marketing mix approach. This study empirically examines how the marketing mix elements can contribute to customer satisfaction and loyalty in green products, especially organic vegetables, in the Yogyakarta region. We want to see from this phenomenon the most substantial element that contributes to customer satisfaction. The data collecting with a questionnaire that distributing with snowball sampling with 80 respondents selected; however, only 65 questionnaires can be processing due to missing and outlier data. With Moderated Regression Analysis, this study found that satisfaction is the quasi moderator in the relationship between marketing mix variables and customer loyalty and conclude that marketing mix elements cannot affect customer loyalty directly but must moderating by satisfaction. Post hoc analysis with policy review also enriched this result of the study and found the dearth of policies supporting the trading mechanism in organic products. This study recommends that the government prepare policies about certification scheme and organics trading mechanism favours farmers.