Green Product Preferences with Respect to Cultural Influences: Empirical Study in Indonesia

Abstract

Nowadays, increasing awareness is directed toward the fulfilment of sustainability demands in production in rapidly developing Southeast Asian countries such as Indonesia. However, producing green products that satisfy customer preferences is still a challenging task for product designers and manufacturers. Cultural values can be a significant factor that influences customer preferences. The aim of this study is to investigate the influence of cultural values on green-product preferences. Data were statistically analyzed based on the fulfilment of critical threshold values for the modeling of a structural equation. According to the results, customer preferences in Indonesia were mostly influenced by uncertainty avoidance and long-term orientation. Further, additional product services were identified as the most important characteristic of green products for Indonesian customers.