Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Abstract

Loloh Cemcem as a Green Product of Balis Local Wisdom

Author(s): Ni Wayan Ekawati, Ni Made Wulandari Kusumadewi, Anak Agung Sagung Kartika Dewi

Changing the purchase decision behavior of consumers is not an easy task. The consumers nowadays are considered to be intelligent consumers whom are supported by the advancement in information technology. This also applies to the decision to purchase products that are not well known by the public, specifically eco-friendly products or green products. The recent demands for green products have been increasing with the rise in consumer awareness regarding their health and the sustainability of the natural environment. Likewise, there was also a rise in demand for the loloh cemcem produced in Penglipuran Village, Bangli Regency. The need for green product is expected to cause the emergence of brand love towards green products which will result in the increase in positive word of mouth. The purpose of this research is to explain the influence of green product on the WOM regarding loloh cemcem Penglipuran Bangli, explain the influence of green product on the brand love towards loloh cemcem Penglipuran Bangli, explain the influence of brand love on the WOM regarding loloh cemcem Penglipuran Bangli, explain the role of brand love in mediating the relationship between green product and WOM regarding loloh cemcem Penglipuran Bangli. This research is conducted on all the regencies in Bali. There are 150 respondents selected as the sample of this research. The analysis technique used is the Partial Least Square (PLS) technique. The analysis results show that green product and brand love have a positive and significant influence on WOM. However, brand love is unable to act as the mediator in the relationship between green product and WOM. For the recommendation, green product producers are expected to emphasize on the coloring agents, the usage of natural preservatives, and to show the uniqueness of their green product which is expected to create positive WOM.

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