Sustainability Awareness, Price Sensitivity, and Willingness to Pay Premium for Eco-Friendly Packaging among Gen Z

About Us

Ipmi Repository is an online archive service which is managed by IPMI Library - Learning Resource Center. Established for collecting, managing, saving, preserving and disseminating digital copies of intellectual output of IPMI International Business School such as academic journal, books, theses, Group Field Project, Community Involvement Project, Case Study, conference paper, and other types of research publication. The main objective of this repository is to provide long-term, public, open access and easily retrieve to the digital collection to support teaching-learning process.

"Knowledge without observation is nil"

Roverdi, Muhammad Anas Syauqi (2026) Sustainability Awareness, Price Sensitivity, and Willingness to Pay Premium for Eco-Friendly Packaging among Gen Z. Diploma thesis, IPMI Institute.

Text
Muhammad Anas Syauqi.pdf
Download (4MB)

Abstract

Even though there is an increasing concern about the sustainability of packaging, the transition to sustainable packaging has not been easily embraced because of the conflicting preferences of consumers and economic factors. This study investigates the impact of sustainability awareness, price sensitivity, brand trust and family socialization on the willingness of Generation Z consumers to pay premium for sustainable packaging, and how price sensitivity influences the relationship between sustainability awareness and willingness to pay. The research method used in this study was quantitative with a structured questionnaire which was distributed to 179 respondents of Generation Z who were chosen using purposive sampling technique in Java Island, Indonesia. Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to analyze data using SmartPLS. Interestingly, sustainability awareness, brand trust and family socialization were found to have significant negative effects on willingness to pay premium, whereas price sensitivity had the strongest negative effect among all the predictors. The price sensitivity was also shown to have a significant and negative moderating effect between sustainability awareness and willingness to pay, meaning that the negative effect is stronger among more price-sensitive consumers. Such results indicate that economic factors are more influential than psychological and social factors in driving Gen Z consumers' financial commitment to sustainable packaging, highlighting a persistent attitude–behaviour gap in this generation in the context of emerging markets.

Keywords: sustainability awareness, price sensitivity, brand trust, willingness to pay, family socialization

Item Type:	Thesis (Diploma)
Subjects:	H Social Sciences > H Social Sciences (General)
Divisions:	Thesis > Bachelor of Business Administration
Depositing User:	sandra margaretha
Date Deposited:	01 Oct 2026 03:42
Last Modified:	01 Oct 2026 03:42
URI:	http://repository.ipmi.ac.id/id/eprint/3072

Actions (login required)

View Item