Green Marketing: Fostering the Customers Willingness to Buy Green Product in Indonesia

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1 Green Marketing: Fostering the Customers Willingness to Buy Green Product in Indonesia Lalu Edy Herman* Doctoral Program, Diponegoro University Erlangga Tengah 17 street, Semarang, Central Java, Indonesia *Corresponding ehlalu@gmail.com Abstract The current issue of business trends are concerning on environmental sustainability. The marketing concept has been formed into a social marketing and environmental friendly that must be followed to exist in a business competition. Although the banking sector is not directly damaging the environment, but banks can not behave passively in response to these conditions by making efforts in ensuring the earth sustainability including social empowerment to improve the welfare of the community. The purpose of this study is to build the model and evaluate the effect of green marketing to buying behavior among bank customers in Indonesia. The research design used in this study is descriptive research design. Data was collected by survey method through structured questionnaire with ten point rating scale. The survey questionnaires were collected to 150 respondents of bank customers in Indonesia. The questionnaires were processed and analyzed with the Structural Equation Modelling (SEM). Keywords : Green marketing, environment-friendly product, green attitudes, green purchase intention. 1. INTRODUCTION The current issue of business trends reinforce each organization to better care for the 3P concept consists of People, Planet and Profit. The marketing concept has been formed into a social marketing and environmental friendly that must be followed to exist in a business competition that is getting more competitive by holding the concept of sustainability. The new paradigm shift in the public awareness and concern increases for the environment over the last decade, attention to sustainable development and green marketing is a major issue at this time (Chen & Chang, 2012). The environmental conditions continue to deteriorate, it has attracted the attention of people in developed countries and currently followed by the developing countries to realized that to the green movement. The issues concerning environmental sustainability and business have an increasingly strong linkages now. Many cases are arising about the severe environmental damage due to unethical business practices in disposing of hazardous industrial waste. That much was due to many companies in Indonesia which have a low awareness of the importance of environmental sustainability and the other side the weak of government role and the community in assisting unethical business practices. The purpose of this study is to build the model and empirical test to reach the Indonesian people awareness for the green banking product and service as a new competitive strategy. This paper tried to know how the Indonesian customers choose the banking products through the high degree of perceived government legislation, green advertising awareness, and green knowledge to form the green attitudes despite the relatively high purchase intention. Green Marketing is a new focus on business ventures and start sticking to the attention of many people now (Byrne, 2003). Green marketing arose as a result of the e-issn

2 growing group of environmentally conscious society in day to day consumption behavior, or known as green consumers. The consumer awareness increase for the form of environmentally consumption, also increase the demand for environmentally friendly products or green products. Green product or also known as ecological product is an environmental friendly products that contain components that are safe, non-toxic, recyclable, and using environmentally friendly packaging to reduce the negative impact of the product consumption on the environment (Shamdasami et al., 1993). The customers demand for the green products have encouraged manufacturers to change their business orientation, taking into the ecological aspects besides the economic aspects. The emergence of public awareness was greeted by the company to implement the environmental issues as one of its marketing strategy or know as green marketing. It is also in accordance with the increasing attention to environmental issues by public regulators can be seen as another indication that environmental concern is a potential area as a business strategy (Menon & Menon, 1997). The emergence of many negative effects of business practices on the environment and the direct impact felt by the people was rise the green consumerism. The foreign banks and others banking institutions in the Indonesian neighboring country implemented the green banking, even they have included in their annual reports. Panjaitan (2013) stated that in the world level, among others HSBC and ANZ have been implemented the principle of sustainable business. BNI 1946 is an Indonesian state bank became the only one of a national bank from Indonesia who became the Global Steering Committee on the forum for the United Nations Environment Programme Finance Intiative (UNEP FI) in February 2007 (Sardono, 2013). Furthermore, since 2008, the bank was officially declared BNI Go Green, which is not limited to just a slogan but operated their business based on environmental friendly activities. BNI 1946 has sought the green campaign both in the internal and external environment. Internally, BNI 1946 involves all employees in green behavior, not only as a form of support but actually implemented in corporate life, such as pursuing the green lifestyle through the bike to work and build bicycle parking. Externally, BNI 1946 was introducing the products and service to support the environmentally friendly products through portfolio financing to the customer or the company in the green project support. Further, BNI 1946 has a green building product that offering to their customers and paperless choice for the Automatic Teller Machine (ATM) transaction. Meanwhile, the Indonesian banking system application of green banking is still voluntary, not mandatory (Panjaitan, 2013). The banking are expected to focus more on the provision of credit to businesses that do not result in environmental damage, leading to sustainable business and accepted by society. 2. LITERATURE REVIEWS 2.1 Government legislation According to Peck and Gibson (2000), in anticipation of increasing global demand for green marketing, services and systems it is an obligation and an opportunity for the government to be proactive. Although there is an important role for government in facilitating the transition economies are much more efficient, more equitable and reduce environmental damage. The government has a position as a regulator should be in a stronger position to set the agenda and define roles for industry and citizens. Countries are left to address the trend of green economy will inevitably face a competitive disadvantage and lost many opportunities. Therefore, the growing of public concern for the environment will create high pressure to the government to act more on market initiatives and cost effectiveness of control through the regulation and make a huge difference to industry, consumers and the general economy e-issn

3 (Tahmassebi, 2003). In the case of all activities related to the marketing by Polonsky (1994), the government wants to protect consumers and the public, these protections have significant implications on green marketing. Government regulations pertaining to environmental issues-based marketing designed to protect consumers in several ways, including (a) reduce production of harmful goods or by-products, (b) modify consumer and industry's use and/or consumption of harmful goods, (c) ensure that all types of consumers have the ability to evaluate the environmental composition of goods. In some cases government try to persuade consumers to become more responsible. According to the World Bank, Green Bank is a financial institution that gives priority to sustainability in its business practices. In this understanding of green banking consists of four life elements, those are nature, well-being, economy and society. The green bank will combine the four elements earlier in the principle of businesses care for ecosystem and the quality of human life. So, in the end that appears is the output of the company s operational cost efficiency, competitive advantage, corporate identity and strong brand image as well as the achievement of a balanced business. Green banking is a long-term business strategy that aims for profit also scored in addition to the benefits of empowerment and sustainable environmental conservation. The banking business adaptation can be done on the side of lending, funding and services with financing in the eco-friendly projects sector. The green banking development required the seriousness of all stakeholders in the country through a policy of the Indonesian government that represented by Bank of Indonesia on environmental management. It will be supported by the strong commitment from the executive ranks of the bank and optimal internalization from the entire of bank environment and employees. Panjaitan (2013) stated that Indonesian Central Bank (Bank Indonesia) as a representative of Indonesian government in regulating the banking has governed the banking business but do not yet have the complete regulatory aspects of environmental sustainability. The updated regulation was published on Bank Indonesia Regulations no. 7/2/PBI/2005. The regulation was regulated only a few of the environmental aspects in particular Article 11, paragraph 1, concerning the bank needs to pay attention and the efforts made by the debtor to preserve the environment. The Banking Act explicitly have included the obligation of banks in Indonesia to implement the green banking and its accordance to the national banks to participate in conservation and environmental responsibility. Financing in the environmental projects has been shown to improve the competitiveness and provide distinctive advantage for banks that implement that business strategy (Abdullah, 2004). H 1 : The higher degree of Government legislation perceived, the more green attitude. 2.2 Green advertising Green marketing defined as actions carried out by organisations that are apprehensive about the ecology or green problems by providing the environmental friendly goods or services to bring satisfaction among customers and the community (Polonsky, 1994). Thus green marketing incorporates a broad range of activities, including product modification, changes to the production process, packaging changes, as well as modifying advertising. By definition, green marketing refers to the specific development, pricing, promotion and distribution of products based on environmental benefits and the harmony between human and nature, aimed at achieving the coordinated development of society, economy and ecological environment Promotion is one component of the marketing mix is generally performed by the company. Green promotion focuses on the activities of the company to campaign for programs that raise the issue of the environment, to reinforce their image as an environmental friendly company (Peattie & Crane, 2005). This promotion can be done through advertising, sales promotion, and public relations. Many retailers are beginning to realize the importance of commitment to the environment by promoting the use of eco-friendly bags instead of plastic e-issn

4 bags. Terms such as phosphate free, recyclable, refillable, ozone friendly, and environmental friendly are phrases that most often promoted as green marketing. The key to successful green marketing is credibility. By not exaggerate environmental excellence in product or establish unrealistic expectations on the customer, then the communication of environmental excellence is done through characters who can be trusted. Advertising is one of the components of the promotional mix, which are direct advertising, personal selling, sales promotion and publicity. Advertising is a form of non-personal promotion using a variety of media that is intended to stimulate purchases. Advertising offers a product to consumers by way of the reasons to buy. Green advertising is advertising that environmentally zoom. Advertising models may include a series of elements that are used to communicate the concerns of a company or product to the environment (Karna et al., 2003). The advertising oriented environment can contain one or more of the following: green color, landscapes, eco-labels, environmental stewardship statement, treatment of raw materials, production processes that are environmentally friendly and can be recycled. A product made by a company, has a stack of features that can be used as the claims in the advertising. In the social context, there are some good environmental behavior to be applied. The behaviororiented prevention of environmental pollution are summarized in 3R (Recycle, Reuse and Reduce). In addition an environmental advertising arguably if it meets one or more of the following criteria (Karna et al., 2003), such as: a. Either explicitly or implicitly suggests a relationship between the product or service biophysical environment. For example, mentioned that the advertised product containing a low carbon footprint so as to contribute to lowering global warming or not containing CFCs that is safe for the preservation of the ozone layer. b. Promote an environmentally friendly lifestyle. For example, use public transport instead of private vehicles to reduce the use of fossil energy or planting trees around the home to reduce carbon dioxide. c. Presenting a corporate image of environmental responsibility that contain, for example, raises certificate ISO 14001, eco-labeling or carbon footprint in its advertising. H 2 : The higher degree of green advertising awareness, the more green attitude. 2.3 Green knowledge Knowledge involves a change in one's behavior arising from experience. Kotler and Amstrong (2001) outlines, the knowledge generated through (1) drives, which is a strong internal stimulus that motivates action, (2) directive, which is minor stimuli that determine when, where, and how one's response is based on knowledge of alternatives available to respond the encouragement (3) response, which is a reaction to the user through the formation of attitudes on the basis of the decision values obtained, (4) reinforcement, the follow-up and feedback through the part that reinforces attitudes. Kempton et al. (1995) notified that most people do not know enough about environmental issues to act in an environmentally responsible way. Environmental knowledge can be defined as a general knowledge of facts, concepts, and relationships concerning the natural environment and its major ecosystems (Fryxell & Lo, 2003). In other words, environmental knowledge involves what people know about the environment, key relationships leading to environmental aspects or impacts, an appreciation of the whole systems, and collective responsibilities necessary for sustainable development. Rokicka (2002) found that attaining a high level of environmental knowledge produces much better pro-environmental behavior. Concordantly, Mostafa (2009) found that environmental knowledge has a significant impact on the consumers intention to buy green products. e-issn

5 H 3 : The higher degree of Green knowledge, the more green attitude. 2.4 Green attitude Green attitudes identified as an individual's attitude with regard to the protection and promotion of the environment. Green marketing depends on the consumer attitudes toward the environment. If there is no strong demand for it, the company must strive harder in introducing green products and services to shift consumer attitudes. Green attitudes concern are rooted in a person s concept of self and the degree to which an individual perceives him or herself to be an integral part of the natural environment (Schultz & Zelezny, 2000). Attitude represents what consumers like and dislike (Blackwell et al., 2006). According to Mansaray and Abijoye (1998) the quality of the environment critically depends on the level of knowledge, attitudes, values and practices of customers attitudes; which are the most consistent explanatory factor in predicting the customer willingness to pay for the green products (Chyong et al., 2006). Personal norm is the feeling of moral obligation of customers. The customers feel morally obligated to protect the environment and to save the limited natural resources on the earth. The role played by the government in environmental protection is undeniable. The most significant factor affecting the nature was not the official government policy but the public awareness on the environmental problems (Chukwuma, 1998). Many people have high ecological concern but have the sentiment that the preservation of the environment is the prime responsibility of the government (Chyong et al., 2006). H 4 : The higher degree of green attitude, the more green purchase intention. 2.5 Green purchase intention Mowen and Minor (1995) expressed the interest in buying is a tendency of consumers to buy a brand or take action relating to the purchase of which is measured by how likely consumers make the purchases. The definition is similar that proposed by Peter and Olson (1999) which defines buying interest as the tendency of consumers to buy a brand or take action relating to the purchase of which is measured by how likely consumers make purchases. Based on the previous buying interest explanation, it can be concluded that the buying interest is a planning process of the product purchase that will be made by the customer with consideration in several things, including quantity of the product is required within a certain time period, brand, and consumer attitudes in consuming products. The intention to buy is often used to analyze the customer behavior. Before making a purchase, customer typically will collect the information about the products that are based on personal experience and information derived from the environment. Once the information is collected, then the customer will begin to make an assessment of the product, evaluate and make purchase decisions after comparing and considering the products. Purchase intentions by Ajzen and Fishbein (2001) described as a situation of a person before doing any act that can be used as a basis for predicting the behavior or action. According to Assael (1992) purchase intention is a behavior that merged as a response to an object that shows the customer wishes to make a purchase. Based on some of the above purchase intention definitions, can be taken a conclusion that: a. Purchase intentions indicate how far people have the willingness to buy b. Purchase intention measurement will indicate someone in purchasing c. Purchase intention associated with the ongoing buying behavior Schiffman and Kanuk (2007) state that motivation as a power boost from within the individual that forced them to take action. If someone has a high motivation towards a particular object, then they will be compelled to behave in the product master. Conversely, if motivation is low, e-issn

6 then they will try to avoid the object in question. Implications for marketing are likely the person is interested in buying a product or brand that is offered or not. Based on the literature review above, the proposed research model shown the effect of perceived government legislations, green advertising awareness, and green knowledge as a pattern of green attitude for the bank customers in Indonesia to respond the bank green marketing strategy for the objectives to attract the green customers purchase intention. All the hypotheses are summarized in the following research framework as presented in Figure 1 below. Figure 1: Model of green banking consumers purchasing Perceived Government Legislations H1 Green Advertising Awareness H2 Green Attitude H4 Green Purchase Intention Green Knowledge H3 3. METHODOLOGY 3.1 Types of research Type of research to be conducted in this study is predictive research. Predictive research by In this study, researchers tried to explain the effect of government green legislations perceived, green advertising awareness, and green knowledge to green attitude in Indonesian green banking consumers. 3.2 Population and sampling The study was conducted with population of the customers from 6 of the biggest state and private banking in Indonesia. The study collected 150 usable questionnaires from 150 respondents with convenience sampling method from three cities in Indonesia. This amount meets the minimum criteria standard sampling which is five times larger than the estimated parameters based on Maholtra (2004). e-issn

7 3.3 Sources of data This study uses primary data obtained from questionnaires distributed directly to 150 the customers from 6 of the biggest state and private banking in Indonesia in the city of Yogyakarta, Solo and Semarang. The data was collected through a survey, which is conducted by asking respondents. Survey methods in research carried out by using the research instruments such as questionnaires with open and close questions consisting of items representing the independent variable and the dependent variable. Questionnaire or list of statements contained 5 items that represent the identity of respondents, with 12 items representing the independent variables, 4 items for intervening variable, and 4 other items representing the dependent variable. Questionnaires were distributed to the respondents directly, so that the respondent can give the score and short answer from the open question available. The questionnaire has been designed using the Likert scale by assigning weights to the value of the answer (1) Very Disagree to (10) Strongly Agree. This part describes the basic measurement of the most important variables for this study. In the following subsections the operationalization of each of the key variables and indicators used in this study are as presented in the Table 1. Table 1: Variables and indicators Variables Perceived Governments Government are not imposing Regulation strict laws and regulations in protecting and controlling the Green Advertising Awareness Green Knowledge Green Attitude Green Purchase Intention environment Entertainment Green Heard about green products Describe as environmentally responsible Intention to buy green product Reduce production of harmful goods Informativeness Green Aware about green products Care about green products have plans to buy green products in the future Indicator Modify consumer and industry's use Irritation Green Aware that green products contribute to the sustainable future Has efforts to buy green product to buy green products than non-green products Consumers have the ability to evaluate the environmental composition of goods Credibility Green Aware to use green products Concern about current environmental Possibility to buy green products is very high 3.4 Testing research instruments Construct validity is used in this research. Construct validity indicates how well the results obtained from the use of a measure in accordance with the theory used to define a construct. Based on Ghozali (2006), validity testing conducted by Confirmatory Factor analysis. The result shows that the value of factor loading is > 0.4, this means that the research instrument is valid. Reliability in this study was measured using Cronbach's Alpha. If the value of Cronbach's Alpha> 0.6, then the research instrument can be said to be reliable. e-issn

8 4. RESULTS AND FINDINGS A total of 150 respondents were obtained through a convenience sampling approach. Table 2 shows the respondents profile. Out of 150 respondents, 62 percent are male and 38 percent are female respondents. Also, there are 7.33 percent respondents in the age range between 20 to 30 years old. Furthermore, most of the respondents (64 percent) are under graduate education level, percent from high school degree, and then followed by post graduate with 7.33 percent. Moreover, it clearly indicates the long period to be a bank customer that most of the respondents (67.33 percent) are 0 3 year, then percent for years of bank customer and more than 5 years customers only represented by 7.33 percent. On the other hand, the customer job characteristic is dominated by self-employee around percent, followed by civil servants 40 percent, and unemployed background around 4.67 percent. Table 2: Description of respondents Item Description Frequency N=150 Percentage (%) Male Gender Female Age Job Education Level Period of bank customer years old years old > 40 years old Unemployed Self-employee Civil servants High School Under graduate Post graduate years years > 5 years To validate the measures of the constructs, a series of Confirmatory Factor Analysis (CFA) using AMOS 20.0 was conducted to test the dimensionality, reliability and convergent validity of the measured items. In the confirmatory factor analysis phase aims to test a concept that is built by using the dimensions form the latent variables in the study. The data processing for confirmatory analysis shown in Table 3. A test performed was to test unidimensionality of each variable forming latent. CFA for the individual constructs were conducted at the initial on stage one for the measurement model per construct. In the stage two, all constructs were simultaneously tested to obtain the overall measurement model. Based on the construct reliability by estimating Cronbach's alpha coefficient, composite reliability score, and average variance extracted. It was found that all constructs have alpha values and composite reliabilities scores that are equal to or exceed 0.7. Moreover, the average variance extracted for all constructs is equal to or greater than 0.5, satisfying the recommended thresholds. So, we can take the result of all measurement scales possess good levels of reliability. Table 4 shows the goodness fit of the model propose in this research that represented by the result of test compares with the minimum requirement scales. Table 5 shows the results of the overall measurement model containing factors for all constructs. The fit indices collectively shows the adequate fit index of the measurement model with the data (Hair et al., 2010). In e-issn

9 the stage three, the final constructs were proposed simultaneously tested step to obtain the structural model analysis. Table 3: Measurement scales and reliability VARIABLE Government Legislation Perceived (α=.87; CR=.97) (Ten-point scale, anchored by Strongly Disagree and Strongly Agree ) x1 x2 x3 x4 Standardized INDICATOR loadings Government has strict green banking regulation Reduce the productions of harmful goods Modify the customer and industry s use Customer have the ability to evaluate the environment Green Advertising Awareness x5 Meaningful in green entertainment (α=.76; CR=.88) (Ten-point scale, anchored by Strongly Disagree and Strongly Agree ) x6 Innovativeness in green behavior 0948 Selective in green imitation x7 products x8 The green credibility perceived Green Knowledge x9 Ever heard about green product (α=.78; CR=.93) (Ten-point scale, anchored by Strongly Disagree and Strongly Agree ) x10 Aware about the green product Aware the green product x11 contribution to the environment x12 Aware to use green product Green Attitude (α=.89; CR=.82) (Ten-point scale, anchored by Strongly Disagree and Strongly Agree ) x13 Dare to be environmentally responsible x14 Care for the green product x15 Has efforts to use green product Concern about current x16 environment condition Green Purchase Intention x17 Willingness to buy green product e-issn

10 (α=.93; CR=.78) (Ten-point scale, anchored by Strongly Disagree and Strongly Agree ) x18 x19 x20 Have plans to buy green product in the future Have effort to buy green than nongreen product Higher possibility to buy green product Table 4: Goodnes of fit index Score Remarks Chi-Square Fit Probabilities Fit Goodness-of-Fit Index (GFI) Marginal Root Mean Square Error of Approximation Fit (RMSEA) Tucker Lewis Index (TLI) Fit Comparative Fit Index (CFI) Fit Adjusted Goodness-of-Fit Index (AGFI) Marginal The results of testing the feasibility of the model in the confirmatory analysis of exogenous and endogenous variables indicate the feasibility of the models. It can be seen in the Table 4 where the numbers goodness of fit index contained in the results column if the data meet conditions shown in the cut off value. Thus the mean constructs were used to establish a research model have met the eligibility criteria for a model. Probability value on this analysis is above the limit of significance is above The figure indicates that the null hypothesis stating that there is no difference between the sample covariance matrix and the estimated population covariance matrix cannot be rejected and therefore the null hypothesis is accepted. This result gives strong grounds where existing constructs in the model can be accepted. Processing results which showed that each indicator or dimension measuring each latent variable gives good results, ie the value of critical ratio (CR - which is identical to the value of t-count) above Table 5: Standardized path coefficients for the structural model Estimate C.R. Hypothesis Test Green Attitude Green Advertising Awareness Supported Green Attitude Green Knowledge Supported Green Attitude Government Perceived Legislation Supported Green Intention Purchase Green Attitude Supported e-issn

11 The overall fit measures of the full model in the SEM indicates that the fit of the model is acceptable (GFI = 0.781, RMSEA = 0.106, AGFI = 0.718, CFI = 0.948, and TLI = 0.965). All of the paths estimated are significant, and all hypotheses are supported in this research. Adding more paths in the research framework would not significantly improve the fit measures. The residuals of the covariance are small and center near 0. The results of the full model in this study are shown in Figure 2. All five paths estimated are significantly positive. Therefore, H1, H2, H3, and H4 are all supported in this research. We find out that the increase of government legislations perceived, green advertising awareness, and green knowledge affect to green attitude and then increase the green purchase intention. Based on the above research results, we suggest that the Indonesian banking should raise their green marketing strategy to enhance their customers move to green attitude as a banking competitive advantage. Figure 2 explain the significant effect of each variable to influence the green purchasing intention of the Indonesian banking customers. Figure 2: The results of the full model 5. DISCUSSION The main objective of the research is to empirically test the influence of green marketing strategy of banking industry, especially on green advertising awareness, green knowledge of customer and supporting of government legislation on the customer green attitude to influence the green purchase intention of product and services of bank. This study contributes to the extant literature and the model propose to build the banking strategy to explore it business strategy on green customers segment establishing the competitive strategy in the tight banking competition. The results of this paper based on the Figure 2 suggest that, green advertising awareness has greatest potential to influence the green attitude in Indonesian bank customers to intend in choosing and using green products from the banks. However, similar to previous research, consumers who are more proactive with their environmental behaviors also have better attitudes toward green advertising (Haytco & Matulich, 2010; Lee, 2008). The results imply that green advertising may be best at reaching those who are already practicing green behaviors. The customer green attitude also positively influence consumer purchase e-issn

12 intention of green products. According to Ajzen and Fishbein (1991), the more positive attitude consumers have toward a behavior, the stronger intention the consumers will have to perform the behavior under his or her control. In this study, the Indonesian bank customers intentions to use the green product are strong as their attitudes toward green advertising are positive. While the customers optimistically respond to green advertising, the companies and their products, the firms should stress their environmental actions, which will allow consumers to differentiate between green firms and non-green firms as green products are in demand. Perceived government legislation is still needed by the customers of the bank in Indonesia to set clear about the concept of green product. Banking in Indonesia could maximize their green marketing strategy through advertising to raise the awareness of customer behavior using green products and services. Purchase intentions for green product and process strategies are significantly higher than non-green approaches. However, post-hoc analysis shows no significant advantage of one green strategy over another (Borin, et al, 2013). Green knowledge was not very influential in shaping the attitude of green banking customers in Indonesia, because basically customers already know about the importance of green behavior, but a boost in its direction is still not visible. 6. CONCLUSION AND IMPLICATIONS 6.1 Conclusion People should preserve the environment by participating in giving back to the environment as a manifestation of their responsibility to the environment and future generations. The tendency to consume green products is one way to achieve public awareness of environmental safety. Banking in Indonesia should first consider environmental aspects in creating the products and services offered to its customers. Consideration will be profitable for banks because the product is more desirable to be a competitive advantage. The existence of green consumers in Indonesia gives opportunities for banks to expand their business in an environmental friendly product. Over the past few decades large number of people state that they are becoming more and more concerned about the environment and environmental problems (Diekmann & Franzen, 1999; Dunlap & Mertig, 1995). Concerns about environmental dreadful conditions have been increasing as revealed (Chan, 1999). In the marketplace, environmentalism has become an important topic because customers now have understood that protecting the environment is essential for them (Kalafatis, 1999). Today, customers are ever more aware of negative effects of environmental degradation, becoming more environmental conscious and want to buy green products and services. Consumers now increasingly favor those businesses that are engaged in environmental practice and produce eco-friendly products (Roberts, 1996). The government should urge the community to promote environmental movement and create rules that can bind to the banks in Indonesia to further consider the environmental aspects of its operations and the products and services it offers. 6.2 Implications The study provides several implications to the marketing knowledge as a green marketing model in developing countries to improve the firm performance and for banking industry in Indonesia to develop and implement the green marketing strategy to influence the Indonesian bank customer on green attitude and willingness to use the green product and services as a new strategy to win the competition. First, the banking sector can be a part of a strategic move environmental conservation, with more focus to demonstrate commitments to care the environment that is expected to be a differentiating strategy with its competitors. Banks can develop the concept of green through e-issn

13 green advertising as a communication way with their clients regarding campaign activities for programs that raise the issue of the environment that can strengthen the image as an environmental friendly bank. Promotion can be done through advertising, sales promotion, and public relations. Second, green marketing is an important issue for banks, as well as society as consumers are increasingly concerned about using the banking green product and services. Green banking is a long-term business strategy that aims other than profit which is sustainable environmental conservation. Green marketing strategy of banking can be done consistently, educate their customers, strengthen the credibility of the bank, and engage customers in green banking activities. Third, the existence of a clear regulation of the government to support the green movement in banking with clear details regarding the list of business sectors anything worthy to be financed by the bank in relation to environmental aspects. The policy can be applied naturally with the rewards for green banking can apply in the banking business. This will give confidence to customers to use green products and banking services. 7. LIMITATIONS AND FUTURE RESEARCH The limitations of this study are as follows: The sample used in this study were respondents as general who direct and indirectly use the green banking products and services, so that the general perception of green products can not be known. The future research should also include the subjective norm, as it is essential for the government to understand the green behavior of its people to foster a favorable attitude towards the environment among Indonesian banking customers to compare its impact with personal norms on the customers attitudes towards green products. References Abdullah, B. (2004). Peran Serta dalam Pengelolaan Lingkungan Hidup Meningkat, Gubernur Bank Indonesia, Jakarta. Siaran Pers Bersama Bank Indonesia dan Kementerian Negara Lingkungan Hidup, 8 September 2004). Retrieved from dan-non-fiskal-dan-perbankan-terhadap-pengembangan-green-building-83/ Ajzen, I. & Fishbein, M. (2001). Attitudes and the attitude-behavior relation: Reasoned and automatic processes. European Review of Social Psychology, 11, Ajzen, I. & Fishbein, M. (1991). Belief, attitude, intention and behavior, reading. Mass: Addison-Wesley Publishing Co. Assael, H., (1992). Consumer Behavior and Marketing Action. 4th ed Boston: Pws-Kent Publishing Company. Blackwell, R.D., Miniard, P.W. & Engel, J.F. (2006). Consumer behavior. 10th edition,thomson Learning, South Western Borin, N., Mullikin, & Krishnan, R.. (2013). An analysis of consumer reactions to green strategies. Journal of Product & Brand Management, 22(2), Byrne, Michael. (2003). Understanding consumer preferences across environmental marketing mix variations. OIKOS University of Newcastle Chan, Y.K.R., (1999). Environmental attitudes and behaviour of consumers in China: survey findings and implications. Journal of International Consumer Marketing, 11(4), Chen, Y. S., & Chang, C. H. (2012). Enhance green purchase intentions: The roles of green perceived value, green perceived risk, and green trust. Journal of Management Dec Dima ision, 50(3), e-issn

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