UNDERSTANDING GREEN CONSUMERISM: HOW ENVIRONMENTAL CONCERN MEDIATES THE IMPACT OF ECO-LABELS ON BUYING BEHAVIOR

Abstract

Sustainability issues have increasingly shaped modern consumer behavior, leading to the rise of green consumerism. One key tool to encourage environmentally responsible purchasing is the eco-label, which informs consumers about a product’s environmental impact. However, its effectiveness, particularly in developing countries, remains uncertain. This study investigates the impact of eco-labels on consumer purchase decisions, with environmental concern as a mediating variable. A quantitative survey was conducted with 150 respondents who had previously purchased eco-labeled products. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) via SmartPLS 3. Findings show that eco-labels do not directly influence purchase decisions but have a significant indirect effect through environmental concern. In other words, eco-labels are more effective when consumers exhibit high environmental concern. The R² value indicates that eco-labels explain 51.6% of the variance in environmental concern, but only 6.2% in purchase decisions, suggesting other influencing factors. The study concludes that while eco-labels are valuable communication tools, their success depends on consumer awareness. Thus, marketers and policymakers should pair labeling efforts with environmental education and awareness campaigns to encourage sustainable consumer behavior. Future research should consider additional variables such as label trust, social norms, and personal values to deepen the understanding of green consumer behavior.