How Green Product Innovation Strengthens the Link Between Brand Image and Purchase Decisions

Abstract

The development of eco-friendly products has shown significant growth in line with increasing consumer awareness of sustainability issues. However, the effectiveness of green marketing in driving purchase decisions still shows inconsistent empirical findings, particularly among the Generation Z segment in Indonesia. This study aims to analyze the influence of green marketing on purchase decisions, with the mediating role of green brand image and the moderating role of green product innovation. The study employs a quantitative approach with an explanatory research design. Respondents were Generation Z individuals who had previously purchased eco-friendly products, selected using purposive sampling. Data were collected via a 1–5 Likert-scale questionnaire and analyzed using Partial Least Squares-based Structural Equation Modeling (SEM-PLS). The results indicate that green marketing has a significant effect on green brand image but does not have a direct effect on purchase decisions. Furthermore, green brand image also does not have a significant effect on purchase decisions and thus fails to mediate the relationship between green marketing and purchase decisions. Other findings indicate that green product innovation does not moderate the relationship between green marketing and green brand image. However, green product innovation was found to strengthen the influence of green marketing on purchase decision as well as the influence of green brand image on purchase decision. This study confirms that Gen Z consumers’ purchase decisions are not only influenced by green marketing communication but also require tangible evidence through credible eco-friendly product innovations.